INVESTMENT OPPORTUNITIES

Risk and Return Higher risk usually means a chance at a higher return. Also means that you could lose more money. Lower risk usually means lower return.

Corporate Investing Stocks Bond—A debt investment. Essentially, it’s like LOANING money to a corporation or government. They “borrow” your money for a fixed amount of time at a fixed interest rate. LOW RISK

Money Market Funds Savings accounts that yield a percentage of return based on interest rates and investments made by the money market manager. Low risk, low interest, low yield Example: Treasury Bills (T-Bills) Mature in 1 year or less. usually issued in denominations of $1,000, $5,000, $10,000, $25,000, $50,000, $100,000 and $1 million. Other positives are that T-bills (and all Treasuries) are considered to be the safest investments in the world because the U.S. government backs them

Mutual Funds Mutual Funds Pool of funds from different investors. May invest in stocks, bonds, money market, etc. in an effort to increase capital gains. Annual maintenance fees Some have a load—sales fee paid for investing (typically 5 or 6%) Purchase through brokerage firms