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