Investing in the Future

Investing in My Future
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FIN100: Principles of Finance
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Type the Date Here (ex. February 10, 2020)
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Introduction
In this era of technology and the internet, there is certainly no shortage of information regarding investment opportunities. However, figuring out the best investment opportunity is challenging for both individuals and firms. Regardless, it is important to invest money since it is the best way of securing one’s future. This paper examines how I will invest in my future through bonds, mutual funds, and stocks. The paper also addresses challenges and benefits related to these investment opportunities.
Three (3) Ways I will Invest in My Future
Mutual funds, stocks, and bonds present the best ways of investing in my future. Mutual funds create a pool of money, invest the money collectively, and assign shares to people based on their contribution. On the other hand, investing in stocks involves purchasing shares in companies when prices are low and selling the shares when prices are high. Lastly, bonds are similar to stocks but they offer fewer returns because they are less risky. Unlike stocks, bonds are only issued by the treasury department and other large corporations. Similarly, bondholders are usually paid first before stockholders if a company goes bankrupt (McCann, 2020). Before investing, an individual must review the viability of the bonds, stocks, and mutual funds because the ultimate aim is to find good value.
My Confidence Concerning Investing in My Future
While stocks and bonds are great investment opportunities, mutual funds are the best in my view. It is easy to invest in mutual funds because they have low minimum investments and are traded only once per day at the closing net asset value (Kaur and Kaushik, 2016). This phenomenon eliminates price fluctuations and arbitrage practices that brokers use to manipulate ordinary investors. Furthermore, when in...