What’s Your Net Worth?

Have you ever Googled a famous person to find out their net worth? I know I have. Do you know what it means? Do you know how it’s calculated? Most importantly do you know that you have one? In this week’s post, we are going to go over the basics of what a net worth is and why you should pay attention to it.

What’s a Net Worth?

A net worth is essentially the sum of your assets subtract your liabilities. Assets being the things you own such as cars, cash, homes, investments, anything of substantial value. Then liabilities being the thing you owe to others,this can include credit card debt, your mortgage, student loans,etc.

How to Calculate Your Net Worth

Calculating your net worth is an easy process. All you have to do is add up all the assets you possess, then subtract  the total sum of assets from your liabilities to get the final amount. For instance, imagine you own a house that’s worth $100,000. And a car that’s worth $40,000. Now imagine  you have $30,000 dollars worth of student loans. To calculate your net worth you add the house and car amount together to get your total assets which is $140,000 and subtract the student loans debt of $30,000 which would make your net worth $110,000. Based on the results you may find that you have a positive net worth if you have little debt, and  a negative net worth if you have a lot of debt. So, why is this important?

The Importance of Net Worth

It’s good to check your net worth from time to time because it will let you know if you’re on track to achieving your financial goals. Think of checking your net worth like checking how much you weigh. When you check out how much you weigh you have an accurate idea of if your workout and diet plans are effective. likewise checking your net worth will let you know if you will have an effective financial plan and strategy for investments, savings, and retirement.

Increasing Your Net Worth

The simplest way to increase your net worth over time is to diminish your debt and increase your assets. There are many ways to do this. Methods include paying off your debts, reducing your spending, and increasing your savings, investments, or income. However, whichever strategy you use, make sure you stick to it and stay consistent.

Net worths are not just for the rich. Although it’s a simple calculation. It’s an invaluable tool to check in with yourself to see how you are doing financially.  It will allow you to see if your strategy for accumulating wealth is working or if you need to reassess your financial plans. And who knows, if you check in with your net worth long enough and tweak your strategy, you may eventually find yourself among the very rich.

Is there another personal financial topic you would like to learn more about? Comment below or send your inquiries to stashadvisor@gmail.com. We are all about bringing you the most value!

This blog post is provided for discussion purposes, and is not intended as professional financial advice. It’s intent is not to be used as the sole basis for your investment or tax planning decisions. To get more information please speak with a financial planner. Under no circumstances does this information represent a recommendation to buy or sell securities.

Stock 101

When investing in stocks it is critical to not “put all your eggs in one basket.” In other words, it’s important  to keep your portfolio diversified. Check out infographic on the four ways you can diversify your stock investment portfolio.

Size:

A company’s size is measured by their current stock price multiplied by the number of share it has. This is called its market capitalization. Based on how big the company is, it is divided into three different categories. These are “large-cap”, “mid-cap”, and “small-cap”. The larger the capitalization the more stable the growth of a stock is expected to be. For example, it is less likely for a company like Microsoft to experience big jumps in it’s share price in relation to a new company that might have a lot of growth potential because Microsoft is established in the technology industry while a newer company is not.

Industry:

Stocks can belong to many different types of industries or sectors. These industries  include retail, technology, food, infrastructure, energy, and many more.

Geography:

Stocks are not only contained to  U.S., companies overseas also offer shares in their company. Purchasing stocks overseas can offer a great opportunity to increase your chances of an increased return on your investment as other countries might have larger developing markets.

Growth vs Value:

Stocks generally can be classified as a growth stock or a value stock. Value stocks can be described as having a low price and tend to belong to bigger, established companies. Value stocks are normally purchased because the purchaser believes the stock’s price is a bargain because they believe the price is less than what it will be worth in the future.

Growth stocks are generally smaller, new companies, in fast growing industries. Their price also tends to move up and down a lot more than value stocks. Growth stocks are purchased because the purchaser believes that a company’s earnings will grow significantly in the future.

To read even more about stock investment check out our post on What you Need to Know About Stocks.

 

Is there another personal financial topic you would like to learn more about? Comment below or send your inquiries to stashadvisor@gmail.com. We are all about bringing you the most value!

This blog post is provided for discussion purposes, and is not intended as professional financial advice. It’s intent is not to be used as the sole basis for your investment or tax planning decisions. To get more information please speak with a financial planner. Under no circumstances does this information represent a recommendation to buy or sell securities.

