What Are Different Types of Investment Accounts?
“This is financial adviser, Patrick Munro, talking about What Are Different Types of Investment Accounts? Well, investment accounts are designed around the concept of risk, and if you look at a pyramid as an example, the safest platform is at the bottom. And that would be cash. There’s no risk in having cash. However, cash does not pay a high rate of return. So make sure that you have cash in the form of an emergency account to fall back on. That is your bedrock of investment accounts. From there, you want to build up to securities, mutual funds, stocks, bonds, things of that nature. And, of course, real estate is right there, as well. And, you want to have a home to live in and if you are enamored with real estate and you understand it, you can start to buy more real estate, as well. This isn’t a liquid investment, but it’s an investment account all the same. And it carries a high rate of return over a long period of time. These are some of the different types of investment accounts,
