Long term investment options

So you want to have a little bit of money after you retire, but are not quite sure what you can do with your money.You know you want to invest, but what are your long term investment options?There are a few different options to look at in terms of long term investments.There are 401K plans, certificates of deposit, and investing in stock.We can take a good look at the advantages and disadvantages of each one to help you make an educated decision about what you want to invest your money into.

401K Plans.A 401k retirement plan offered by your employer.The employer promises to pay a certain amount to their employees as part of their retirement fund.Your employer will usually provide you with a list of funds that they use for their plan and then give you the chance to decide which on you want to invest your money into; that amount will usually come out of your pay check each month.

Advantages
- Company matches.Usually with 401 K plans your place of employment will match the amount of money you are putting into your 401 K.And some even (after a number of years) will put more in.This definitely will help your retirement money go a little farther.
- Tax deferral.Just like a traditional IRA there are multiple ways you can defer taxes with 401k plans.Dividends, interest, and capital gains are not taxed until after they have been have been disbursed.
- Control.What you contribute to your 401k plan is your money.You have complete control over how assets are invested and have access to the money at any time (usually with a penalty though).

Disadvantages
- Choices for investment opportunities may be limited for some 401k plans.
- Tax deferral.Although you are not taxed until after the funds have been disbursed, you will eventually pay taxes on that income.

Certificates of Deposit.A certificate of deposit is money that is deposited into a bank or savings account for a certain period of time (which you decide on).

Advantages
- Certificates of deposit are extremely liquid.If you have an emergency, or need to sell them before they are mature you can do it.Early withdrawals are allowed in certain instances such as death, or disability.
- Low Minimum Investment.The minimum amount you need for a certificate of deposit is $1000, which is considerably less than other investment options.
- Flexibility.Interest payments are automatically credited to your account.This makes it easy to reinvest funds; contact your financial consultant or institution and simply have them roll the money over into another CD.
- FDIC Insured.The government will insure your CD because they are issued by banks.It is a completely risk free investment.
- Maturity Term.You get to decide how long you want your money invested for.

Disadvantages
- Maturity.If you need your money before it reaches its maturity term, you will incur a very substantial penalty.
- Deposit rates.The certificate of deposit rates vary depending on which bank you get them from.
- Certificates of deposit have a very low rate of return.

Stocks.Stocks are a form of ownership.When you invest in stock, you become aparticipant in that company stock.

Advantages
- When you invest in stock you are investing long term and the rate of return is usually higher than other investment options.
- You are not limited to one company stock.With the stock market you can invest in as many stocks as you want which increases your chances of making more money.

Disadvantages
- Rate of return is usually higher, but you never can tell with the stock market.
- This is a very high risk investment.The chances of you losing everything you invest, is just as great as make as much as you invest.It is a huge gamble.

As you can see there is more than one option if you are considering investing your money.Depending on where you put your money, there are a lot of different long term investment options.