EricM wrote:
1. government something, like treasury bonds and gold and E36 M3.
Bonds tend to be a conservative investment - they can sometimes appreciate or depreciate, but mostly are valuable as an IOU that usually gets paid back with interest.
Gold is a totally different ball game - it's a commodities market item. There's a lot of paranoid types who talk as if gold has something that makes it intrinsically valuable. Reality check - its main use is luxury goods and fashion articles, and if that doesn't scare you away, you probably shouldn't be in the commodities market.
2. real estate, really? people still do this?
If you want to be a landlord and rent things out - people still need a place to live, and for a speculator, it's best to buy low and sell high. We've had some prime buying time lately for those with the money to play the game. But definitely a hands on sort of investment and not something you can passively put in an account and watch it grow.
I also lump Domain name buying in this one.
Definitely a speculative investment whose day has come and gone.
3. Micro loans. Becoming part of a loaning group that makes small loans.
I have no experience with this one, but it sounds a bit risky. Like real estate, it seems to be something that you need an active role in.
4. Invest "in yourself' doing side work, starting a company, etc (so I have to trade more of my time on earth for money)
It does need time, but the good thing is this is one investment where you don't always even need to risk money. For example, I've written two books now - having them out means I can collect royalties as passive income for a while until they stop selling, and I didn't have to invest much money, just the time to write them.
Really? that's it? the stock market, or one of those four things? Tell me there is more than that.
There's the derivatives market, such as trading stock items. Generally it's for people who find the stock market too easy to understand, safe, predictable, and boring.
The commodity futures market is similarly crazy - good if you're making a product or buying a product and want to lock in a price, totally bananas for anybody else. The way they're always traded on margin makes this place extra scary if you don't know what you're doing.
A somewhat less crazy product is the mutual fund. It's generally based on stocks, but has an expert in charge picking them, so all you have to do is figure out if the people running it have any brains instead of having to pick out the stocks. They can also trade in some other types of assets - exactly what will depend on the fund.
The REIT is a relative of the mutual fund - it's pretty much a mutual fund that buys and manages real estate.
And, if nothing else, where is a safe place to store money? Banks have proven they can and will go under and keep your money. They can and will foreclose on your property. Where can the money be put safely?
Money market items are a fairly low risk, not terribly high reward type of investment. It's similar to the bond market but more short term. There are even a couple of banks that offer money market accounts insured under FDIC terms for up to $100,000.
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