What you Need to Know About Stocks

At one point in your life you have probably heard about stocks. whether you were watching the news, listening to the radio, working at your job, or talking with friends. You hear things like “The stock market is looking good!” or “The stock market crashed!” But what does it all mean? What is a stock? Maybe the most you’ve heard is don’t buy stocks because it’s too risky. But rather than turning away from something that could help you become financially free because it is confusing why not learn more about it. I would like to explain the basics of what a stock is so you can gain a basic understanding of it. This is important because no matter what happens in your life, if you would like to be financially free, you will at one point or another buy a stock. So then, what is a stock?

What are Stocks?

A stock, also known as shares or equity, is an item that represents partial ownership of a company’s assets and earnings. This means that if you purchase a company’s stock, you are considered to be a partial owner of the company. The more stocks of a company you own, technically, the more of the company you own. Think of a company as a pie with 8 pieces, and each piece of the pie represents a stock in the company. If you own four pieces, you own half of the company. Now that’s all well and good but why would a company sell stocks?

Why do Companies Sell Stocks?

A company sells stocks because they want to raise money for activities and projects  to grow their company. Consider this example video What Are Stocks? from Investopedia.  In the video you meet Steve. Steve is opening a pie company. He needs $100,000 but doesn’t want to borrow the funds from a bank. Instead, Steve invests $10,000 of his own money and finds 9 other investors who are willing to each invest $10,000. In return he give each investor a certificate that represents 10% of his pie company, each certificate represents 10% of the company’s assets (e.g. the building, the pie pans, and the backing material, and 10% of any future earnings). Because of this, Steve has raised enough money to implement his projects.

Why do you Want to Own Stocks?

You may be asking what’s in it for me if I am pay money to own stocks? Well remember how you own the assets and earnings of a company? If a company does well, their business will grow which means that their ventures will become larger. As a result, their value increases, which means that your original investment in the company will grow. Because of this increase, you can sell your share of the company for a profit. Let’s go back to investopedia’s example. After a year, Steve’s pie company is doing well and the company’s total value increases to $200,000 this means that each share of the company is now worth $20,000. The original investors can sell their stock in the company to other investors for a $10,000 profit.

The Risk in Owning Stocks

While the up side to stocks is that it’s value can increase, you should also know that it has a downside. If a company’s venture doesn’t go well or something happens to the company’s value, it’s value will go down which means that if you sell your stock it will be worth less than what you  originally paid. For example, I’m sure in 2015 you heard about the e. coli scare for Chipotle. Prior to this, Chipotle’s stock did nothing but increase. At it’s height it’s stock price was over $700 per share! Once the news of it’s e. coli scare broke out, it’s stock gradually fell to the $400’s in early 2016. Such is the risks of owning stocks. There is however a way to reduce the risk of own stocks. This is called diversifying your portfolio.

Diversification and Types of Stock

First of all what is a portfolio? A portfolio is just the collection of stocks that you own. Diversifying your portfolio is when you own a different range of stocks. This is key to success in the stock market because not all stocks are the same, therefore they do not all perform the same. For example, if you have $170 to invest and you purchase type A of a stock at $100 a share and type B at $70 a share; then type A decreased to $90 a share, and type B increased to $110 a share you still made a profit of $30 ($100-$90=$10 lost for stock A, $110-$70=$40 gained from stock B, balancing out to $30 in profit because $40 profit -$10  lost = $30).  There are many different types of stocks but I’ll just tell you about five basics ones:

Size:

A company’s size is measured by their current stock price multiplied by the number of share it has. This is called its market capitalization. Based on how big the company is, it is divided into three different categories. These are “large-cap”, “mid-cap”, and “small-cap”. The larger the capitalization the more stable the growth of a stock will be. For example it is less likely for a company like Microsoft to make big jumps in it’s share price in relation to a new company that might have a lot of growth potential.

Industry:

Stocks can belong to many different types of industries or sectors. These industries  include retail, technology, food, infrastructure, energy, and many more.

Geography:

Stocks are not only contained to  U.S., companies overseas also offer shares in their company. Purchasing stocks overseas can offer a great opportunity to increase your chances of an increased return on your investment as other countries might have larger developing markets.

Growth vs Value:

Stocks can generally be classified as a growth or value stock. Value stocks can be described as have a low price. They tend to belong to bigger, established companies. Value stocks are normally purchased because the purchaser believes that the stock’s price is less than what it will be worth in the future. In other words it’s a bargain.

Growth stocks are generally smaller, new companies, in fast growing industries. Their price also tends to move up and down a lot more than value stocks. Growth stocks are purchased because the purchaser believes that a company’s earnings will grow significantly in the future.

