Hello everyone!
Today we're going to take a look at Mutual Funds and how they work. Don't worry if you're not sure about what Mutual Funds really are, you're not alone. Hopefully we can help simplify and introduce the core concepts of Mutual Fund investing.
In the financial world things can seem confusing and hard to understand for those of us who have had little to no experience in this area before. Over the last 20 years investing in mutual funds has become very popular in American households; some estimates say around 80 million people are now a part of at least one mutual fund. Simply put, a mutual fund is a collection of money pooled together from sometimes thousands of investors into one account. Once the money has been "gathered together" so to speak, a mutual fund manager then begins to invest in stocks, bonds, money market securities, and a variety of other options in order to make money or "capital gains" that then benefit the investors.
Mutual Funds are a big part of the current investment market in the U.S. and play an important role in our economy. If you're like me, and find yourself interested in learning more about how to invest in Mutual Funds be sure to check out Mutualfundsbrokerage.com for more info.
That's it for now, be sure to check back next week for more info on how to invest safely with Seriously Safe Cash.
Monday, June 7, 2010
Welcome to Seriously Safe Cash everyone!
Today we're going to look at one of the most popular financial instruments available to investors right now - Annuities.
To put it simply, an annuity is an insurance policy that pays out income over time. After you make an investment, the annuity then makes payments back to you or the beneficiary for a set period of time. Payments may come annually, monthly, or all at once. Annuities are quite popular among investors who wish to receive a steady income after retirement.
The United States Security and Exchange Commission define an annuity as a contract between the purchaser and an insurance company, under which payments or a lump sum is made. The insurance company in return agrees to make periodic payments to the purchaser or beneficiary at some point in the future.
The two most common types of annuities are "fixed" and "variable." Fixed annuity means that the insurance company guarantees that a minimum rate of interest will be earned over the amount of time in which your account is growing. Periodic payments are guaranteed by the insurance company of a predetermined amount per dollar in your account.
With a variable annuity you may be able to use your purchase payments for certain investment options, typically mutual funds. The rate of return on purchase payments and the amount of the periodic payments you or your beneficiary will eventually receive could vary depending on the performance of the investment options you have selected.
While annuities can be great for some they can come with high fees and expenses that may not be the best option for some investors. The best bet is to thoroughly educate yourself on what are your option and speak with a financial planner before making any major decisions.
Check back with us in a few days for another informative update on Seriously Safe Cash.
Today we're going to look at one of the most popular financial instruments available to investors right now - Annuities.
To put it simply, an annuity is an insurance policy that pays out income over time. After you make an investment, the annuity then makes payments back to you or the beneficiary for a set period of time. Payments may come annually, monthly, or all at once. Annuities are quite popular among investors who wish to receive a steady income after retirement.
The United States Security and Exchange Commission define an annuity as a contract between the purchaser and an insurance company, under which payments or a lump sum is made. The insurance company in return agrees to make periodic payments to the purchaser or beneficiary at some point in the future.
The two most common types of annuities are "fixed" and "variable." Fixed annuity means that the insurance company guarantees that a minimum rate of interest will be earned over the amount of time in which your account is growing. Periodic payments are guaranteed by the insurance company of a predetermined amount per dollar in your account.
With a variable annuity you may be able to use your purchase payments for certain investment options, typically mutual funds. The rate of return on purchase payments and the amount of the periodic payments you or your beneficiary will eventually receive could vary depending on the performance of the investment options you have selected.
While annuities can be great for some they can come with high fees and expenses that may not be the best option for some investors. The best bet is to thoroughly educate yourself on what are your option and speak with a financial planner before making any major decisions.
Check back with us in a few days for another informative update on Seriously Safe Cash.
Seriously Safe Cash no. 1
We are creating a financial blog that aims to inform and educate investors about the financial instruments available in today's market. When it comes to your money we know that safety is often priority no. 1 for many new investors. Hopefully our informative Financial Series can help you stay on top of recent events and understand how they may affect you.
Welcome aboard!
Welcome aboard!
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