| If you have a large sum of money, the worst | | | | bank.) On the consumer side, they work about |
| thing you can do is let it sit around. If you | | | | the same way that CDs do. However, with CDs |
| keep your money in a safe-deposit box, or in | | | | you are able to withdraw early and be subject |
| another equally stagnant place, it will just | | | | to a hefty fee. With bonds, you are stuck |
| sit there. It is best to get it out and put | | | | with the coupon no matter how much you need |
| it in a place where it can actually work for | | | | the money. This is another great way to |
| you, produce returns and therefore increase | | | | increase your money over time with the help |
| your total wealth. Pasco, Washington banks | | | | of a Pasco, WA bank. It is fairly risk-free, |
| offer some of these options. So if you live | | | | and has a larger gain than a savings account. |
| in Pasco, WA and you have that sort of money | | | | |
| available to you, why not investigate some of | | | | Everything mentioned so far is a fairly |
| these options and find a way to start earning | | | | long-term investment with relatively low |
| income just by investing your money in the | | | | returns. What if you are ready to be risky, |
| right place. | | | | and make an investment that could possibly |
| | | | have great returns (or great losses)? If this |
| You can always open a savings account, with a | | | | is the case, you might consider investing |
| fairly low return (but which is better than | | | | your money in the stock market. You can find |
| no return at all) but which gives you | | | | a local stockbroker, and start to discuss |
| complete access to your money whenever you | | | | your situation with him or her. You will hire |
| might need it. Many of the larger banks can | | | | people who are supposed to be experts at |
| also help you invest in mutual funds. | | | | dealing with the stock market, and know |
| | | | exactly what to invest in and what to avoid. |
| Another popular option is a CD, or | | | | The best way to find a stockbroker is to get |
| certificate of deposit. With a CD, you | | | | a recommendation from someone you know who |
| deposit a certain amount of money, which will | | | | has used this person to good effect and can |
| be locked away and non-accessible for a | | | | assure you they are reputable. And it's also |
| pre-determined period of time. Your CD can | | | | a good idea to use a broker affiliated with |
| have a 2-year term, 5-year term or even | | | | some large brokerage firm that everyone has |
| 10-year term. Usually, the longer the term, | | | | heard of - such as Fidelity, or Morgan |
| the higher the rate of interest you can earn. | | | | Stanley, UBS, etc. By entrusting your money |
| So you must consider whether you may need | | | | to a stockbroker, you have very good chances |
| your money sooner than, say, 10 years. | | | | of being able to make a large return. (You |
| Sometimes people "ladder" their investments | | | | also stand a very good chance of losing |
| and break up the amount invested into smaller | | | | money, too, plus stockbrokers charge you a |
| sums investing one amount in a 2 year CD, | | | | fee everytime they place an investment for |
| another for 5 years, and then when they | | | | you.) You don't have the security of a Pasco |
| mature rolling them over for another 2 or 5 | | | | bank, but you have the possibility of bigger |
| years, if they don't need the money at that | | | | and quicker returns. But investing in the |
| time. The interest will have accumulated, and | | | | stock market is risky business. And if you |
| you will have much more money than you | | | | want to preserve captial and have a sure |
| started with. CD's are beneficial in several | | | | return, you might prefer the much safer |
| ways. Firstly, the interest rate is much | | | | option of a bank instrument in which to |
| higher than any other savings account. | | | | invest. |
| Secondly, you won't be tempted to withdraw it | | | | |
| early to pay for some sort of personal treat. | | | | Hopefully, one of these options will be |
| | | | useful to you. You will surely want to |
| Another option available to you is to place | | | | consider them, if you have a large sum of |
| your money in savings bonds. These come in | | | | money sitting around not earning interest. |
| the form of small coupons that you can buy. | | | | CDs or bonds with a Pasco, Washington bank |
| They mature over time, and on the maturity | | | | will earn you the money to ensure financial |
| date you are permitted to exchange them for | | | | security for yourself in later years, or even |
| the "face value" of the bond, which you | | | | for your children. It's one of the main |
| bought originally at a discount. For example, | | | | principles of finance that you should always |
| say you can buy a 10-year $500 bond for $380 | | | | have your money work for you rather than the |
| and when it matures you exchange your coupon | | | | other way around. So consult a local Pasco, |
| for $500. (Of course, the discount you pay | | | | Washington bank and discuss your options |
| and amount you get back at date of maturity | | | | today. |
| is determined by the interest rate set by the | | | | |