12/12/2021
On the final day of Wealthmas...
We're finishing off on investments:
1. Cash (Or equivalents): Is your
money in cash form is safe, completely liquid, often guaranteed, but earns little or no interest income. It’s typically a “parking spot” for funds when you plan to use those funds within the next year or so.
2. Bonds – Income Producing Asset: A bond is a type of investment issued to the public, by
governments or companies, to raise money in the form of loan that will be repaid in the future and are generally considered to be a conservative investment, where the issuer (the government or company) is obligated to repay
your principal at a specified future time.
3. Preferred Shares – Income Producing Asset: Preferred shares are only issued by companies, and ownership carries with it a higher risk because the issuing company is required to pay their bond obligations before their preferred share payments in the case of liquidation.
4. Equities— Canadian, U.S. And International: By purchasing a stock, (equity) in a company you are able to both participate in the growth of the company’s stock value and dividend payouts, if the company elects to pay out profits as dividends to stockholders.
