Skip to Main Content

Start of main content

Know the Difference Between Investments

Take a closer look at the three common investments and learn how they could work for you.

Chapter 5: Common Investments

03-04-2019

Video Transcript

Cash equivalents, bonds, and stocks are three common investments you're likely to know. The time horizon you're on might help you decide which investment to use.

Bonds, for example, are loans you make to another entity. In most cases, the bonds you'll invest in are from a corporation, municipality, or government. Bonds are considered a medium risk and reward.

If you're wanting to invest over a longer period of time, stocks are a great option. Stocks offer partial ownership in a public company.

Refer to the downloadable Just the Facts: Investing Worksheet to help you think through how to use these three investments.

Your Chapter 5 Checklist:

Securities distributed by State Farm VP Management Corp.

Securities, insurance and annuity products are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.

State Farm VP Management Corp. is a separate entity from those State Farm® entities which provide banking and insurance products.

Bonds are subject to interest rate risk and may decline in value due to an increase in interest rates.

Neither State Farm® nor its agents provide tax or legal advice.


Get a Quote

Select a product to start a quote.


Contact Us

844-373-0003 844-373-0003

Also Important

Reaching Your Financial Goals

Reaching Your Financial Goals

Those goals don’t have to be lofty or complicated. “Keep them simple and attainable” is the message here.

Digital Tools to Streamline Your Insurance and Finances

Digital Tools to Streamline Your Insurance and Finances

Managing your money and insurance just got easier.

Related Articles

Save or shred? When you should keep financial documents.

Save or shred? When you should keep financial documents.

When it comes to tax and important documentation knowing whether to keep it or shred it is important. We've compiled information to help you with this important task.

Real People, Real Dollars

Real People, Real Dollars

Questions, issues and stumbles related to money and budgets are often measured by one challenge at a time: saving for a house, paying off a credit card, even establishing an emergency fund.

Financial Jargon Simplified: Health Insurance

Financial Jargon Simplified: Health Insurance

Doing some homework to understand important jargon can help you navigate insurance with confidence.