Personal investment types – presented by David Tanner
Two types of investments:
- Lender (fixed)
- Savings accounts
- Certificates of deposit (CD’s)
- Bonds
- Government
- Corporate (junk)
- Municipal
- Fixed annuities
- These are, in essence, CD’s with an insurance company
- Mortgages
- The risk with this type of investment is low, the return is usually simple interest, the rate of return is usually between 4 and 7 percent, the purpose is to preserve wealth, and inflation can diminish the actual gains
- Owner (equity or growth)
- Starting a business
- Commodities (gold, silver, etc.)
- Real estate
- Stocks in public companies
- This risk with this type of investment is higher, the returns are usually capital gains (buy at one price and sell at another), the rate of return is usually 10 to 12 percent, and the purpose is to build wealth.
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