what is investing? how do you get started?

Answer 1

Investing is taking the $ you saved and putting it into something (e.g. company, stocks, mutual funds, bonds, etc.) that you think will grow over time faster than just keeping it in a bank.

To get started, first step is to save. Second step is to determine your objectives and time frame. Everybody's situation is a bit different, so I caution to provide advice, but here are some good rules of thumb.

Annual rates of return
8-10% Stock Market/Mutual Funds that mirror the S&P 500
4-6% Bonds
2-4% Money Market/Treasury Bills/CD's

Bear in mind that historically, inflation has been 3% on average for the last 70-80yrs. So, you can subtract that from each of above options to see your real rate...bear in mind that the same is true about leaving it in the bank (which is probably your lowest return option).

While the Stock Market has highest rate of return, it is also the riskiest, meaning that there can be losses in any particular year. If your investment horizon is 10 yrs or more, this is statistically the best option for you.

Be careful w/ stocks & mutual funds as there are usually service charges associated with them. Vanguard 500 is a good basic one to get started - it mirrors the stock market, but has the lowest fees associated with it, so it's a very good deal.

If you want a really good book on investing, I'd suggest John Bogle's "On Investing." He explains everything in laymen's terms and gives historical figures (prob. more accurate than what I wrote above).

Answer 2

Others aren't actually answering your question so let me. Toug th actually answer as you need to provide more information such as do you have anything to invest? First educate yourself about what types of investments are available to the general public...Stocks, Mutual Funds, Bonds, Commodities, Futures, etc. Read some books at the library on Finance and Investing than ask TRUSTED friends and neighbors about who they turn to for financial advice and get a good advisor (NOT A STOCK BROKER). Many will work with you even if you have little or nothing to start with so long as you're consistent (PAY YOURSELF FIRST consistently).

So far as getting started the key is having a steady income flow like a JOB than you can PAY YOURSELF FIRST. What I mean is have monies taken out of your check for the company 401K and get some advice on which Mutual Funds allowed in your company plan would be best for your investment objectives / strategies. Second is to start a MIP (Monthly Investment Plan) with a well regarded NO-LOAD Mutual Fund Company like Vanguard or T Rowe Price and have the monies removed from your checking or savings account on a consistent monthly basis. Hope I have helped you.

Answer 3

If you can save some money i.e. your expenses are less than your income you would be left with a surplus that you can invest.
If your money sits in your bank (money market account) it typically earns less than 5% per year. Money invested in stocks or mutual funds can earn up to 3-4 times more, but there is also a risk of loosing your money too.
If you have any credit card balances you should first pay them off before you start investing as credit card interest charges can be higher than what you may make by investing.

Answer 4

Saving money basically. You could take a gamble and invest in stocks and shares, but if you invest in a simple savings account, you will be guaranteed that you will get interest, but it is only about 5% or 6% typically. So £1000 would become £1060 after one year.

Answer 5

look at stock you know I have stock in MCD & YUM & GE only cause they have been around since I was little and arent going anywhere they are doing pretty well and I just got a MF so look up stuff on your own. Or at work ask people do they have stock or what they invest in an go from there ,If you dont make your money work for you no one esle will

Answer 6

Investing is not about money.

You could invest in Roses, Chocolate and Ice Cream to get a girl.
You could invest 4 years to get a College Degree.
You could invest in a condom to stay alive (Now that's what I call a good investment!)

Top 3 Answerer in Business & Finance. (Vote for me)

Answer 7

What ever you do, do not "invest" in Quixtar. It is a scam that will not make you money.

Answer 8

invest some time and effort and find out.

Answer 9

Putting money in the stock market! You can find out more from your local bank!

Answer 10

you defer consumption today with the expectation of higher consumption tomorrow.


Take a course at your local college or read a elementary textbook.

Stocks are not the only asset class available.