Tommy Shek – Different investment options for all pocket types and age groups – Times Square Chronicles

Investing can seem daunting; However, there are several specific steps everyone can take to make investments that are not only easy and accessible, but also safe and beneficial. Several factors influence which investments might be the best at any time; these include the individual’s current career path and the amount of money they have set aside for investment purposes. Here is a brief overview of some low to high risk investments you can try depending on your personal goals and lifestyle.

Savings accounts

Cash management accounts and online savings accounts combine the features of checking accounts and savings accounts. They often pay higher interest than a traditional bank account. Some may produce more than 3% interest. The interest amount may come into your account regularly or you may need to request it from time to time. You can write checks to your cash management account or access funds by credit card. When you have an account with a bank, you usually won’t find many of these features useful, even though banks offer cash management services with their internet banking services. If you plan to invest in this type of account, add at least 3-6 months of your living expenses.

Government bonds

Government bonds are government-to-government loans that pay interest to investors. As a result, they are very low risk but offer lower returns than other types of bonds with more risk and potentially attractive rewards. Government bonds are virtually safe, so they tend not to offer returns as high as other investments, notes Tommy Shek. Specifically, bonds are a few types of investments that provide a safe haven for investors who may not be emotionally equipped to deal with sudden market volatility or falling stock values. If you want to invest in these vehicles, you can contact an investment bank, the government or a broker.

Mutual fund

Suppose you don’t want to take on the responsibility of managing an entire portfolio. Mutual funds are a convenient way to have professionals buy and manage one or more investments, usually stocks or bonds, for you. Mutual funds offer an inexpensive way to diversify — spreading your money across multiple investments — to protect against the potential loss of a single investment. They allow you to take advantage of the valuable returns on investment in the stock market. One of your sources of mutual fund investment can be discount brokerage firms.

Index funds

According to Tommy Shek, index funds are passive funds that buy and hold all of the company’s shares in an index. Instead of trying to beat the market, it simply tries to match it. Because they cost less in management fees and tend to be less volatile than active funds, index funds are tax efficient. Plus, new investors who can’t take advantage of lower tax rates can use those valuable funds in one of these low-cost, tax-efficient investment vehicles for future growth.

Certificates of deposit, corporate bonds, dividend stocks, real estate, and other options are also there for any investor who wants to grow their money. But some of them can be expensive and risky. Therefore, it is better to study them well before doing anything.

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