Read on Twitter
10 Types of Investments (and How They Work)
//Thread//
//Thread//
1. Stocks
Stocks, also known as shares or equities, maybe the most well-known and simple type of investment.
When you buy stock, you’re buying an ownership stake in a publicly-traded company.
Pros: Good for long-term investment.
Ex: Shares of Apple, Facebook, etc.
Stocks, also known as shares or equities, maybe the most well-known and simple type of investment.
When you buy stock, you’re buying an ownership stake in a publicly-traded company.
Pros: Good for long-term investment.
Ex: Shares of Apple, Facebook, etc.
2. Bonds
When you buy a bond, you’re essentially lending money to an entity.
Generally, this is a business or a government entity.
Companies issue corporate bonds, whereas local governments issue municipal bonds.
Tip: Look for AAA-rated bonds for safe investment.
When you buy a bond, you’re essentially lending money to an entity.
Generally, this is a business or a government entity.
Companies issue corporate bonds, whereas local governments issue municipal bonds.
Tip: Look for AAA-rated bonds for safe investment.
3. Mutual Funds
A mutual fund is a pool of many investors’ money that is invested broadly in a number of companies.
Mutual funds can be actively managed or passively managed.
Actively managed funds charge higher fees than passively managed funds.
A mutual fund is a pool of many investors’ money that is invested broadly in a number of companies.
Mutual funds can be actively managed or passively managed.
Actively managed funds charge higher fees than passively managed funds.
4. Exchange-Traded Funds
Exchange-traded funds (ETFs) are similar to mutual funds in that they are a collection of investments that tracks a market index.
Unlike mutual funds, which are purchased through a fund company, shares of ETFs are bought and sold on the stock markets.
Exchange-traded funds (ETFs) are similar to mutual funds in that they are a collection of investments that tracks a market index.
Unlike mutual funds, which are purchased through a fund company, shares of ETFs are bought and sold on the stock markets.
5. Certificate of Deposit
A certificate of deposit (CD) is a very low-risk investment. You give a bank a certain amount of money for a predetermined amount of time.
When that time period is over, you get your principal back, plus a predetermined amount of interest.
A certificate of deposit (CD) is a very low-risk investment. You give a bank a certain amount of money for a predetermined amount of time.
When that time period is over, you get your principal back, plus a predetermined amount of interest.
6. Retirement Plans
There are a number of types of retirement plans. Workplace retirement plans, sponsored by your employer, include 401(k) plans and 403(b) plans.
If you don’t have access to a retirement plan, you could get an individual retirement plan (IRA).
There are a number of types of retirement plans. Workplace retirement plans, sponsored by your employer, include 401(k) plans and 403(b) plans.
If you don’t have access to a retirement plan, you could get an individual retirement plan (IRA).
7. Options
An option is a more complicated way to buy stock.
When you buy an option, you’re purchasing the ability to buy or sell an asset at a certain price at a given time.
There are two types of options: call options, for buying assets, and put options, for selling options
An option is a more complicated way to buy stock.
When you buy an option, you’re purchasing the ability to buy or sell an asset at a certain price at a given time.
There are two types of options: call options, for buying assets, and put options, for selling options
8. Annuities
Many people use annuities as part of their retirement savings plan.
When you buy an annuity, you purchase an insurance policy and, in return, you get periodic payments.
While annuities are fairly low risk, they aren’t high-growth.
Many people use annuities as part of their retirement savings plan.
When you buy an annuity, you purchase an insurance policy and, in return, you get periodic payments.
While annuities are fairly low risk, they aren’t high-growth.
9. Cryptocurrencies
Cryptocurrencies are a fairly new investment option.
Bitcoin is the most famous cryptocurrency, but there are countless others, such as Litecoin and Ethereum.
Cryptocurrencies are digital currencies that don’t have any government backing.
Cryptocurrencies are a fairly new investment option.
Bitcoin is the most famous cryptocurrency, but there are countless others, such as Litecoin and Ethereum.
Cryptocurrencies are digital currencies that don’t have any government backing.
10. Commodities
Commodities are physical products that you can invest in.
They are common in futures markets where producers and commercial buyers – in other words, professionals – seek to hedge their financial stake in the commodities.
Commodities are physical products that you can invest in.
They are common in futures markets where producers and commercial buyers – in other words, professionals – seek to hedge their financial stake in the commodities.
If you liked this thread then please follow @DecipherWealth and RT this thread 
https://twitter.com/DecipherWealth/status/1380863664551391232
https://twitter.com/DecipherWealth/status/1380863664551391232
