Author: Angela Baraniuk

A riskier form of equity investment.

Examples include: Options, High Yield Bonds, Precious Metals or Gems, Aggressive Growth Stocks, Emerging Markets Mutual Funds, Collectibles, Antiques, Stamps, Small Cap Stocks, Real Estate and Futures

These assets can grow in value but may not pay dividends. Examples include: Growth Stocks, Growth Mutual Funds, Preferred and Utility Stocks, Blue-Chip or Quality Stocks, Preferred Shares and Common Shares.

These generally offer higher returns than cash and savings accounts. They provide a source of regular investment income, which remains the same over time (“fixed”). Examples include: Strip Bonds, Commercial Paper, Bond Mutual Funds, Bankers’ Acceptance, Short-Term IOUs Issued by Corporations, Corporate Bonds & Debentures, Canada Savings Bonds, Government Bonds and Corporate Bonds.

Investment Strategies

To build enough wealth to achieve your financial goals, you need to invest as much of your earnings as possible. The kind of investments you choose depends on: (1) how quickly you want your money to grow (2) and how much risk you can take
In the financial world, RISK means the possibility of losing money on an investment. Usually the higher the risk of losing money, the higher the expected return.

These are assets that can be made accessible at any time (“liquid”) This is generally the safest category of investment, but it produces the lowest returns. Examples include: Current and Savings Accounts, Money Market Funds, Treasury Bills and Insurance.