Best Investment Returns

Series Summary

Personal finance is the application of financial principles to the monetary decisions of an individual or family unit. It addresses the ways in which individuals or families obtain, budget, save and spend monetary resources over time, while taking various financial risks and future life events into account. Components of personal finance might include checking and savings accounts, credit cards and consumer loans, investments in the stock market, retirement plans, social security benefits, insurance policies and income tax management. In this free video series on investing, a financial consultant explains how to manage money and investment. Learn about mutual funds, day trading and money market accounts. Get tips and information on split day trading, stock splits and investing in CDs. Working in the stock market can be a great way to save money for retirement or make lots of cash, so get information on investing from these free videos.

Video Transcript

"My name is John Pinelli and today we're going to be talking about best investment returns. Oftentimes when people are looking for investments that can provide them with the best returns, they're looking at things like stocks, bonds, CDs, mutual funds. They want something that's going to provide them the best return on their dollar. One thing to consider when looking in to high return investments, is that they're going to carry a much higher risk than lower return investments. So if you're able to sort of stomach the high volatility and movement of some of these higher risk securities, then you are able to invest in something that's going to be a higher return as well. So, typically stocks will provide you higher returns than say bonds or CDs. Bonds or CDs will typically just barely beat inflation, but oftentimes they're secured, very secure. In fact if you're looking at CDs, they're insured by the FDIC. Going back to stocks, stocks historically have provided the highest rate of return, about ten percent annually. In recent years, it hasn't been the case with the declining markets but if you look at an historical average, stocks have historically been better then things like CDs and money market and bonds. So that's always something to consider. Mutual funds also tend to be slightly risk than just individual stocks. But the returns tend to be a little bit lower too and then you get in to management fees and things like that. So in conclusion, something to consider when investing and looking for high returns is how much risk can you individually handle. This has been John Pinelli, financial representative."