Investing And Investments

Advice And Tips On Investing And Investments

Every American worker should know the basics of investing and investments. Over half of Americans live paycheck to paycheck and do not know too much about investing and investments and do not invest any portion of their hard earned money. Over 56% of American workers have nothing to do with mutual funds or the stock market. Most American workers do not have the money to invest and are on a rat race where they live paycheck to paycheck. Those who have money to invest are afraid to invest because they have little to no knowledge of investing and investments. Investing and Investments are extremely important to every hard working American worker. Those who are disciplined and invest their money in investments consider investing as their ticket to financial security and financial independence. Investing when the investor is at a young age provides many long term benefits where they can get strong returns on their money. There are various different types of investments people can invest. Bank’s savings accounts will show the least amount of return since it is the safest. Investing in the securities markets will produce high returns due to the risks involved than investing in a bank CD or bank money market account. Your investments will more than likely outperform the inflation rate as living costs go up.

There are mutual funds where investors can invest in where you can put away a few hundred dollars every month and the mutual fund manager will invest in several different companies for diversification. There are long term investments and short term investments. Investing in one’s primary home is probably the biggest investment a person will make in their lifetime. Most homeowners have 30 year fixed rate mortgages and after 30 years, they own their home free and clear. Also, home values increase in value as time goes by.

Investor’s Goal In Investing And Investments

A novice investor needs to first think of what their goals are before investing their hard earned money. Is it for retirement? If it is for long term investment such as when the person retires, there are great tax deferred retirement investment plans to choose from. Maybe the investor wants to get the most return for their money and willing to take some risk. They can be day traders in the stock market and hire a stockbroker to consult with and discuss the level of risk tolerance they are willing to take. Many feel that the best and safest investments is in real estate. Some first time home buyers purchase a two to four unit building as their first home and live in one of the units and rent out the rest of the units in the building. This is one of the best investments any home buyer can make by buying a two to four unit building. Many times the home buyer can live rent and/or mortgage free with two to four unit building.

Investing In A Home

A person’s primary single family home will probably be the single largest investment. Many folks who are renting should consider being a homeowner. Paying rent is an expense. Paying a mortgage loan payment every month is investing in your home because a portion of your monthly mortgage payment will go towards paying down the principal balance of your mortgage loan balance. Most homeowners choose a 30 year fixed rate mortgage loan and if they pay their scheduled mortgage payments for 30 years, they own their home outright after they pay off the mortgage loan balance. Also, their homes will have appreciated in value over the years. A single family home is a wise investment and most people’s first investment.

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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