Investing Your Money

Karen: My company offers a 401(k) plan. Do you think I should have one?

Jimmy: Yes, definitely. I had a 401(k) account when I worked for McQ Corp, and when I started working on my own I converted it to an IRA.

Karen: I really don’t understand any of these Investment options. I talked to an investment specialist at my bank, but I left her office just as confused as when I went in.

Jimmy: Look, you want to have a Diversified portfolio of lower-risk and higher-risk investments. On the low-risk end, put money in Bonds, CDs, or a Money market account. You want To balance that out with some riskier investments that may bring a higher Return, such as Mutual funds and Stocks.

Karen: Wow, all of that just Went over my head. I don’t Know a CD from a bond.

Jimmy: It’s really simple. Your choice Ranges from a Fixed return to a Variable return, and the variable investments carry different levels of risk.

Karen: My head hurts. Are you sure I really need all of these investments?

Jimmy: Not all of them, but it would be smart to invest your money in something.

Karen: Not if I spend it all first, right?

Jimmy: Right. You know what they say: “A fool and his money are soon parted!”


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