With interest rates so low, trying to find a way to save money and earn interest can be difficult. Your run-of-the-mill bank savings account really only earns pennies on the dollar, and this doesn't provide you with much for the future. There are some other investments, however, that can help you plan for retirement or stockpile for a rainy day.
Your first step should be took look at what your company offers in terms of retirement plans. Many companies offer a 401 (k) plan, and this is simply a retirement plan where a portion of your income is deducted from each paycheck and then placed in a special account that earns interest. The best part about a 401 (k) is that most companies will match a portion of the money you put in it up to a set amount. That amount might by $5,000 or it might be $50,000. Either way, it's a great way to double the money you put aside for retirement. If your company doesn't offer this type of account, go to your bank and ask about IRAs or Investment Retirement Accounts. The money won't be matched, but it is still an excellent way to save for the future.
These days you hear a lot about investing in precious metals, such as gold or silver. The reason why people invest in these metals is because they tend to hold their value over time, and currently the price of gold especially is very strong. You can simply buy gold coins and store them in a good quality safe or a safety deposit box. Another option is to invest in a gold mutual fund, either a gold mutual fund or a gold exchange-traded fund. With a gold exchange-trade fund (ETF), the only asset in the fund is gold bullion. With a gold mutual fund, the investments are more varied, or diversified, and you will be putting money into mining operations for gold and other precious metals, as well as in gold bullion.
You don't have to just invest in gold; however, there are plenty of other ETFs and mutual funds that you might look at. There are differences and similarities between ETFs and mutual funds, including the fact that both are diversified to lower the risk to the investor. This means that the funds include a variety of different investment types or holdings, so that if one company or holding doesn't perform well, it won't adversely affect the overall performance of the fund. Mutual funds are professionally managed, and the value of mutual funds is set each day at the close of trading.
On the other hand, an ETF often has much lowers fees, and that can be a plus. The value of the ETF is much like the value of a single stock, as it fluctuates throughout the day, and you can buy and sell at any time during trading. This means you might be able to sell at a higher value during trading than at the end of the day. The value of the mutual fund holds steady at the value it had the day before at the close of trading, and then the value is set again once trading ends.
Funds, whether they are mutual funds or ETFs, tend to focus on a specific industry or area of the world or perhaps a currency. For example, there are Asia Pacific funds with investments holdings spread in a variety of Asian countries, such China, South Korea, Indonesia, the Philippines and other nations. A China fund is another option, and this would include holdings only in China and Hong Kong. The holdings for either of these funds might include investments in telecommunications, electronics, banking, real estate, energy or other industries. Another type of fund might be an energy fund, which would include investments in gas or oil exploration and production. There are thousands of funds to consider, so talk to a financial advisor about what will be best for your portfolio.
Your first step should be took look at what your company offers in terms of retirement plans. Many companies offer a 401 (k) plan, and this is simply a retirement plan where a portion of your income is deducted from each paycheck and then placed in a special account that earns interest. The best part about a 401 (k) is that most companies will match a portion of the money you put in it up to a set amount. That amount might by $5,000 or it might be $50,000. Either way, it's a great way to double the money you put aside for retirement. If your company doesn't offer this type of account, go to your bank and ask about IRAs or Investment Retirement Accounts. The money won't be matched, but it is still an excellent way to save for the future.
These days you hear a lot about investing in precious metals, such as gold or silver. The reason why people invest in these metals is because they tend to hold their value over time, and currently the price of gold especially is very strong. You can simply buy gold coins and store them in a good quality safe or a safety deposit box. Another option is to invest in a gold mutual fund, either a gold mutual fund or a gold exchange-traded fund. With a gold exchange-trade fund (ETF), the only asset in the fund is gold bullion. With a gold mutual fund, the investments are more varied, or diversified, and you will be putting money into mining operations for gold and other precious metals, as well as in gold bullion.
You don't have to just invest in gold; however, there are plenty of other ETFs and mutual funds that you might look at. There are differences and similarities between ETFs and mutual funds, including the fact that both are diversified to lower the risk to the investor. This means that the funds include a variety of different investment types or holdings, so that if one company or holding doesn't perform well, it won't adversely affect the overall performance of the fund. Mutual funds are professionally managed, and the value of mutual funds is set each day at the close of trading.
On the other hand, an ETF often has much lowers fees, and that can be a plus. The value of the ETF is much like the value of a single stock, as it fluctuates throughout the day, and you can buy and sell at any time during trading. This means you might be able to sell at a higher value during trading than at the end of the day. The value of the mutual fund holds steady at the value it had the day before at the close of trading, and then the value is set again once trading ends.
Funds, whether they are mutual funds or ETFs, tend to focus on a specific industry or area of the world or perhaps a currency. For example, there are Asia Pacific funds with investments holdings spread in a variety of Asian countries, such China, South Korea, Indonesia, the Philippines and other nations. A China fund is another option, and this would include holdings only in China and Hong Kong. The holdings for either of these funds might include investments in telecommunications, electronics, banking, real estate, energy or other industries. Another type of fund might be an energy fund, which would include investments in gas or oil exploration and production. There are thousands of funds to consider, so talk to a financial advisor about what will be best for your portfolio.
About the Author:
Cleveland Jernigan likes writing about investments. To get more information about Asia Pacific investments or to learn about various types of investment like Renminbi investment, visit these fund websites.
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