Advantages and Disadvantages of Investing

Advantages and Disadvantages of Investing - Advantages and...

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Advantages and Disadvantages of Investing There are many types of investment strategies. Some can be good and some can be very bad. As an example, I have been given $1000 to invest. I will discuss four different investments and discuss which are more favorable. I will first begin with a checking account. A checking account is primarily used for managing personal finances. The main advantage of this type of account is to avoid check cashing fees that are charged by check cashing services. With the $1000 that I have to invest, if this were in the form of a check, after cashing I would end up with typically 10% less of the total. This is due to the fees attached. The disadvantages of a checking account are the overdraft charges that are assessed that are caused by bad money management. There are all sorts of fees attached to overdrafts that vary from bank to bank. The next account is a money market account. This disadvantage of this type of account seems to outweigh the advantages. This account typically has a higher interest
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This note was uploaded on 11/26/2011 for the course MGT 380 380 taught by Professor Lent during the Spring '10 term at Ashford University.

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Advantages and Disadvantages of Investing - Advantages and...

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