Traditional Investing Methods
You’ve heard about investing and know what it means in our society. Now, we will go over traditional investing
methods that you may have heard about.
Remember, investing involves time, money, and energy. Let’s take a look!
A 401K plan allows you to defer a portion of your paycheck
and invest that money into stocks. The
longer you work, the higher your 401k grows.
A benefit of a 401k is that your employer sets this up for you so you
don’t have to worry about complicated setups.
Usually, you can choose from 2-6% of your paycheck to be invested. Your account manager will help you pick the
right investments that suit your particular needs.
With bonds, the investor (that’s you) purchases debt issued
by various companies that promise an annual return on your investment until the
debt is repaid. The value of your
investment fluctuates due to inflation.
With cash investing, money is invested in short-term, low
risk investments like certificate of deposits, high-yield bank accounts, and
money market funds. A common form of
cash investing is a savings account that usually yields just 1-2% annual
returns at the most. A benefit is your
funds are insured up to $250,000, which means they are backed by the government.
Many people invest in homes and use them as rental
properties. By purchasing a primary or
secondary home, you can either gain funds by collecting rent or borrow against
the value of the home.
The stock market is a very popular option for investing. People make millions of dollars per year day
trading, long-term and short-term trading various stocks from different