What do all those terms mean?
If you are part of a work place retirement program, chances are you have fund choices in your portfolio. Once a year you are given the option to pick the funds that you want to invest, but seldom does anyone explain what those options mean.Let's start with stock: this is true ownership in a company. If the company does well, you do well. When a company gives you the ability to purchase shares in your retirement account, the theory is that if you are an owner, you will work harder to gain wealth for yourself and therefore the company. Mutual funds and ETF's are also generally offered. They can be less risky than a single stock depending upon the fund or the funds you choose. MF's and ETF's can be all stock, all bonds, or a blend. They can also be a good way to invest not only in the USA but in global stocks and bonds. MF's and ETF's can be higher risk if you are choosing MF's and ETF's that are primary high yield bonds or only emerging countries or companies. To see what companies and or countries are inside a fund, you need to read (or at least look at) the prospectus that outlines holdings, risks, and fees.For more information on the stock market, please visit our website and see what events are coming up. We are currently offering seminars on the fundamentals of investing.
Investment advisory services offered through Financial Investment Team, Inc., an investment advisor registered with the U.S. SEC. Securities offered through Peak Brokerage Services, LLC. Member FINRA/SIPC. Financial Investment Team, Inc. is a separate and independent entity from Peak Brokerage Services, LLC.
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