Seven Investment Terms Everyone Should Know

For those who have never given their financial future a second thought, the term "Financial Planning" could be a scary one. Investments can be a smart way to invest money for your future, but it can be confusing for those who have no experience in the financial business. Before you consult a financial planner it is wise to become familiar with some of the terminology that you are likely to hear from him or her.

* Mutual Fund-An investment made with money that is collected by individuals with an investment goal in mind. The mutual fund is handled primarily buy a person known as the fund manager. Mutual funds are easy and cost efficient, since you are not responsible for making the decision as to where to invest the money.

* Asset Allocation Fund-A mutual fund that incorporates several types of investments such as stocks, bonds, real estate, and foreign stocks. These are typically for the small investors who want to invest in a variety of funds in order to maintain a constant return.

* Risk-Return Trade-Off-This is the amount of money that you can stand to lose versus the amount of money you are willing to invest. Investments that are low-risk often have low payoffs, while investments that are high risk usually have higher payoffs. When investing money you must determine the amount of money you can lose before determining how much money you will invest and where you will invest it.

* Compounding-Money made from an investment that will then be reinvested into the same or another investment to generate its own earnings.

* Bonds-Money that is loaned to a company or the government at a specified interest rate. The company will usually give some kind of document that states the amount loaned and the agreed upon interest rate and the total amount that will be repaid at a specific time or "maturity date".

* Stocks-Pieces of a company that are for sale. One would buy stocks from a company at a given price in hopes that the company would gain a significant amount of money and that they would be able to sell the stocks at a higher price.

* Money Market Funds-Money invested in debt by a mutual fund. The goal is to obtain money from interest to the debt. The benefit of the Money Market Account is that they offer very low investments of less than $1.00.

Timothy Gorman is a successful Webmaster and publisher of Debt-Relief-Solutions.com. He provides more debt relief, credit counseling, repair and free financial planning information that you can research in your pajamas on his website.

---

Angel Investors: Who They Are & When Are They Appropriate

Angel investors are individuals who invest in emerging business ventures.... Read More

Looking For a Safe Investment? Try a Certificate of Deposit

If you are looking for a safe investment and you... Read More

Can Your Annuity Do This?

Many people buy annuities according to their agent's recommendations. However,... Read More

How to Invest Overseas - Intelligently!

In recent months, many advisors have talked a lot about... Read More

Investing In Sons Business Could Cause A Real Family Feud

Q: My youngest son wants to borrow $5,000 to start... Read More

Real Estate Clubs Hot Among Investors

Six or seven years ago, the stock market was booming,... Read More

Critical Investors Business Daily Responsibilities - If not Followed Could Cost You Millions!

When thinking about the investors business daily responsibilities in today’s... Read More

Finding the Perfect Company

The perfect company - it's the holy grail of the... Read More

For Entrepreneurs A SIMPLE Plan May Be Best

Q: I own a small decorating business and I'll be... Read More

Creating a Financial Future - Putting Your Plan Into Action Part 1

This column has previously discussed "picturing the future that we... Read More

Making Your Investment Dollars Work for You

Investments are scary for some people, especially those who have... Read More

Copy Cat or How to Use a Successful Trading System

How many books have you read about successful traders? How... Read More

Volatile Range

The stock market fell sharply Thu and Fri before and... Read More

How to Calculate the Value of Your U.S. Savings Bonds

If you're like many Americans over the age of 55,... Read More

When It Comes To Investing, Asking The Right Questions Can Help You Make The Right Decisions

Are you ready to open your pathway to financial independence?Well... Read More

Planning Starts with the Basics

When developing a plan for your finances, the toughest question... Read More

Critical Options Investing Tip When Trading Naked Calls and Puts

An option is a derivative trading product that is best... Read More

Keep Stock Market Investment Profits

Have you had one of those huge investment winners ?... Read More

Shareholders Meeting Changing With Times

A significant number of corporations that settled accounts in the... Read More

Finding a Broker

"Hey Joe! I need help finding a broker. I notice... Read More

Your Portfolio and ?Old Ironsides?

The USS Constitution first ventured into the waters in 1798.... Read More

Gold; What Type of Gold to Buy

JewelryThe advantages are:? Gold Jewelry is the easiest of the... Read More

Emotions: A Traders Worst Enemy; Get Rid of Fear and Greed - Youll be Glad You Did

You hear it over and over and over in books,... Read More

The Differences Betweeen the Wealthy and Everyone Else

I recently received an e-mail from a young lady who... Read More

Inflation Proof Your Investment Portfolio with ETF?s

Even though inflation has been relatively quiet in the U.S.... Read More

Brain Snappers and Other Wall Street Nonsense

The last time you spoke with your broker did he... Read More

Financial Planners

"Financial planners are like dentists: they may occasionally inflict pain,... Read More

Advice for International Investors on How to Safeguard Their Profits

What are the risks?Today, investors are increasingly turning to global... Read More

The Power of Small Numbers: Trading Success is Based on Consistency, Not Home Runs

Online trading is so seductive - just sit, click, and... Read More

Trading Expert Discovers Ways To Beat Stock Market Odds With Money Management

The first point to mastering money management is that you... Read More

Why You Need To Buy and Sell Gold Coins (Part 3)

Putting Rare Coin Market Cycles to Work for You...Until recently... Read More

The American Age of Inflation is Over

"The American Age of Inflation is finished." So says economist... Read More

Art Investing for a Financial Future

When we think of investing we probably conjure images in... Read More