Topic 9: Financial Markets

I might want to invest in pension accounts.  In terms of investing in financial business, the more time and money one has will be better.  The downside of pension accounts is to gain less money every time I get my salary. I do not think that there is any risk involved in pension account. The more money I save in to my pension account, the more I will get back when I retire from a job. The early I get involved into my pension account, the more I can gain back when I retire.
The first is to earn dividend payments, which are a share of the corporation’s profits that are paid back to the corporation’s stockholders. The second reason is to earn capital gains by selling the stock at a price greater than the purchase price. In my current life stage, I probably do not have enough money to buy a stock and I also cannot take the risk of losing the money. Bonds that are backed by the U.S. government are also considered to be almost risk-free because it is highly unlikely that the government would not pay back its loans. Almost all other investments carry some risk.
 I find it to be very attractive because I do not have to risk anything in order to make my investment. I think sometimes it is better to save all the money, and use it later when I retire so that I do not have to worry about my expanse and income.  The earlier I can start to gain money in the pension account the better. Rather than choosing other types of investment like CDs and mutual funds, which I have to take the risk of losing my money, I can just save all the money and use it later in my life. This not only will benefit myself, I also can use the money from pension account to educate my children and grandchildren.