What would I do with $25,000?

       If I had $25,000 I would save most of it in investments to try an increase the value of that money over time. My investment would be putting the money into a Certificate of Deposit (Low risk), investing in a bond (moderate risk), or investing in a mutual fund (moderate risk). Since two of the three investments are moderate-risk, the plan as whole would be at moderate risk. The benefit expected vary between each of the options above; for example, a bond’s benefit would be rate of return, the person loans the company money and in return they’re given a bond, over time that money is paid back to the person hopefully in a larger amount. Investing in a mutual fund would the similar idea as a bond, in the end, you’re hoping you will profit from the money you invested in those companies. As for a CD, the money is safe in a bank and has a better chance of making money rather than a traditional savings account.


       Now, I could put all the money into one investment but that wouldn't be wise; it would be a much wiser choice to divide the $25,000 between all three investments rather one. Let’s say you were to put all your money into a CD and you want to take money out eventually, it’s not a very easy process. Also, CD’s don’t guarantee you’ll make a lot of money of them, you’re not taking very much of a risk by just putting it all on there. On the other hand, putting all your money into a mutual fund is not smart either, if the companies aren’t doing too well or go bankrupt your money goes also. It’s better to put a little in each, save some money in a CD and then invest the rest in bonds and a mutual fund and hope the companies do well. Your goal is to increase your money or hope the value of the money increases but you also need to keep in mind the risks for the investment you chose.