Compare trust deed investing to CD's

A CD (or certificate of deposit) is usually issued by a bank or credit union. Although they are a very safe investment, they generally offer a fixed interest rate not much higher than a savings account.

Compare trust deed investing to investing in Mutual Funds

With a mutual fund your money is pooled with several investors and managed by a group of professional investors. Although this type of investment is typically safer than stocks, the returns generally aren't as high. This type of investing also carries a considerable amount of fee's that will dig into your returns.

Compare trust deed investing to investing in the stock market

Although it can be very rewarding, there is a tremendous amount of risk involved with investing in the stock market. Most people who invest in stocks have a lot of insight on how to mix high risk and low risk stocks to create a balance that they feel comfortable with.

The result is generaly high risk with moderate rewards.

Compare trust deed investing to investing in bonds

If you own stock in a company, you are a part owner of the company. As a bondholder, you are a creditor. The return on your investment from bonds are typically lower than stocks, but they are generally a much safer investment. The relative safety and stability of bonds helps to offset the fluctuations associated with stocks, which is why many who invest in stocks will also invest in bonds.

Compare trust deed investing to investing in hedge funds

Because hedge funds are privately owned, they are not regulated like mutual funds. And unlike mutual fund managers who earn fee's regardless of how well they perform; hedge fund managers are paid a percentage of the returns they earn instead. While this is attractive to many investors, this also acts as an incintive for the hedge fund manager to make very risky investments.

Compare trust deed investing to investing in commodities.

When investing in commodities, you are basically using the principles of supply and demand to determine whether or not the value of a raw material such as pork bellies or soy beans are going to rise in value. Although you can make an educated guess based upon known information; it is still a guess. There is a great amount of risk in this type of investing but the rewards can be great if you know what you are doing.

Compare trust deed investing to investing in 401K's

401K's used to be considered a stable, long-term investment. But since the whole Enron debacle and so many others losing there retirements in the latest financial storm; people are thinking twice before committing all of their money to a 401K. Perhaps the reason so many still use 401K is because they are considered a passive investment that doesn't require too much attention.

Compare trust deed investing to investing in individual retirement accounts

IRA's are a great way to save your money and to save on your taxes at the same time. The only problem with IRA's is that because of the reduced risk, it also minimizes the potential for greater returns. Many IRA's allow you to use a portion of your money for investing in trust deeds. This is a great way to inhance your return while still minimizing risks to your assets.