While it is nice to have money to invest, deciding where to safely invest money to earn a decent rate of investment return can be difficult. There are many investment options, some of which are dependent upon the amount of money to invest and the investment time-frame.
Before considering where to invest money, it is important to understand what investing is. Those with money to invest must realize is that investing money and trading money are not the same thing, and mixing the two can have disastrous results. An investment is a long-term commitment to place money in a safe financial product with the assumption that over time the investment will grow in value. A trade is a short-term purchase of a financial product that is done in an attempt to capitalize on near-term events that may affect the price of the financial product.
Those with money to invest need to focus on long-term investing that will allow their money to safely grow over time. If the money is needed in the short-term, then it should be held in a savings account or cash-equivalent financial product, such as a Certificate of Deposit (CD), rather than invested in long-term investments.
While not a complete list of the myriad of investment options, the following are some investment ideas that those with money to invest should consider.
Long-term investment returns can be increased if the dividends from stocks or funds are reinvested to purchase additional shares of the dividend paying stocks or funds. The key thing that those with money to invest need to focus on is the potential for long-term investment gains, and avoid worrying about short-term market gyrations.
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