What can you do with your money?

StocksóOwning Part of a Company

Shares of stock may be acquired on an organized exchange or through a stockbroker over the counter, or by direct purchase in some cases. When you buy stock, you become a part owner of the company and are known as a stockholder, or shareholder. Stockholders can make money in two waysóreceiving dividend payments and selling stock that has appreciated. A dividend is an income distribution by a corporation to its shareholders. Stock appreciation is an increase in the value of stock in the company, generally based on its ability to make money and pay a dividend. However, if the company doesn't perform as expected, the stock's value may go down. There is no guarantee you will make money as a stockholder. In purchasing shares of stock, you take a risk on the company making a profit and paying a dividend or seeing the value of its stock go up. Usually small shareholders donít have any influence on management, products and how the stock will be valued in future, or business decisions or policy. If you like to be successful investor you have to be very well informed. And if company gone to bankruptcy you loose all.

Life insurance

Insurance companies, among other products, offering life insurance policies. Well, you have to wait long before you see your money. In case that you need money urgently some insurance companies offer loans, but not convenient as bankís loan. And it can happen that insurance company bankrupt, so you will suffer loss.

Saving account (in general)

Bank is traditional way to keep money. Good sides are that you can access your money at any time, usually get some interest, move money easily from one account to another and usually have your savings insured by the government (depend from country to country). But again you can expect that you on time will loose. Bankís interest is under inflation rate. And any bank can bankrupt.

Invest in funds and bonds

There are a lot of different funds. For example pension funds, investment funds, etc. All of them collect money and make investments. And they act similar as stock companies. Again, you donít decide about your money, and you donít have any influence where funds money (you only have part of it) will be invested, but if things go wrong you suffer loss. And there is possibility that you received less than you give.
For above common is that you donít decide and have no influence on management and making decisions. In some ways of keeping money you have to wait for years to get your money (e.g. pension funds, life insurance). Shortly, you have to believe somebody whom you donít even know. And you canít use any of invested money, if you needed it at once.

Property investing

can be a very profitable way of investing. Real estate investing has created more millions investors than any other type of investing. It is a very popular way to invest for those who can afford it because it allows investors to hedge against inflation. There are also possible tax deductions and exclusions involved with real estate investing. It is also very possible for the price of the real estate to increase dramatically. Sometime low-liquidity can be a problem at the asking price. Zoning laws and environmental issues can have an economic effect on your real estate investments as well.

Selling agent is a person or agency taken by seller. His job is to sell. Usually advertising properties and offering at market. His goal is to make bigger price as much is possible. Seller pays him. Well, actually buyer do, but his fee is hide in the transaction price. Sometimes seller and selling agent have a deal to split extra profit if selling agent achieve higher price than is expected. Donít expect that selling agent will tell you as buyer whole truth. If there is something what can reduce price or even discourage buyer from buying he probably will try not to show it or at least not to mentioned it. All time selling agent try to be on both side or better say selling and buying agent, but having on mind that his profit increase as achieved price increase.

Buying agent is a person or agency taken by buyer. His job is to try to find desirable property. His job is to protect buyer. His job is to reduce buying price, as much is possible. Of course buyer pays him directly. His job is also to find any obstacles or anything what can be reason not to buy certain property. He will tell you what you can expect in future. And he is not paid depending to transaction, so if some property is not convenient to buy he will tell you and why.

Type of property investor

The conservative investor: Risk must be very low and the investor is prepared to accept lower returns to preserve capital. The adverse effects of inflation and tax will not be of concern provided the initial investment is protected. Whilst it is not possible to be definitive about the types of people who fall into any particular profile most investment advisors would agree that elderly investors, retirees or investors who are unwilling to take any risk, for some reason or other, can be considered as conservative investors.

The cautious investor: The investor is seeking better-than-basic returns but risks must be low. Typically an older investor seeking to protect wealth which have been accumulated. Investors who often fit in this profile include a trustee of an estate or those with only a few years from retirement who prefer to switch away from risky investments to reduce chances of losses in the value of their portfolio.

If all this raises too many questions for you, we have answers for you!