saving and investment portfolio

Saving account $20,000

• -Interest-bearing account
• -average interest earned is 0.06%
• -virtually risk free
• -considered your emergency fund
• -can set up through any bank
• -i chose $20,000 because its a good start up fund.

certificate of deposits $10,000

• -deposited money for a specific amount of time
• -average interest earned 0.51%
• -on average there is no risk
• -similar to a saving account
• -can be set up through a bank or credit union
• -i chose $10,000 because its half of my savings account
• -safest investment that can be made

mutual fund $20,000

• -program funded by shareholders that trade in diversified holdings
• -interest rate earned is 0.5%
• -moderately risky
• -pool of money full of big investors
• -i chose $20,000 because there is a high interest rate
• -you can own these through the bank
• -invest in a variety of bonds and stocks

stocks $25,000

• -an investment that represents shares of ownership of earnings in a corporation
• -12% interest rate returned
• -More money but very risky
• -i chose $25,000 because stocks give the best outcome
• -part of a well done investment portfolio
• -security of creditors
• -you can invest in stocks with assistance

corporate bonds $25,000

• -to lend money to a business on the promise that debt will be paid back with interest
• -less riskier than stocks
• -4% interest yield return
• -i chose $25,000 because bonds are diversified
• -you can invest in these at central banks
• -allows investors to tailor a bond portfolio

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• diversification is the most important component of reaching long term financial goals while minimizing risk.

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• we must always stay up to date on our savings plans with the world changing day by day. we can't be stuck in the past or we will end up loosing our money. Having variety is very important. bottom line we have to start investing earlier in our lives.