Investing Made Simple

There are two ways you can invest?  You can invest through high risk or low risk investments.

1) High Risk Investment

High risk investments comes from owning things, such as stocks (owning a piece of a company), mutual funds (owning many different types of investments), collectibles (owning materials) and real estate (owning property).

When you have stock, you own a piece of a company.

When you have mutual fund, you own different type of investments.

When you have collectibles, you own materials.

When you have real estate, you own property.

2) Low-Risk Investment

Low risk investments comes from loaning money to banks, government, etc.  Examples are savings accounts (loaning money to financial institutions), CDs (loaning money to financial institution), MMDAs (loaning money to financial Institutions) corporate and government bonds (loaning money to companies and government entities)

When you have a Savings Account, you loan money to financial institutions.

When you have a Certificate of Deposit (CD), you loan money to financial institutions.

When you have a Money Market Deposit Account (MMDAs), you loan money to financial institutions.

When you have a corporate and government bonds, you loan money to companies and government agencies .

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