* Mutual funds may also have bonds. The fund might be invested entirely in government, corporate or municipal bonds.

* Blended mutual funds are mutual funds with stocks and bonds. With an asset allocation of sixty-percent stocks and forty-percent bonds and cash they are mirroring the portfolio theory of diversification many advisors find a good fit for some clients.

Mutual funds reflect their bond or stock holdings and help us invest to suit our needs. There are ‘equity’ mutual funds that hold a basket of stocks. They might be small-cap stocks or a basket of a particular sector, like technology. The mutual fund could also have a myriad basket of companies.

A ‘stock’ is ownership in a company, a share, of a ‘publically traded’ firm. My company has shares of stock but they are not for sale and my company’s stock is not publically traded on a ‘stock exchange.’

A ‘bond’ is a debt ‘instrument.’ It’s sort of like a mortgage in that there was a financial need and instead of seeking funds from the local federal credit union, the bond issuers seek us to lend them money and they pledge to pay us back our borrowed money with interest. Whether the bond is government bond, from a municipality (to build a hospital or school), or issued by a corporation they may provide a source of cash-flow and possibly less risk that a stock.

 Yes, the dreaded investments. I seldom meet people, no matter their profession, who feel that they have a good grasp on their investments. Here are some things to keep in mind when pondering your options.

Only Ponzi-scheme operators make money every time. The future is a mystery and none of us know it. I like and read economic news voraciously so I have more knowledge of issues that you in your busy life, may not know. But none of us knows what the stock market will do next week. We are all doing what works best for us and the best we know how to do.

Folks who have peace over their money don’t feel compelled to announce, “He who dies with the most toys wins.”

Do everything you can to pay off credit cards. Whether it’s adding an extra $5 per month when you send out the bill or adding $500 per payment.  No matter your income level, pay down debt, especially on high interest credit. Don’t add more purchases to the account. Don’t accept the 10% off for shopping today with your new store credit card! Just say NO. Be self-controlled and disciplined.  Most of us are not in the situation where we are financially desperate, but trends indicate that we simply want what we want when we want it and just keep shopping. Knock that off.

 First, have a budget. What does that mean? No, a budget it won’t make your head explode. It should be very straightforward and needed be complicated with piles of paper. Think of it like this: Simply look every dollar in the eye and say, “Where do you think YOU’RE going?”  Then write down each dollar’s purpose.