OTHER INVESTMENTS

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OTHER INVESTMENTS Savings and Investing
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Investing in Real Estate

• Real estate is land and any buildings on it
• Direct investment in vacant land, single family
  home, condominium, duplex, and recreation
  properties
• Indirect real estate investment
• Real estate syndicate pool investor money to
  purchase high value real estate
• Real estate investment trust (REIT) is similar to
  a mutual fund
• Can buy or sell REIT shares

3
Real Estate (contd)

• Participation certificate investment in a pool
  of mortgages that have been purchased by a
  government agency
• Govt National Mortgage Association (Ginnie Mae)
• Federal Home Loan Mortgage Corp (Freddie Mac)
• Federal National Mortgage Association (Fannie
  Mae)
• Mortgage is a loan to purchase real estate
• Depreciation is a decline in the value of a
  property due to normal wear and tear

4
Metals, Gems Collectables

• Speculative investments
• Potential storage issues
• Indirect investments (shares in gold mining
  company)
• Resale market is usually small

5
Financial Instruments

• Commodities include farm products and metals
• Volatile prices due to non market and political
  risk
• Futures - contracts to buy and sell commodities
  or stocks for a specified price on a specified
  date in the future
• Option is a right, not the obligation, to buy or
  sell a commodity or stock for a specified price
  within a specified time period
• Call option right to buy
• Put option right to sell