If you want to pay for retirement, college, or a home, you can invest your money to fund your goals. Before you invest, make sure you can answer all of these questions:
What type of earnings can you expect on your investment? Will you get income in the form of interest, dividends, or rent?
How quickly can you get your money, if you need to sell or cash in your investment? You can sell stocks, bonds, and shares in mutual funds at any time. However, there is no guarantee you’ll get back all the money you invested. Other investments, such as certificates of deposit (CDs) or IRAs, often limit when you can cash out.