Investing money has become a necessity. In order to have future secured, investing money is a basic requirement. There are various types of investing money for a comfortable retirement. They are bonds, mutual funds, stocks, variable investment income, and predictable investment income and guaranteed investment income.
The six types of safest investment plan for a perfect and relaxing retirement are-
Bonds are the security that is founded on the debt. When one is purchasing a bond, one is lending their money to the company or government. In return for the borrowed money, the company or the government provides interest and then with time return the loan taken. These bonds are safe therefore they are highly opted. One always gets profits from the bonds when invested in any safe and stable company or government.
When someone invests in stocks or buys equities, he or she becomes the part owner of that particular company. This allows the person to vote in share holding meetings and receive ample amount of profits. These profits received by the share holders are known as dividends. The stock fluctuates every day and thus there is no guarantee that the person will receive the same profit everyday- it may increase or decrease. The stocks have more potential of profits than that of the bonds.
Mutual fund is an assortment of stocks as well as bonds. In this case one invests with various other investors. In this way one achieves specific amount of securities and profits. It can be large stocks as well as small stocks depending upon the investment in the industries, companies or the government. Here one can invest the without much experience or time. One always receives a large amount of money.
Variable Investment Income
This is one of the ways where the investment is lasting. It includes cash, equities and fixed income. The ready money and fixed income produces a large amount of money they generate in form of interest. There are various rules that must be followed properly and strictly. The income is generated on yearly basis.
Guaranteed Investment Income
The guaranteed investment income guarantees an income. It is recognized by the government and one will surely gain profit. Safe investments included certificates, treasure securities as well as fixed annuities. These are the primary sources of guaranteed investment income. The guaranteed investment income is the perfect way of investing during the retirement period.
Predictable Investment Income
The predictable investment income depends upon the circumstances and situations. These investments are not guaranteed investment income. However the profits are very high. Some of the predictable investments are corporate bonds and dividend income received from stocks and bonds. The predictable income should be opted along with the guaranteed investment income. In this way one will get supplement income along with the guaranteed income
Therefore before selecting and investing money in any particular investment plan, one should find out all the details along with advantages and disadvantages and then only finalize the investment path.
About the Author:
The above article is composed by Olivia Kane who is associated with PPL Financials right now and loves to impart her financial knowledge on investing money tips to her readers.