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Resources

Type of Investment	Definition	Fixed or Variable
Savings Account	A deposit account, typically at a bank or other financial institution, with generally low rates of return. Account owners can make withdrawals and deposits without penalty.	Fixed
Certificate of Deposit (CD)	An account where you deposit a specific amount of money for a set period of time; if you withdraw the money before the time is up, you may incur a penalty (lose some of the money invested). While the money is invested, it generates a modest fixed rate of return. When the allotted time has passed, you get your original investment back, plus the interest earned.	Fixed
Bond	A debt investment where you essentially lend your money to an entity or organization for a set amount of time in order to receive an expected rate of return. When the allotted time has passed, you get your original investment back, plus the interest earned. Bonds can be issued by governments and corporations. Depending on the issuing organization, bonds can be considered low risk or high risk.	Fixed
Stock	This represents a portion of ownership in a company, sold as shares. Each share represents a piece of ownership, so if a company has issued 100,000 shares and you own one share, you own 1/100,000th of that company. The rate of return depends on company performance.	Variable
Mutual Fund	These are typically made up of a group of assorted stocks and bonds. The fund is managed by a professional. Mutual funds provide a simple way to diversify investments. If the mutual fund performs well, the value of your investment increases. If it performs poorly, the value of your investment decreases.	Variable
Real Estate	An ownership investment in real property such as houses, apartments, or commercial buildings. Returns come in the form of income, an increase in the value of the property, or both. Losses may also occur for many reasons, including a decrease in the value of the property or tenants not paying the rent or damaging the property.	Variable
Business Ownership	This investment represents having an ownership portion in a privately owned business. Returns depend on business performance.	Variable