Show Notes:

Stocks – owns a part of the company

Bond – owns the debt of a company or government

Real Estate – owing rental property either personally or in a REIT

Commodities – Gold, Silver, Oil, etc. Typically these are in the form of certificates, but could be in the precious metal

Employer sponsored accounts – 401(k), 403(b), 457(b) – most people have a 401(k) as the other two are for non-profit or other employers that aren’t companies.

Importance of employer sponsored matching accounts and why you don’t want to lose free money

These accounts have yearly maxes that you can legally invest in them

Traditional IRA is pre-tax and a Roth IRA is post-tax

IRA has a much lower max you can legally invest in them per year than an employer sponsored plan

Find out the importance of investing money both pre-tax and post-tax

Mutual funds are a collection of different types of assets (typically stocks / bonds)

Employer sponsored accounts and IRA’s invest in one or more mutual funds

Mutual funds that have a date at the end of them is a self-balancing fund that changes the risk profile over time to safe guard more of your money

Social Security (US only) will add to your retirement assuming it is still around when you retire – I don’t count on it for my future and you shouldn’t either unless you are close to retirement age right now.

Angel investing is a way to invest in stocks before a company goes public – they are very high risk

Angel investing only pays you if the company is bought out or is taken public

Cryptocurrency is a way to invest in the decentralization of money – they are very high risk

Cryptocurrency is based on a very real technology that will change the world (blockchain) but the jury is out on cryptocurrency

Learn why cryptocurrency is really needed in countries where inflation goes nuts (think 100 – 1,000,000% type of inflation)

Treat angel investing and cryptocurrency with money that you would be 100% ok with taking that same money in cash and burning it in a fire.