Whats the difference between stocks and bonds and which is better?
If you need to ask this question you DEFINITELY need to spend some time reading up about them both before you invest ANY money in either of them. The decision to purchase one or the other, or both, depends entirely on your age, your income, your savings balance, and your goals in life, both now and in retirement. There are RISKs in every kind of investment. You can lose ALL of your investment with stocks, and you can tie up your money in bonds while other investment options could have earned you more money, or you could even buy bonds that are no safer than stocks; not to mention that how you buy, hold and sell both of these will influence your taxes also. Even having a good financial advisor is no guarantee that you will earn money with your investments, so before you do anything, start reading the basics about these, so that you will have some level of understanding before you do anything. Ask friends who have invested what they think. Be SURE to read about diversification of your in