Friday, December 24, 2010

Long Term Investments for the Future by Ravinder Tulsiani

Long Term Investments for the Future by Ravinder Tulsiani

If you are ready to invest money for a future event, such as
retirement or a child’s college education, you have several options.
You do not have to invest in risky stocks or ventures. You can easily
invest your money in ways that are very safe, which will show a decent
return over a long period of time.

First consider bonds. There are various types of bonds that you can
purchase. Bond’s are similar to Certificates of Deposit. Instead of
being issued by banks, however, bonds are issued by the Government.
Depending on the type of bonds that you buy, your initial investment
may double over a specific period of time.

Mutual funds are also relatively safe. Mutual funds exist when a group
of investors put their money together to buy stocks, bonds, or other
investments. A fund manager typically decides how the money will be
invested. All you need to do is find a reputable, qualified broker who
handles mutual funds, and he or she will invest your money, along with
other client’s money. Mutual funds are a bit riskier than bonds.

Stocks are another vehicle for long term investments. Shares of stocks
are essentially shares of ownership in the company you are investing
in. When the company does well financially, the value of your stock
rises. However, if a company is doing poorly, your stock value drops.
Stocks, of course, are even riskier than Mutual funds. Even though
there is a greater amount of risk, you can still purchase stock in
sound companies, such as G & E Electric, and sleep at night knowing
that your money is relatively safe.

The important thing is to do your research before investing your money
for long term gain. When purchasing stocks you should choose stocks
that are well established. When you look for a mutual fund to invest
in, choose a broker that is well established and has a proven track
record. If you aren’t quite ready to take the risks involved with
mutual funds or stocks, at the very least invest in bonds that are
guaranteed by the Government.

About the Author: Ravinder Tulsiani is a published author who has
written about personal finance, real estate, self-help and online