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Research and briefly summarize the following savings options. In your summary, make sure you mention the level of risk associated with each option and recent returns on investment. Savings account Certificates of deposit Stocks Bonds Mutual funds Employer sponsored savings plan Physical assets Commodities

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User Emelyn
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Answer:

Savings account: A savings account is a bank account that earns interest on the money deposited. The level of risk is low, and the returns are also low, usually below the rate of inflation.

Certificates of deposit: Certificates of deposit (CDs) are a type of savings account that has a fixed term and interest rate. The level of risk is low, and the returns are higher than savings accounts, but still low compared to other options.

Stocks: Stocks are a type of investment that represents ownership in a company. The level of risk is high, and the returns are also high, but can be volatile.

Bonds: Bonds are a type of investment where the investor loans money to a company or government in exchange for regular interest payments. The level of risk is low to moderate, and the returns are moderate.

Mutual funds: Mutual funds are a type of investment that pools money from multiple investors to buy a portfolio of stocks, bonds, or other securities. The level of risk and returns depend on the specific mutual fund.

Employer sponsored savings plan: Employer-sponsored savings plans, such as 401(k)s, are retirement savings accounts that allow employees to contribute pre-tax income. The level of risk and returns depend on the specific investment options offered.

Physical assets: Physical assets, such as real estate or gold, are tangible items that can be bought and sold. The level of risk and returns depend on the specific asset.

Commodities: Commodities, such as oil or agricultural products, are raw materials that can be bought and sold. The level of risk and returns depend on the specific commodity.

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User Emili
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