How soon would you want to know if your investment advisor wasn't telling you about the three major investment types? If you've only heard of two - Variable and Fixed, then you may have a problem. Unfortunately, many investment advisors routinely fail to present all three types: Variable, Fixed, and Indexed as valid investment choices to their clients. This is normally because they are unable to offer all three options or they have a personal dislike for one or more of these investment types. So what is the difference in these investment types and what do the terms mean? The simplest answer is that these terms define how interest is earned on your investment. More specifically, it tells you how your money is invested and if your money is protected from market fluctuations. Let's take a look at these various investment options.
HYIP is attractive for a lot of risk taking investors because they can invest with very small quantities. In addition, most HYIP programs are easy to get started in and follow even if you are relatively new to the investing world. Most HYIPs use a pyramid scheme, so that new investors actually provide cash to pay existing investors. As long as new investors keep coming on board, investors will continue to be paid. With a good high yield investment program this can work out, with poorly planned programs, you'll find that even the first payments are made fraudulently and things unravel fairly quickly.
A Fixed investment offers a pre-determined or fixed interest rate for a specified period. This is most commonly seen with bonds, CD's, annuities and universal life insurance products. Fixed investments have three major advantages over the other options. First, they provide a guaranteed or known interest rate that is disclosed prior to making your investment. Second, fixed investments are generally designed to protect your initial or principal investment. A Fixed investment also has two major pitfalls. First, because they provide a known or guaranteed interest rate, they generally provide a lower rate than what may be available when you're willing to risk your principal. Second, they normally have restrictions or penalties associated with any withdrawals made during the fixed interest rates term period. This is especially true with CD's and annuities. Overall, Fixed investments can be a great option for those not willing to risk some or all of their money, older clients using the investment interest to provide or supplement their income, and clients looking to provide a hedge against other, more aggressive investments.
High yield investment programs really took off with the introduction of electronic currencies such as e-gold. The reason for this is that investors can buy their electronic funds immediately and start investing right away. Often, these e-currencies can be purchased at a great rate as well, making them doubly attractive to investors. Once an investor begins to earn, he or she can cash out any time and will be paid in e-currency, which is then traded in for a cash value. Electronic currencies really brought the HYIP world to the investment forefront because it made the programs even easier to follow and interact with.
Like all types of investing, HYIP is not for everyone. Many investors believe that opportunities to get involved with an HYIP are just like deciding to throw your money away. Because of e-currencies, many people receive emails for various HYIP programs and consider them nothing more than spam from scammers who want to steal their money. In certain cases this may be true, in other cases an HYIP is a legitimate way to make a good return on even the smallest investment. It's all about choosing the right HYIP and knowing when to pull out if things start to get a bit shaky.If you are good at recruiting people to invest in the programs that you are interested in, than an HYIP may be perfect for you. So long as you can keep getting "referrals" or new investors, your HYIP will likely continue to pay well for a substantial period of time. It'll pay even better if the people that you recruit will also recruit, as it's a pyramid scheme that will allow you to make more money if more people get involved.
Here's the best investment strategy in 2014 and beyond for beginners who want to start investing money for retirement and keep it simple. In a 401k and/or Roth IRA account invest (monthly or each payday) equal amounts into a stock fund, bond fund, and money market fund. If your 401k has a stable account option use this instead of the money market fund if it pays more interest. Mutual funds are always one of the best investment ideas for most investors - if you invest money in low-cost no-load funds. (Your 401k plan should have no loads, sales charges). When investing money for retirement in 2014 and 2015 keep three factors in mind. Two of these always apply: keep costs low and invest money across the board in all three fund types listed above. Your third factor is to give money market funds equal weight in 2014 and beyond for added safety. Normally, you would give them less weighting.
HYIP is attractive for a lot of risk taking investors because they can invest with very small quantities. In addition, most HYIP programs are easy to get started in and follow even if you are relatively new to the investing world. Most HYIPs use a pyramid scheme, so that new investors actually provide cash to pay existing investors. As long as new investors keep coming on board, investors will continue to be paid. With a good high yield investment program this can work out, with poorly planned programs, you'll find that even the first payments are made fraudulently and things unravel fairly quickly.
A Fixed investment offers a pre-determined or fixed interest rate for a specified period. This is most commonly seen with bonds, CD's, annuities and universal life insurance products. Fixed investments have three major advantages over the other options. First, they provide a guaranteed or known interest rate that is disclosed prior to making your investment. Second, fixed investments are generally designed to protect your initial or principal investment. A Fixed investment also has two major pitfalls. First, because they provide a known or guaranteed interest rate, they generally provide a lower rate than what may be available when you're willing to risk your principal. Second, they normally have restrictions or penalties associated with any withdrawals made during the fixed interest rates term period. This is especially true with CD's and annuities. Overall, Fixed investments can be a great option for those not willing to risk some or all of their money, older clients using the investment interest to provide or supplement their income, and clients looking to provide a hedge against other, more aggressive investments.
High yield investment programs really took off with the introduction of electronic currencies such as e-gold. The reason for this is that investors can buy their electronic funds immediately and start investing right away. Often, these e-currencies can be purchased at a great rate as well, making them doubly attractive to investors. Once an investor begins to earn, he or she can cash out any time and will be paid in e-currency, which is then traded in for a cash value. Electronic currencies really brought the HYIP world to the investment forefront because it made the programs even easier to follow and interact with.
Like all types of investing, HYIP is not for everyone. Many investors believe that opportunities to get involved with an HYIP are just like deciding to throw your money away. Because of e-currencies, many people receive emails for various HYIP programs and consider them nothing more than spam from scammers who want to steal their money. In certain cases this may be true, in other cases an HYIP is a legitimate way to make a good return on even the smallest investment. It's all about choosing the right HYIP and knowing when to pull out if things start to get a bit shaky.If you are good at recruiting people to invest in the programs that you are interested in, than an HYIP may be perfect for you. So long as you can keep getting "referrals" or new investors, your HYIP will likely continue to pay well for a substantial period of time. It'll pay even better if the people that you recruit will also recruit, as it's a pyramid scheme that will allow you to make more money if more people get involved.
Here's the best investment strategy in 2014 and beyond for beginners who want to start investing money for retirement and keep it simple. In a 401k and/or Roth IRA account invest (monthly or each payday) equal amounts into a stock fund, bond fund, and money market fund. If your 401k has a stable account option use this instead of the money market fund if it pays more interest. Mutual funds are always one of the best investment ideas for most investors - if you invest money in low-cost no-load funds. (Your 401k plan should have no loads, sales charges). When investing money for retirement in 2014 and 2015 keep three factors in mind. Two of these always apply: keep costs low and invest money across the board in all three fund types listed above. Your third factor is to give money market funds equal weight in 2014 and beyond for added safety. Normally, you would give them less weighting.
About the Author:
Frank Miller has a Debt Consolidation Blog & Finance, these are some of the articles: Tips In Finding Bookkeepers For Bookkeeping Services You have full permission to reprint this article provided this box is kept unchanged.
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_7a.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_xx_usoz_4.gif)
No comments:
Post a Comment