Speak my mind

Last night I asked my dad for his opinion about time deposit and trust fund. He is not comfortable with the thought of me investing my savings in a trust fund. He told me to think about it and try researching more on time deposits. Well i guess he is just concerned about my hard earned savings.

Actually I have been doing my research for almost a year now and I decided that I will invest my savings on a trust fund. There were many factors that i took into consideration for my decisions. I asked myself a lot of questions and weighed things before finally deciding. First of all I tried to assess my situation right now. I’m in a relationship right now but i don’t have some obligations regarding any children. I’m currently working for a company which offered me a good salary. I have plans in finishing law school. I have not yet reached the peak of my career. Last but not the least I have no debts.

After my careful assessment, I asked myself how long am I willing to invest my savings, how much am I willing to risk, and how much am I willing to invest. If I am not willing to take any risk then the time deposit would fit perfectly for me. The draw back for the time deposit on the other hand is it is usually locked in a particular period and you can’t get your money anytime. Most time deposits also involve a large sums of money. On the good side, all time deposits are insured and your investment is always secured. I also looked at the benefits and disadvantages of the trust fund. Most trust fund offer larger returns compared to the time deposit. There are some trust funds that double your money in just the span of two years, but the returns for this type of investment are not guaranteed. This is the disadvantage of trust funds. I read on an article regarding investment in trust fund as a rule of thumb “the higher the interest the greater the risk”. You can’t expect to receive large returns with small risk investments.

To sum all this up, I decided to go for the trust fund, particularly the equity fund. This is the trust fund that I mentioned earlier which doubled the return in two years. I am not really concerned about the fluctuating rates right now since I plan to invest this for quiet a long time. I’ll try and give a short discuss about the different types of trust fund on another post. Till next time.