Index Funds

Essentially an index fund is an investment fund that tries to imitate the performance of a group of stocks or investment type. Instead of purchasing different types of individual stocks, you invest in an index fund which reduces the risk of the amount of money you lose because it follows the ebb and flow of the whole stock market rather depending on the performance of one company. For example, you could have an index fund that contains stocks in many different industries such as technology, retail, restaurants, etc. because of this the price of it’s stock is more likely to rise steadily because it’s averaging the price of each of those different industries. One of the most popular indexes is the Standard & Poor’s 500 Index (S&P 500) which is an index of 500 stocks chosen for market capitalization, industry, and other factors. However, there is one caveat to owning a stock index instead of an individual stock. Because you are owning the average of multiple different stocks, it is much less likely to grow faster than an individual stock. But, the less you risk the less you will be rewarded.

Stocks, can often be seen as a mystical subject that people don’t understand. As a result you may want to avoid them. However, I hoped by at least learning the basics of what a stock is, I have demystified stocks a little bit for you. Learning, about stocks, and eventually investing in stocks is one of the easiest, and most rewarding investment moves that you can make to increase your wealth!

Is there another personal financial topic you would like to learn more about? Comment below or send your inquiries to stashadvisor@gmail.com. We are all about bringing you the most value!

This blog post is provided for discussion purposes, and is not intended as professional financial advice. It’s intent is not to be used as the sole basis for your investment or tax planning decisions. To get more information please speak with a financial planner. Under no circumstances does this information represent a recommendation to buy or sell securities.

Do You Know the Best Retirment Plan for You?

Figuring out your retirement can be confusing. You know you should do it, however knowing which plan to pick is when you can get a little lost. Check out our infographic below on the top pros and cons of some of the most common retirement plans companies offer or that you could invest in independently as it is always important to have a diversified portfolio for your retirement.  

What to know the pros and cons of any other retirement plan or got a great idea or suggestion of what you would like us to blog about? Please send your inquiries to stashadvisor@gmail.com. We are all about bringing you the most value!

This blog post is provided for discussion purposes, and is not intended as professional financial advice. It’s intent is not to be used as the sole basis for your investment or tax planning decisions. To get more information please speak with a financial planner. Under no circumstances does this information represent a recommendation to buy or sell securities.

Financial Mistakes You’ll Make in Your Twenties

Being in your twenties can be tough. One second you are in college, partying, enjoying life, and the next you’re juggling a job, new responsibilities, and figuring out what you want to do for the rest of your life. Because of all this juggling it can be very easy to neglect your finances and make mistakes because your mind is on other things. We have compiled a list of financial mistakes adults in their twenties often make so you can be ahead of the curve.

Not Making a Budget or Sticking to it

A major pitfall that many face in their twenties is not having a budget. A budget is crucial because it helps you check in with yourself everyday to make sure you’re meeting your financial goals. Without a budget you are basically a ship without a steer, going wherever your emotions blow you. On the other hand, even when some make a budget, they find it very hard to stick to that budget. It is understandable that it can be hard to stick to a budget sometimes but it is crucial that you make the effort to do so because it is the difference between wealth and being perpetual broke. To learn some tricks to staying on budget, check out our post on 3 Easy Budgeting Tips.

Failure to Negotiate Their Salary

Another mistake that people in there twenties make is not negotiating their salary with employers. Out of the many ways to make money this is one of the quickest and simplest ways to increase your income. Many often overlook this strategy for various reasons for example they are scared that they may get their offered rescinded, or they just don’t know how to ask. Consider this, if your potential employer valued your talent wouldn’t they want to try and keep you, and second, the worst they could say to you is no. The bottom line is negotiating your salary is the very definition of nothing to lose and everything to gain. Do some quick Google searches or use sites like Glassdoor to learn the average salaries for your field and level of position.

Relying on Credit Cards

Irresponsible use of a credit card can be a fatal move. Using them can be very seductive because it often feels like you’re not spending your own money. On top of that, you don’t have to pay off your credit card immediately. This gets many into the habit of deferring payments. Before you know it, you’ve dug yourself into a deep hole of debt, and you have no idea how to get out. To avoid this, it is always wise to do your research on the credit cards you use, and to pay on time and in full. If you happen to already be in the hole check out our post on 5 Ways to Eliminate Your Debt.

