108). As mentioned above, mutual funds sometimes invest in bonds. Bonds are
different from stocks in that the investor in bonds does not own a share of
the company, instead the company or institution is borrowing money from the
investor with the promise to pay it back at a certain time with
accumulated, or paid out dividends. Bonds are not normally as volatile as
stocks, and therefore this investment does not normally have the capability
of providing as high a return as stocks do.
One sure method of not losing any money in either the stock or the
bond market is to invest in other vehicles, such as real estate. The
problem with that idea is what took place in 2008 (and continues today).
Many investors in real estate watched as the value of their properties fell
by large percentages as the real estate boom became a bust. Even
institutional investors are looking for other investments. Some
institutional managers are looking at "global real estate and
commodities...Treasury Inflation Protected Securities (TIPS) and
alternative investments like market-neutral funds" (Segal, 2007, pg. 213).
Novices and experts alike oftentimes find themselves watching their
investments lose value instead of gain. In the long run however the stock
market has provided a return much better than that offered by money markets
or bonds. The stock market is not for the faint of heart, but for those
who brave its fickle hearth, rewards can be quite fulfilling.

Analyzing any type of investment can be done if the investor knows
where to go to gather the information. There are numerous online sites
that now provide up to the minute investment advice and information as well
as information on brokers and the firms they work for. If an investor is
interested in working with a broker who can also provide that information,
as well as advice on whether to purchase or sell specific stocks or bonds,
then research can be done as to the...

The investor must understand that the broker gets a commission on each sale and purchase and that the broker may not
have the investor's best interest in mind when doing so. It is important
to find a broker the investor can trust.
Some of the keys to success are to remember that stocks are volatile
and investors should never invest money they cannot afford to lose.
Picking good investments takes time and research and if the investment is
made into a strong, viable company, then it should provide a nice return
through the years. Understanding the risks and rewards of investing is a
key to the investor's success. Success, however, is in the eye of the
beholder. Americans have one of the most comfortable lifestyles on the
planet and are considered as rich by a majority of the global community.
On the other hand "many Americans would consider a family wealthy if it
enjoyed either a large net worth today, something on the order of $3
million, or an income big enough to pay for a luxurious lifestyle -- with
enough left over to save for a comfortable retirement" (Tully, 2008, pg.
80).

Whether the investor is looking to secure a comfortable retirement or
become one of the 'truly wealthy' both objectives can be achieved by
investing.

References

Birger, J.; (2008) What should you do now?, Fortune, Vol. 158, No. 7, pp.
47, 48, 50, 52
La Monica, P.R.; (2008) These stocks are rolling, Fortune, Vol. 158, No. 4,
pp. 35 - 36
Lim, P.J.; (2008) Global cooling, Money, Vol. 37, No. 12, pp. 108 - 110,
112
Segal, J.; (2007) Alternative retirement plans, Institutional Investor
(Americas edition) Vol. 41, No. 9, pg. 213
Strahler, S.R.; (2008) Credit mess mires Nuveen's funds, Crain's Chicago
Business, Vol. 31, No, 41, pp. 1, 11
Tully, S.; (2008) Look who pays for the bailout, Fortune, Vol. 158, No. 9,
pp. 80 - 84