Making the Most of Your Money

It's never too early to start investing in your family's future. Early investment allows for greater choice and flexibility, and these days there are myriad investments available to everyone. Consolidated Credit Union, can help you determine which investments will best help you reach your long-term financial goals.

Basic Types of Investments - Cash, Debt and Equity

Cash is simply money that you have immediate access to through a bank account or other short-term, interest-bearing account like a T-bill. Because of its excellent liquidity, all investors should have a portion of their money in cash instruments, and in this day and age, most already do.

Debt instruments are the second type of investment. These involve loaning your money to the government or a financial institution for a set period of time at a fixed interest rate. Debt instruments include things like Canada Savings Bonds and GICs and usually take two to twelve years to mature, but you can take your money out earlier without any major penalty. These are low-risk investments, but offer a higher return than cash instruments.

The potential to generate the greatest return for your money lies in equity investments. Most people know this as 'the stock market', but equity investments also include many lesser-known instruments. There are no time restrictions on how long you must invest your money. There are also no guaranteed returns. But if you know what you're doing, or work with someone who does, the potential for long-term growth is much better than from either cash or debt instruments.

How to Invest

There are many different ways to invest these days: by phone, online or through a broker, who can set up an investment account that suits your needs. Once that's done, you can keep track of your investment by telephone or the internet. You can learn more about potential investment opportunities from brokerages by mail, or on one of hundreds of web sites full of financial and market information.

The important thing is that now, more than ever, it's easy for you to learn about, understand and then choose an investment plan that's right for your family.