Investment Options 
Along this Spectrum of Risk and Return we have various savings or investment options. We see our choices with greater clarity when we stop and simply divide these options into either savings or investment products. Organizing these financial savings and investment options enable us to make informed decisions. 
Savings versus investing -what's the difference? Savings vehicles always guarantee your principal and interest. The best vehicles for savings are CDs, treasury notes, treasury bills, treasury bonds, and fixed, and fixed-indexed annuities. These products are designed for savings and for protection of your retirement savings. Investment vehicles are market sensitive and, hence, never guarantee principal or interest. Account values go up and down with the stock market and the economy, because that is how they work. The best vehicles for investing are said to be stocks, mutual funds, and variable annuities (the word "variable" indicates these are market sensitive). These products are designed for potential, but inherent in that potential for gain is the obvious potential for loss as well. Hence, any portion of your money that you invest, must be a portion of your money with which you can afford to accept a loss in value. 
Please click on the investment options below for a better understanding of how these different investment products work. Investment Products This information is educational and should not be interpreted as financial advice. For advice that is specific to your circumstances, you should consult a financial or tax adviser. |
