Joe Soto here! Do you have a 401k or own stocks or bonds? And you’re wondering where to invest it in these uncertain times?

I want to share the fundamentals principles to some of the basic investment vehicles that are out there. Oftentimes people invest money in vehicles, and don't understand what it is that they own. 

Stocks, Bonds, ETF, and Mutual Funds cover a big chunk of the Market. 

A Stock represents equity, ownership in a company. Sometimes institutions buy huge blocks of Stocks in companies, and become decision makers in the company because they're a large shareholder.

Bonds tend are considered much safer investments than stocks. If the company doesn't go bankrupt you get your principle back at the end of the term and usually pay you interest payments. If the company ever became broke, and liquidate assets, you may get some of your money back because you’re a creditor.

Mutual Funds are designed to help individual investors avoid disaster, it allows investors not to make speculative decisions because they’re more diversified. A challenge is it's gotten convoluted because of its cost and fees.

Exchange Traded Funds (ETF): Like Mutual Funds, you don't necessarily own the individual Stocks or Bonds; you own a share of the fund. ETF follows the exchange, and is also more tax efficient.

Do's & don'ts:
1. Don't allow the complexity to not allow you to invest. The Stocks Market from inception has yielded an Average ROR/ROI between 9%-10%.
 
2. Don't assume that big name firms have the best vehicles. 

3. Work with the fiduciary financial advisor, because they’re legally obliged to have your best interest financially.

If you feel confused about what you're doing, create a custom written Financial Plan. I recommend that you demand this from the professional that you're working with.

FOR EDUCATIONAL PURPOSES ONLY

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