There are two basic ways to invest money. You can loan it to pay for a company's or the government's debt, or you can own the investment yourself. When you loan your money to a company or the government, you receive income based upon a set interest rate for a set period of time. Loanership, or debt investments, are savings accounts, bonds, Ginny Maes, money market accounts, treasury bills, bonds and notes, and certificates of deposit.

You own an investment or equity when you purchase part or all of it, such as shares of stock, mutual funds, real estate, gold coins, or collectibles. The value of ownership assets will fluctuate with market conditions, potentially giving you a higher return than you might receive from loaned money.

As you near retirement age most experts suggest that some of your equity investments be converted to debt investments to provide a steadier income during retirement.

When you begin an investment program, it is important that you learn as much as possible about investment alternatives. Match the alternatives that follow with your risk tolerance and investment goals. Use the Compare Similar Stocks and Compare Mutual Funds worksheets to help you sort through your alternatives