Levels/Stages of Investing; Characteristics (MATCH VERSION)

Suitable for investors with a very low-risk tolerance, short time horizons, or those seeking to protect their principal, such as those nearing or in retirement

Very conservative

High-yield savings accounts (offer higher interest rates than traditional savings accounts with FDIC insurance)

Very conservative

Money market funds (invest in short-term debt instruments with low risk and high liquidity)

Very conservative

Certificates of Deposit (CDs) (offer a fixed interest rate for a specific term, with penalties for early withdrawal)

Very conservative

Treasury Bills (T-bills) (short-term debt securities issued by the U.S. government)

Very conservative

Treasury inflation-protected securities (TIPS) (offer protection against inflation by adjusting principal with the Consumer Price Index (CPI))

Very conservative

Suitable for investors seeking some growth potential while minimizing risk, with a slightly longer time horizon than very conservative investors

Conservative

Investment-grade corporate bonds (issued by companies with high credit ratings, offering a moderate level of risk and potential return)

Conservative

Bond funds (offer diversified exposure to bonds with varying maturities and credit quality)

Conservative

Municipal bonds (issued by state and local governments, often providing tax-exempt income)

Conservative

Annuities (insurance contracts that provide a guaranteed stream of income, typically for a specific period or for life)

Conservative

Suitable for investors with a medium-risk tolerance and a medium-term investment horizon

Moderate

Dividend-paying stocks (stocks of established companies that pay a regular dividend, providing income and potential for growth)

Moderate

Preferred stocks (hybrid securities combining features of stocks and bonds, with a fixed dividend and higher priority than common stock)

Moderate

Balanced mutual funds (invest in a mix of stocks and bonds, aiming for a balance of growth and income)

Moderate

Suitable for investors with a higher-risk tolerance, a longer time horizon, and a focus on long-term growth

Moderately aggressive

Large-cap stocks (stocks of well-established, large companies with potential for growth and stability)

Moderately aggressive

Growth stock mutual funds (invest in companies expected to experience rapid growth)

Moderately aggressive

Suitable for investors with a high-risk tolerance, a long-term investment horizon, and willingness to weather market fluctuations

Aggressive

Small-cap stocks (stocks of smaller companies with higher growth potential but also higher risk)

Aggressive

Emerging market stocks (stocks of companies in developing countries with potential for rapid growth, but also subject to political and economic risks)

Aggressive

Derivative contracts that offer leverage and the potential for high returns, but also high risk of losses

Aggressive

Suitable for experienced investors with a very high-risk tolerance, a long-term horizon, and a sophisticated understanding of the markets

Very aggressive

Penny stocks (shares of very small companies trading at low prices, with high volatility and potential for both significant gains and losses)

Very aggressive