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