From time to time it is a good idea to review some of the very basic investing options that are available to people like you and me. We need to be informed about such things because our money will slowly evaporate away thanks to inflation if we are not careful about how we invest and use it.

The Stock Market: The most commonly referenced type of investment for most people is in the stock market. This is the place where all public companies are traded. Basically, one a company goes public in order to sell pieces of itself to raise capital they are part of the stock market. Some of the biggest companies in the world are on the stock market such as Wal-Mart, Coca-Cola, and many others.

Any individual can put some money to work in the market by getting invested either through a brokerage account online, in-person, or even through an employer 401(k) program. There are a lot of ways to get started, you just need to take the actions to make it happen.

Selling Annuities: An annuity is a form of a contract between an individual and an insurance company. The individual agrees to pay a lump sum of money up front to the insurance company in exchange for guaranteed payments with interest that are paid out over time to them in the long run. The point of this is to build up a guaranteed stream of income that you would not otherwise have had.

The only problem with annuities is that sometimes people’s financial situation changes and they need to make some changes along with it to get more of their available capital into their hands right away. In other words, it is very important to have access to one’s money right when they need it. Thus, they may need to sell an annuity. To do that they will need to either find some way to negotiate a buyout from the insurance company itself or they will need to find an interested third-party who will buy it from them. That gets them out of the annuity and gets them some of their much needed cash.

Real Estate: Finally, it is worth mentioning real estate briefly as a potential investment as well. This is a great way to build an income stream for many people. They can purchase some properties now and take in renters in order to grow their monthly income. Just be prepared to do all of the upkeep yourself if you decide to get involved with this.