It's always a great idea to put away money for the future. However, currently, savings accounts just don't provide very much in the way of interest, and there are better ways to improve your return on investment than a typical bank savings account. Here are a few investment ideas that you might consider.
Your first step should be took look at what your company offers in terms of retirement plans. Many companies offer a 401 (k) plan, and this is simply a retirement plan where a portion of your income is deducted from each paycheck and then placed in a special account that earns interest. The best part about a 401 (k) is that most companies will match a portion of the money you put in it up to a set amount. That amount might by $5,000 or it might be $50,000. Either way, it's a great way to double the money you put aside for retirement. If your company doesn't offer this type of account, go to your bank and ask about IRAs or Investment Retirement Accounts. The money won't be matched, but it is still an excellent way to save for the future.
We have all seen ads all over television and the internet telling us how valuable gold is these days. Gold has always been a valuable commodity and that is especially true during these current economic times. That is because while the currency of various countries and the value of companies can rise and fall significantly, gold is always highly valued, and it sets the standard of value for everything else on earth. So while your dollar value might rise and fall, the value of gold holds steady in every country in the world. To invest in gold, you can buy into an exchange-traded fund (called an ETF) that invests in gold bullion or you can buy shares in a gold mutual fund or precious metals mutual fund. This will include investments in the mining of gold and other precious metals such as silver, as well as investments in actual gold bullion. Another option is to purchase gold coins, such as American Eagles or Krugerrands and store them securely.
On that same topic, there are many other types of ETFs and mutual funds that can be smart investment opportunities. These are both funds, but they have some key differences. Both funds are generally diversified, spreading your money among many different holdings to decrease the overall risk. The value of your mutual fund is set at the end of each trading day. Mutual funds have some expenses attached to them, such as commission fees and redemption fees, and these funds are professionally managed.
An ETF is somewhat different, and often the fees associated with ETFs are lower than you would pay with a mutual fund. Another way that these two investments differ is in how the value is set. An ETF's value will rise and fall throughout the trading day, and you can buy and sell shares during trading, much like you can a stock. This can be an advantage because the value at the end of trading might be a bit lower than it is at some point during the trading day.
Funds, whether they are mutual funds or ETFs, tend to focus on a specific industry or area of the world or perhaps a currency. For example, there are Asia Pacific funds with investments holdings spread in a variety of Asian countries, such China, South Korea, Indonesia, the Philippines and other nations. A China fund is another option, and this would include holdings only in China and Hong Kong. The holdings for either of these funds might include investments in telecommunications, electronics, banking, real estate, energy or other industries. Another type of fund might be an energy fund, which would include investments in gas or oil exploration and production. There are thousands of funds to consider, so talk to a financial advisor about what will be best for your portfolio.
Your first step should be took look at what your company offers in terms of retirement plans. Many companies offer a 401 (k) plan, and this is simply a retirement plan where a portion of your income is deducted from each paycheck and then placed in a special account that earns interest. The best part about a 401 (k) is that most companies will match a portion of the money you put in it up to a set amount. That amount might by $5,000 or it might be $50,000. Either way, it's a great way to double the money you put aside for retirement. If your company doesn't offer this type of account, go to your bank and ask about IRAs or Investment Retirement Accounts. The money won't be matched, but it is still an excellent way to save for the future.
We have all seen ads all over television and the internet telling us how valuable gold is these days. Gold has always been a valuable commodity and that is especially true during these current economic times. That is because while the currency of various countries and the value of companies can rise and fall significantly, gold is always highly valued, and it sets the standard of value for everything else on earth. So while your dollar value might rise and fall, the value of gold holds steady in every country in the world. To invest in gold, you can buy into an exchange-traded fund (called an ETF) that invests in gold bullion or you can buy shares in a gold mutual fund or precious metals mutual fund. This will include investments in the mining of gold and other precious metals such as silver, as well as investments in actual gold bullion. Another option is to purchase gold coins, such as American Eagles or Krugerrands and store them securely.
On that same topic, there are many other types of ETFs and mutual funds that can be smart investment opportunities. These are both funds, but they have some key differences. Both funds are generally diversified, spreading your money among many different holdings to decrease the overall risk. The value of your mutual fund is set at the end of each trading day. Mutual funds have some expenses attached to them, such as commission fees and redemption fees, and these funds are professionally managed.
An ETF is somewhat different, and often the fees associated with ETFs are lower than you would pay with a mutual fund. Another way that these two investments differ is in how the value is set. An ETF's value will rise and fall throughout the trading day, and you can buy and sell shares during trading, much like you can a stock. This can be an advantage because the value at the end of trading might be a bit lower than it is at some point during the trading day.
Funds, whether they are mutual funds or ETFs, tend to focus on a specific industry or area of the world or perhaps a currency. For example, there are Asia Pacific funds with investments holdings spread in a variety of Asian countries, such China, South Korea, Indonesia, the Philippines and other nations. A China fund is another option, and this would include holdings only in China and Hong Kong. The holdings for either of these funds might include investments in telecommunications, electronics, banking, real estate, energy or other industries. Another type of fund might be an energy fund, which would include investments in gas or oil exploration and production. There are thousands of funds to consider, so talk to a financial advisor about what will be best for your portfolio.
About the Author:
Cleveland Jernigan likes writing about investments. To get more information regarding Asia Pacific investments or to learn about different types of investment such as Renminbi investment, check out these fund websites.