| Many people plan to depend solely upon their social | | | | renting it to tenants is a great way to ensure long |
| security checks to get them by in their golden years, | | | | term income streams for you long into retirement. |
| but the cold, hard fact of the matter is that social | | | | People will always need a place to live and property is |
| security is not enough. In todays economy, where | | | | the one thing that cant be created or grown. In fact, |
| housing prices and rental rates have risen at | | | | before considering the many options listed you may |
| phenomenal rates, the $800 per month that social | | | | want to strongly consider investing in real estate. |
| security pays is barely enough to cover housing | | | | Bonds |
| costs in most cases, much less insurance premiums | | | | Bonds are a safe way to ensure that at the very |
| and food. | | | | least, when the term of the bond is up and you cash |
| For this reason, it is important that everyone develop | | | | it in, you will walk away with your initial investment. A |
| a financial plan, and your financial plan should start | | | | bond is a promissory note from the government or a |
| with investing. Investing will help ensure a steady | | | | private company, in which you loan them a certain |
| source of income long into retirement, making your | | | | amount of money, and in return, they agree to pay |
| life much easier and more enjoyable. The following | | | | you back with interests in a set amount of time. |
| are brief descriptions for beginning investors to help | | | | Mutual Funds |
| familiarize themselves with the many different kinds | | | | Mutual funds usually reward the broker in charge of |
| of investment options available: | | | | them better than the investor, but they are still an |
| 401K Plans | | | | investment option that is available, and one which |
| 401K Plans are the most common type of | | | | requires less risk on the part of the investor. What |
| investment, and one in which almost every worker | | | | essentially occurs when investing in mutual funds is |
| has. The reason for this is they are the easiest | | | | that a broker manages your money and invests it in |
| investment because they require very little attention | | | | a list of various stocks so that your money is |
| on the part of the workers who have them. They | | | | diversified and the risk of you losing it all quickly is |
| are so easy that workers dont even have to worry | | | | lessoned. |
| about contributing to them, for their employer does it | | | | Money Market Funds |
| for them. In fact, most workers with 401K Plans | | | | Money market funds are a safe short-term |
| never even notice the deduction from their | | | | investment option. This kind of investment makes |
| paycheck. | | | | you an independent shareholder in the company in |
| Stocks | | | | which you invest and requires you to pay only $1 per |
| Stocks are a common type of investment amongst | | | | share. In addition, these investments often come |
| the population who makes more that $125,000 | | | | with check writing privileges, allowing you to use the |
| annually; however, it is growing more common to see | | | | money whenever you need or want to. |
| more middle class households invest thanks to the | | | | Annuities |
| availability of online investing and lower fees | | | | Annuities offer you the chance of developing |
| companies offer. Investing in stock is a wise option | | | | tax-deferred income. Annuities are an agreement |
| and provides great returns for your money. If you | | | | between you and an insurer, in which your |
| decide to use this option you may want to strongly | | | | investment protects your earning potential should |
| consider hiring a broker to guide you in the decision | | | | you run into job problems down the bumpy road that |
| making process; however, if you are part of the | | | | is life. |
| middle class just starting out and cant afford a | | | | Brokered Certificates of Deposit (CDs) |
| broker, you will want to make sure and conduct | | | | Of all the investment options available, CDs offer the |
| thorough research before investing. There are many | | | | lowest return for your money. However, the upside |
| helpful websites that offer great advice. | | | | is that you can use the money at any time without |
| Real Estate | | | | paying penalties, even though you agreed to deposit |
| Real Estate is one of the most lucrative investment | | | | the money for a set amount of time. Life is |
| options available, and thanks to lax lending standards | | | | unpredictable, so this is a nice option to have. |
| almost everyone can invest in real estate with little | | | | Do not let yourself become one of the 80% of the |
| or no money out of pocket. Buying real estate and | | | | population that retires poor and struggling. |