When you are making investments you should be sure to set your goals because all the different types of investments have different goals so you should ask yourself.
- How much can you invest? Maybe it be some money that you already have or also some money that you can save each month.
- How fast you need your money? Sometimes you are making some investments for a trip you are about to make in a few months so you need something where you can cash your money fast with a low risk, but when you are thinking about retirement the investment option is very different.
Different types of investment:
- Traditional IRA: The risk is according to the holder.
- Roth IRA: ALso the risk is variable.
- Money Market Funds: It has a low risk but also the interest is usually not very high, it might be a good option for short term investmens.
- Bonds: As the money market funds the risk is low and a similar low interest rate.
- Index Funds: Here the risk is variable and also the interest, it the depends on the funds.
- Stocks: Medium to high risk, I recommend this one for long term investments and never for a short period because the risk is higher in short periods of time.
- Mutual Funds: The risk and interest also depends on the funds.
- Gold Investing: This is also very popular today, there are several companies that can help you finding the best option to buy precious metals.
- Forex: Here the risk is a little high but you can make big profits in short periods of time.