If you're like many investors, you may have one or more of the following investment goals in mind when choosing investment strategies:
Protect your money
Suppose you've saved enough for a down payment on a home and you want to be sure the money will be there when you need it. The best strategy is to park your money in the safest possible place (such as cash equivalents) while you look for the right home to buy. You're protecting it.
Earn income
Suppose you want a regular, predictable stream of income to go along with the income from your day job. Investing in bonds or bond mutual funds may be a smart strategy, as they are designed to generate regular income from the interest payments.
Grow your money
Suppose you'd like to pay for as much of your new grandchild's college education as you can. One strategy may be to become a part-owner in some companies (through a stock mutual fund). If the companies do well and shares of their stock increase in value over time, you could sell your shares for a profit and use it for tuition.
AARP Financial Inc. does not provide tax advice. Please consult a tax advisor for information pertaining to your particular situation.
The information and content provided herein is general in nature and is for informational purposes only. It is not intended, and should not be construed, as a specific recommendation, or legal, tax or investment advice, or a legal opinion. Individuals should contact their own professional tax or investment advisors or other professionals to help answer questions about specific situations or needs prior to taking any action plan based on this information.
The Financial Advisors are investment adviser representatives of AARP Financial Inc., an investment adviser.