| If you are new to investing, or even if you've been | | | | example, are a riskier investment than bonds. But |
| playing the market for a while, investment options can | | | | again, stocks tend to bring in a much higher return. On |
| be overwhelming. Stocks, bonds, mutual funds. How do | | | | the other hand, there is also the chance that your |
| you pick the best place to invest your money? That's | | | | stock will dip and you may suffer a great loss. That's |
| quite a decision!Here are some tips that can help you | | | | all part of the game.If you're looking for a low-risk, |
| get started:If you are planning for a long-term | | | | surefire investment strategy, U.S. Treasury bonds may |
| investment, it may be wisest to go with stocks. History | | | | be the way to go. The government has a lot of power |
| shows that stocks outperform other investing options | | | | over these bonds. Because of this, investing in these |
| over the long term. For example, from 1926 to 2004, | | | | bonds is generally considered risk-free. Keep in mind, |
| the stock market had an average annual gain of | | | | however, that bonds don't do so well when interest |
| 10.4%, compared with only 5.4% for bonds and even | | | | rates rise. Conversely, when interest rates go down, |
| less for other forms of investing.That said, stocks may | | | | bond prices rise. This is particularly true with long-term |
| not be such a good option for short-term investing. | | | | bonds.To be safe, the best advice is to diversify your |
| They tend to be more risky and can undergo severe | | | | portfolio. If you practice investing in a number of |
| losses. Unless you're planning to keep your money | | | | different areas, you are least likely to lose it all. |
| there for a long time, you might not want to weather | | | | (Remember the Enron scandal? Don't make that |
| the stress of the stock market's ups and downs. | | | | mistake!) Some investments will go up, others will go |
| Overall, a company's earnings are going to be the | | | | down. But at least you can be pretty sure you won't |
| biggest player in a stock's fluctuation.If you're willing to | | | | lose it all. Chances are, with a little research, some |
| take a little bit of risk with your investing-or a lot-you | | | | self-education, and careful investing, you'll build your |
| probably will notice a bigger payoff. Stocks, for | | | | savings substantially. Happy investing! |