Advantages and Disadvantages of Investments
S. Antoinette Turner
MAT: 126 Survey of Mathematical Methods
Instructor Tracy Abrams
July 19, 2010
The Advantages and Disadvantages of Investments
Investing today is quite different from investing in the past. At this particular moment in time we are in a recession and the value of a dollar is slowing declining. However there are several ways to help you escape the down pour. With a checking account, money market account, passbook account or certificate of deposit you can possible come out in the black instead of the red in this ever growing dilemma.
Investing through a checking account has several advantages like the freedom to not carry cash on you, easier way to make transactions and bill payments. Knowing that your money is safe and secure and insured by the FDIC is also a great advantage it sure does beat hiding your money under the mattress or in a tomato can! Some of the disadvantages of a checking account is that sometimes the fee to maintain the account is extremely high and unnecessary and when you forget to pay that fee it ends up costing you more than what you sometimes may have in the bank. I am speaking for experience for I have had quite a few accounts closed because of lack of maintaining. Another disadvantage is that with some of the debit cards that are used you can have 1 cent in your account and swipe your card for a higher purchase amount and it will go through. Although it was possible to make your purchase you now have to worry about getting the funds back into the account to avoid a negative balance and yet another fee. You have to be very disciplined and very money and budget conscious to be successful at investing by way of a checking account.
Money market accounts pay a higher interest rate than other savings accounts. You are limited to how many transactions you can make per month. It will pay much better interest, the rates on these accounts are also much better than other...