Investments

State the difference between stocks, mutual funds, and bonds. What does risk have to do with investing? What does time have to do with investing? How do these differ from savings accounts? Three tips every person should know for investing.

The difference between stocks, mutual funds, and bonds is this: Stocks are very liquid and not stable, mutual funds are liquid and stable, and bonds are long-term investments that are both not liquid, not stable, and inflation can kill it. Investing is about risk when it comes to the amount of money you're willing to invest. You do not want to invest a large amount of money if you're going to constantly worry about how it does after investing it. Investing is about making your life easier by gaining money so you need to know your risk tolerance. You should invest in the stock market when the time is right. When I say that, I mean you need to look into the stock market every couple days and see when companies are doing well and when investing in them would make you money. These differ from savings accounts by the fact that your money isn't in a bank gaining interest and once you invest into stocks, mutual funds, or bonds your money could easily be lost without profiting anything. Three tips every person should know for investing are invest objectively, not emotionally, create an investment strategy that takes into account your personal objectives and constraints, and be selective when choosing stocks to invest in.

Here is an informational video of the importance of investing posted by Dr. Kathy Walsh from the School of Banking and Finance at the Australian School of Business
http://www.youtube.com/watch?v=gRSJG6QB03I

Here is an investment article 
http://www.fool.com/retirement/general/2011/05/18/this-investment-will-absolutely-kill-you.aspx