Wednesday, April 11, 2012

How do you invest money without stocks? | Finance information

Question by : How do you invest money without stocks
I do not understand the whole stock thing, so i got to thinking: how ELSE can one invest money for the long haul as well as short term?EE bonds would be a good way to start? How else should I invest without risking my money stupidly? Best answer:

Answer by Common Sense
EE Bonds, Savings Accounts & CD?s are not investments ?. they are savings. These savings vehicles have only one risk ?. The loss of purchasing power due to inflation. Over long periods of time ?. this is a real risk ?. it?s just about guaranteed. That car you can buy today may cost $ 15,000 ?. in 10 years that same car will cost $ 25,000 ??. with interest your savings will not be able to buy that car. Savings are good for short term goals and emergency money.Investments can beat inflation ? but they also carry risk. By diversification and the right asset allocation, you can minimize the risk.Read;Investing for DummiesStock investing for DummiesMutual Funds for Dummies

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