Investing Basics
Stocks, Bonds, ETFs, Mutual Funds & Annuities Explained
Investing Basics: Stocks, Bonds, ETFs, Mutual Funds & Annuities Explained
The investment world is full of terminology that can feel overwhelming—but understanding the basics is the first step toward becoming a more confident investor. In this episode of Make It Make Cents, Michelle Cropley and financial advisor Brendan Hayes break down the most common investment vehicles, explain how each one works, and discuss why different investments serve different purposes depending on your financial goals, risk tolerance, and time horizon. Whether you're just beginning your investing journey or looking to better understand what's inside your portfolio, this episode provides a practical foundation for making more informed financial decisions.
Episode Topics
- The differences between stocks, bonds, mutual funds, ETFs, and annuities
- How investors make money through dividends, interest, and long-term appreciation
- Why diversification can help reduce investment risk
- The advantages and tradeoffs of mutual funds versus exchange-traded funds (ETFs)
- What bond ratings mean and why some bonds are considered "junk" bonds
- The different types of annuities and where they may fit into a financial plan
- How investment choices should align with your goals, time horizon, and tolerance for risk
- Why building the right portfolio is about owning the right mix of investments—not simply chasing returns
Key Takeaway
Every investment has a purpose, and no single option is right for every investor. Understanding how these investments work—and how they fit together—can help you build a portfolio that's aligned with your long-term financial goals rather than reacting to short-term market movements.
Disclosure
Make It Make Cents is an educational personal finance podcast produced by Armstrong Advisory Group to help listeners better understand money decisions and long term planning concepts. The show covers broad financial topics such as budgeting, saving, debt management, and retirement planning.
This content of the post or podcast is intended solely to provide general information regarding our business services. Nothing within the post constitutes personalized investment advice or is an offer to buy or sell any security or insurance product. To the extent you wish to engage us for investment advice based upon your personal investment circumstances and objectives, please contact us directly at (781) 433-0001. Armstrong Advisory Group, Inc. does not offer tax or legal advice and no portion of the post or podcast should be interpreted as legal or accounting advice. You are strongly encouraged to seek advice from qualified tax and/or legal experts regarding any tax or legal matters relevant to you. You agree, as a condition precedent to your access to the post or podcast, to release and hold harmless Armstrong Advisory Group, Inc., its officers, directors, owners, employees, and agents from any and all adverse consequences resulting from any of your actions or omissions, which are independent of your receipt of personalized investment advice from Armstrong Advisory Group, Inc. Armstrong Advisory Group ("AAG") is affiliated with an insurance agency called Armstrong Insurance Group, Inc. ("AIGI"). AIGI offers insurance products and services to customers, including investment advisory clients of AAG. AAG refers clients to AIGI for those products and services. AIGI does not, however, compensate AAG for any referrals. Certain AAG representatives are also licensed as insurance professionals appointed with AIGI and may earn commission-based compensation for selling insurance products, including insurance products implemented for AAG clients. Insurance commissions earned by AAG representatives are separate and in addition to AAG's advisory fees. This practice presents a conflict of interest as the representative has a financial incentive to recommend insurance products to a client. Clients are under no obligation, contractually or otherwise, to purchase insurance products through any of AAG's representatives or any other AAG affiliated person.
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