Neglecting Your Credit Score

Your credit score shows you and others how responsible you’ve been with the money you’ve borrowed over time, this includes not only loans but credit card history as well. A credit score ranges between 301 and 850. The higher the score the better your credit is considered. Your credit score is important because this score is taken into account when you want to make big purchases later on in life such as taking out a loan, buying a car, applying for a mortgage etc. It would be a huge mistake in your twenties to not know how credit scores work and not to build yours up, because it could restrict you from financial moves in the future.

Not Having an Emergency Savings Fund

As we all know life is very unpredictable, however it is safe to say that during your life there will be random unfortunate events that you can’t control. An emergency savings fund is protection between you and the random things in life. However, not many people in their twenties have this emergency buffer. Saving as little as $1,000 could save your finances on a rainy day. Check out our earlier blog on The Importance of Savings, and How to Start to learn more about getting started.

Neglecting to Invest Early

The idea of investing can seem complicated, which is why it’s understandable as to why a lot of people in their twenties don’t choose to invest. Not to mention that we have seen and heard about all sorts of things happening to the stock market. However, investing your money is one of the best ways to make your money work for you. Not to mention if you do your research and invest wisely you could find yourself not having to worry too much about your financial future regardless of what happens to you.

Waiting too Long to Save for Retirement

The biggest mistakes that people in their twenties make is not having a retirement strategy. This is an extremely easy thing to do because the idea of retirement seems to be light years away.  Another easy trap to fall into is the notion that you can easily make up for lost time not spent saving for retirement. In reality it is actually the opposite, check out our post on How Much Money Do You Really Need for Retirement? to put things into perspective. The earlier you start saving the sooner you can put compound interest into play making it easier and easier to prepare for retirement as you get older.

In your twenties there are many different things that are calling for your attention. This makes it very easy to neglect things that are not very present in your life. This can result in making a few mistakes that can haunt you for years to come. Hopefully by reading this list you can catch yourself or avoid making the above mistakes all together.

Got a great idea or suggestion of what you would like us to blog about? Please send your inquiries to stashadvisor@gmail.com. We are all about bringing you the most value!

This blog post is provided for discussion purposes, and is not intended as professional financial advice. It’s intent is not to be used as the sole basis for your investment or tax planning decisions. To get more information please speak with a financial planner. Under no circumstances does this information represent a recommendation to buy or sell securities.

7 Expenses That Destroy Your Wealth If You Aren’t Ready

When you’re in your twenties, there are many things that take getting used to. You start taking on many new responsibilities, and often times there are things you don’t think about,  but that doesn’t stop them from coming. One of the many things that happen are expenses that people don’t think about until they are about to undertake them. We decided to make things a little easier for you by compiling a list of 7 expenses to start considering.

Retirement

Retirement may seem like an event that is far away and may not be something that you consistently think about. However, the earlier you start planning for it, the better the chances you will have of supporting yourself when you eventually find yourself in the process of retiring. In 2013, the average age for men to retire was 63.9 and the average age for women was 61.9 (4). This means that if you are 22 you have about 40 years to save and invest before you retire. There are a few ways that you can prepare yourself. The first step is knowing how much you need for retirement. This amount varies from person to person so it’s important to do your research. After figuring how much it takes for you to retire, you need to figure out what to invest in. Examples of tools for retirement include 401ks, and Traditional or Roth IRAs. Finally, after figuring out how much you need to invest, and figuring out where you are going to invest it, you need to find out how much you are going to invest each month to get to your goals.

Insurance

You’ve probably already started paying for some form of insurance whether it be car, life, health, or home. However, it is still something to be aware of especially since it takes a percentage of your paychecks. The key to insurance is finding the right policy that works for you.

Higher Education

For those of you who are looking to get another degree, the cost of graduate school is another thing you should think about when planning your future finances. Depending on what degree you plan on getting, tuition varies widely. Of course it’s possible to get scholarships, or have your job pay for schooling but having a plan before you start applying will put you in a better position to know what you will need to do to pay for your degree.

Wedding/Honeymoon

The bottom line is that weddings and honeymoons are expensive. The average cost of a wedding is $26,444 (1) and the average honeymoon is about $5000 (2) with such a high price, and for an event for most that is generally inevitable, it’s smart to start thinking about how you are going to pay for it. It’s also a good idea to keep in mind that in 2013 the average age for marriage for women was 27, and 29 for men (5), so the earlier these costs are on your radar the better.

