It’s time to invest money and you’re confused by the millions of investment options out there. This money guide will make things simple for you. There are only 4 basic investment options in the world. Fasten your seatbelt for this quick trip, we have much ground to cover in a few hundred words.

Investment Option # 1: safe investments that pay interest. There are two ways to invest the money here. First, in savings vehicles like bank certificates of deposit, fixed annuities, fixed accounts in retirement plans and savings bonds. Its principle is fixed and secure, and your interest rate is fixed, sometimes over a given period of time.

The second type of investment is safe cash equivalents, refers only as "cash". This option includes investment in high quality money market securities such as Treasury bills (short term), savings and money market accounts, and money market mutual funds. Its principle is fixed and secure, but the interest rate is fixed for a long time and / or subject to change.

Option # 2: BONDS. This does not refer to U. S. Savings Bonds. This includes Treasuries, corporate bonds, municipal bonds, and so on. Here the interest rate is fixed and unchanging. Its principle is not fixed, which means that the value of your bond investment will fluctuate. By investing the money in bonds, you may lose money. The advantage: higher interest income in comparison with the option # 1.

Investment # 3: The shares are variable and investments fluctuate in value significantly. People invest money in stocks to achieve revenue growth and a lesser extent, in the form of dividends. Stock price is not fixed, and dividends are subject to change and may be completely eliminated. The advantage: higher potential returns as stock prices rise.

Investment Option # 4: alternative investments. This includes investments in virtually all "other" and this is where you need to think outside the box of traditional investment. Typically, most people do not have time, knowledge, or inclination to invest in real estate, natural resources like oil, gold and silver, foreign investment, commodities such as soybeans and corn, and the list goes on.

The fact that all the "other" investments are grouped into one category should tell you something. The first 3 are your investment options, and have traditionally been the kingpins of diversification and investment strategy. More and more financial advisors believe that alternative investments should receive the attention they deserve. Advantage: it adds even more valuable diversification for your portfolio.

This money guide believes that a good sound investment strategy includes investments of the 4 categories. Where can you invest money to offset losses in bad stock market? The answer: the alternative investments.

Now, to wrap things up, is there an easy way to invest money in each of the 4 basic investment options? Sure it is … investment funds. All within a major fund family that you may find the following, from # 1 to # 4: Money market funds, bond funds, mutual funds and specialized funds.

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