How do you decide where to put your money? For goals you want to happen within a year into one or more of the cash equivalents ….A bank account or a CD for example. For goals that are at least 5 years in the future, however, you may want to put some of your money into stock. Bonds, real estate, foreign investments, mutual funds, and other assets. Unlike savings accounts or bank CDs, these types of investments are typically not insured by the federal government. There is the risk that you can lose some of your money. How much risk depends on the type of investment? Generally the longer you have the greater your other sources of income. Why take any risk at all with your savings? Because the greater the risk. The greater the potential reward. By investing carefully in such things as stocks and bonds, you are likely to earn significantly more money than by keeping all of your money in a savings account for example. The differences in the average annual returned of various types of investments over time are dramatic.