House/Mortgage

Buying a house is a major milestone in your life. There are two ways to pay for it. Either with cash up front or with a mortgage. A mortgage is a loan that is lent to a potential home owner so they can finance the purchase of their house. The national average for a mortgage is “$222,261 with a $1,061 average monthly payment for a 30-year mortgage at 4 percent, according to LendingTree” (3). According to Zillow, The average age of a first-time homebuyer is about 33 (5).

Babies

Babies may not be at the forefront of your mind, however they certainly are something to consider financially. According to parenting.com a 2010 USDA report, the average middle-income family will spend roughly $12,000 on child-related expenses in their baby’s first year of life, and that is just the beginning. You still have to account for the cost of taking care of your child for at least 18 years. You are looking at spending over $200,000 over 18 years.

Your Children’s College

The average annual cost of public universities is $30,000, while private universities are $40,000 which is something to consider if you plan to pay for your child’s schooling. For college alone that is a range of $120,000 to $160,000.

The future can be overwhelming, and often we are told by those who came before us that they had wished they had prepared for certain events better. If you know what is coming, you will have a much better opportunity to prepare for these events, and meeting them successfully. We have provided this list so you are sufficiently prepared for the events that will inevitably come your way. Hopefully this will help you prepare as you navigate through your life.

Did we miss any major expenses? Let us know in the comments sections below. Got a great idea or suggestion of what you would like us to blog about? Please send your inquiries to stashadvisor@gmail.com. or comment below We are all about bringing you the most value!

This blog post is provided for discussion purposes, and is not intended as professional financial advice. It’s intent is not to be used as the sole basis for your investment or tax planning decisions. To get more information please speak with a financial planner. Under no circumstances does this information represent a recommendation to buy or sell securities.

Sources:

1 Average Wedding Cost in the United States is $26,444. http://www.costofwedding.com/

2 How to save on a Caribbean honeymoon http://experience.usatoday.com/beach/story/caribbean/2014/06/04/caribbean-value-honeymoon/9970857/

3Realtor Magazine. http://realtormag.realtor.org/daily-news/2012/01/03/what-does-average-home-owner-pay-mortgage

4The Huffington Post. Kelsey Borresen –http://www.huffingtonpost.com/2013/11/14/married-young_n_4227924.html

5 Zillow: Average First-Time Homebuyer 33 Years of Age https://www.linkedin.com/pulse/zillow-average-first-time-homebuyer-33-years-age-carlos-m-moreno

An Easier Way to Make Money Than the Powerball

Yesterday everyone was lining up in gas stations, and 7-Elevens for Powerball tickets in the hopes of getting the $1 billion dollar prize. Did you win? Statistically speaking I would guess you probably didn’t. Winning the lottery is extremely hard, contrary to popular belief. Want to know a quicker, and easier way to make money? Pay yourself first. What is paying yourself first you ask?

Paying yourself first isn’t a hard concept to understand, but it’s critical to building wealth. It’s the simple idea of setting aside money from your income and putting it into your bank account before using the rest of your money for whatever else you normally use your money for. This technique is important because it’s the difference between perpetually being broke and having a nest egg of money that you can call on whenever you want.

There are many obligations that look to separate you from your money. Taxes, rent, and insurance companies to name a few. But these are not the only ones taking money from you, even you take money from yourself, in the form of overspending and buying thing you don’t need. After all this spending, you’re at risk of being in the same position you were before your last pay day. Just because you didn’t put away money before you started spending it. Don’t be a hamster on a hamster wheel. Pay yourself first!

How to Pay Yourself First

When I was first trying to learn how to build wealth I stumbled upon a book called “Rich Dad, Poor Dad” by Robert T. Kiyosaki. While reading this book I was introduced to the concept of paying yourself first. As I read, Rob introduced me to the difference between those who pay themselves first and those who don’t.

People Who Pay Themselves First                                   People Who Pay Themselves Last  

As you can see from the graphs the person who pays themselves first puts away a portion of their income into their savings and assets, while the person who doesn’t pay themselves first puts their money into their expenses first and doesn’t have any money left to put into their assets. You can imagine what each person’s bank account looks like over time. As Rob says “Poor people have poor habits” therefore all you have to do is start changing your financial habits to make your bank account look different.

Rob got the idea of paying yourself first from another book called “The Richest Man in Babylon” by George C. Clason. In this book you are told to put no less than a tenth of your income towards yourself. This may seem insignificant at first but imagine someone who saved $200 every month out of $2,000 (1/10th). In a year that person would have $2,400. If they did this for 10 years they would have $24,000, and these calculations are not including the increase in income they would probably make over time, or the amount they could gain if they continually invested that money resulting in a much higher return!

