Jan 2, 2013

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Finding Investments For Dummies

What Do Good Investments for Dummies Consist of?

investing for dummiesThe primary factors required in good investments for dummies are those of low maintenance and low risk. The two terms are often synonymous but not always. It is important to adopt the fire-and-forget principle in these kinds of investments. In other words, the investor needs to purchase the chosen investment vehicle and then not put any more time into thinking about it or watching it.

This pretty much eliminates numerous investment categories such as options, futures, and junk bonds in toto. What remains are a broad spectrum of more conservative investments. Here is a brief overview of some of them.

Conservative Investments for Dummies

DRIPs are good investments for dummies. These are blue chip stocks that pay dividends on a regular basis and offer automatic Dividend Reinvestment Programs to their shareholders. Whenever the company issues a dividend payment, stockholders have the option of taking the payment in the form of additional stock rather than cash. This allows the investment to grow over the years without any effort on the part of the investor.
• Mutual funds are the classic low risk, low intensity investment for individuals. The investor turns his funds over to a financial professional and spends the next 20 years tossing quarterly statements into a shoebox. Eventually, the investor makes money, and he still retains some control over his money in regard to allocating the funds to a different member of the fund family, if he so desires.
• Municipal bonds are another traditional no-brainer investment. Their return is tax-free so it is possible to enjoy a guaranteed return and not have to deal with a lot of extra tax calculations in April.

Over time, most investments for dummies  tend to outperform the more popular vehicles that promise a lot and end up delivering less than expected as the years go by.

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