Stocks; Research, research, research!!! When investing into stocks look into that company. How they got started, why they do what they do and what they have planned for the future. That should get you started in looking at stocks. But what is a stock? It is a % of ownership into a corporation. Owning a stock has a risk like every acting in life, that is why research is important. You must also consider two things. 1) Watch your stock, be aware of it. Be intimate with your investment. 2) Go with a broker with a great representation who is a hands on kind of person.
Bonds; The indebted entity (issuer) issues a bond that states the interest rate (coupon) that will be paid and when the loaned funds (bond principal) are to be returned (maturity date). Interest on bonds is usually paid every six months (semi-annually). The main categories of bonds are corporate bonds, municipal bonds, and U.S. Treasury bonds, notes and bills, which are collectively referred to as simply “Treasuries”. In layman terms, a bond is basically identical to mutual funds. Expect Bonds are through a corporation, and a mutual fund is through banks.
Mutual Fund; A mutual fund pools money together from thousands of small investors and then its manager buys stocks, bonds or other securities with it. In the past you could find a Mutual Fund starting at about 10%, nowadays hunting down an average of 0.96% to 4.28%. Either way, it still comes down to RESEARCH!!! You can find a well worth it % for what you are looking for. A little adds up to a lot.
Remember, save a little here and there, and spend less while your investments earn money. These 3 assets are not for everyone. That is why when you workout your financial portfolio thing about what you like and don’t like. It’s about being comfortable with your money. Listen to your heart, research effort and a financial consultant to finalize your decision.