As George Clason wrote “Wealth, like a tree, grows from a tiny seed.” If you faithfully water your assets by consistently paying yourself first, before you know it, the money you make will literally grow on your money tree. Although this money tree may not be as much as Powerball winnings you will be satisfied knowing that you were the one who worked hard to grow it.

If you’ve got a great idea or suggestion of what you would like us to blog about? Please send your inquiries to stashadvisor@gmail.com or comment below. We are all about bringing you the most value!

This blog post is provided for discussion purposes, and is not intended as professional financial advice. It’s intent is not to be used as the sole basis for your investment or tax planning decisions. To get more information please speak with a financial planner. Under no circumstances does this information represent a recommendation to buy or sell securities.

 

The Importance of Investing

Investing is something that not many people take part in because there is so much mystery surrounding the topic. However, the more information someone gets and the earlier they start, the better off they will be when they do invest.

What is Investing?

At a very basic level, investing is the process of putting your money into something that you believe will return your investment with more money. Based on how successful, and/or valuable the item you invested in becomes, the money you invested will also grow in proportional value.

Why Should you Invest?

There are many reasons to invest your money. The most important reason is because it’s a great way to build your wealth. If you do your research on an investment, and choose wisely, you are making your money work for you around the clock without you having to lift a finger. If you do this well, and often enough, you can get to the point where you don’t have to work anymore. That isn’t all, it will also protect you against the inevitable inflation that will happen to the price of items as time goes on.

Investing isn’t Gambling

I’ve heard many people say that they don’t want to invest because they believe that it is gambling, and they don’t want to lose their money. This is a common misconception. The difference between gambling and investing is that investing involves research, and if done correctly, will greatly improve your chances of bringing you a profit. Gambling on the other hand is throwing your money away in hopes of making a profit. There is no research involved. There is no effort in learning how to win a game of dice, if you did that would be cheating. You are relying on “luck” and in reality the odds are stacked against you, otherwise casinos would be a very bad business venture. In the case of investing, the odds are in your favor, if you do the right research.

Investment Types

When talking about investments, there are many different ways you can invest your money. Some people prefer to invest their money in certain types of investments. We will go over the different types of investments for you to have a starting point for your own research. This way you can find out which type of investment works for you. The different types of investments are:

Ownership Investments

This is what most people think of when it comes to investing. Ownership investment is when you own an asset, which is something the owner expects will become more valuable as time goes on. Some examples of ownership investments are:

Stocks: A stock, also known as a share or equity is an item that represents partial ownership in a company. As a result of a company’s success, their stock price will increase and become more valuable overtime which means that the purchaser can sell it in the future to increase their wealth.

Real Estate: This includes living spaces such as houses, apartments, condos etc. that you rent or resell. According to Investopedia, the house you live in does not count as an investment because it’s fulfilling a basic need.

Precious objects: Valuable metals such as gold, paintings by a famous artist, and hopefully someday Pokemon cards are considered precious objects. These are considered investments if you plan on selling them in the future for profit.

Business: A business that you own is an ownership investment because you put time, effort, and money into it. Your business can pay you back exponentially the more successful it becomes.

Lending Investments

For Lending investments, think of yourself as a bank, your offer your money and whoever borrowed your money is indebted to you and will pay you back with interest. These aren’t considered very risky investments because it is not likely that you won’t be paid back, but at the same time you will not make a lot of money from lending investments.

Bonds: Bond is a general word for any investment where you loan money to an entity like a business or government, and they pay you back over a period of time with a fixed interest rate.

Cash Equivalent

According to Investopedia, cash equivalent investments are investments that are considered “as good as cash” because they can easily be converted back into money.

Money Market Funds:This type of investment gives back low returns, and is much more liquid than other types of investments because you can write checks from a money market account. Think of a savings account when you think about a money market fund.

Investing is a great way to increase your wealth. With all the resources and types of investments out there for you, it would be foolish not to take advantage of an opportunity to increase your wealth. In the future, we will go more in depth about investment options that are available to you. But no matter what, remember to start as soon as possible, and to stay informed!

 

Got a great idea or suggestion of what you would like us to blog about? Please send your inquiries to stashadvisor@gmail.com. We are all about bringing you the most value!

This blog post is provided for discussion purposes, and is not intended as professional financial advice. It’s intent is not to be used as the sole basis for your investment or tax planning decisions. To get more information please speak with a financial planner. Under no circumstances does this information represent a recommendation to buy or sell securities.