What would you do given the many options to invest? Would you go all out and just take a risk with the highest yield or would you play it safe with a CD. Either way you are doing an awesome job if you take the plunge and use all the investment options available now instead of all those live by the moment soon to broke people. HA HA. I want to illustrate without drawing, the different kind of options we all have to invest our hard earned dollars, unless you are one of the fortunate ones to get an inheritance aka Free money. What options you ask?
Investment Options listed below:
10,000 Invested Monthly Return:
Regular Big Bank Savings account- .25% – $2.08
Online Savings Account- .80%- $6.70
CD at Bank- 1.20%- $10.00
Mutual Fund- 2.5%- $20.80
Bond Fund – 3.5%- $29.20
Dividend Stock – 4% – $33.30
20 year Bond- 5%+ – $42.00
These are the options I have provided for you now will you take the plunge knowing how much you can possibly make above and beyond a regular savings account. Think about it 2.08 a month compared to 42 dollars a month is a big difference. If you multiply the difference by 12 between the highest yielding investment minus the regular savings account you get about $500 dollars in a year extra give or take a few dollars. Compound this amount and you are missing out on a big chunk of change that could be working for you year after year. Hard cold facts do not lie, just go to Bank of America’s website and see what they currently offer rate wise for a standard savings account.
Some of these investments pay on a quarterly time frame and others pay semi-annually. Just take the number of months in between each pay period and divide the amount by the months thus giving you the actual monthly amount. These figures are general and your results will vary depending on the initial price of the investment and the current yield you will receive at the time of purchase.
Always remember you have options above and beyond a regular savings account and if you do not feel 100% investing just do a small portion and increase it over time as you get more comfortable.
Watch your Money
Rich Uncle EL
