2007-01-05 20:10:53 · 7 answers · asked by yer 1 in Business & Finance ➔ Investing
What might be proper for one person may not be so for another. As one of your responders mentioned for many mutual funds are a good way to invest. The main problem with investing in mutual funds is finding the right ones to invest in. There are thousands. And about 70% underperform the market in general.
If you do not know anything about investing, begin by investing in "Investing for Dummies". It is a good beginning book that will help you learn about investing. Most books stores and perhaps you library have have. Amazon sells it for under $20.00.
There has been a great deal of research done on the subject of investing, it one of the conclusions is that you reduce your risk and increase your returns by havind a diverse portfolio of investments. Some of this and some of that. There are mutual funds that specialize in diversity. But in my opinion if your level of assets allows, it is better to provide your own level of diversity.
2007-01-05 22:19:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Before investing:
1) pay off any credit card or hight interest loans you may have. There is no point in investing to get upto 10% return on your money when your loans are charging you 15% interest. So pay off those loans.
2) If you are employed, and your company has a 401(K) or retirement plan, contribute to it to the maximum. Some companies even match some percentage of the money you put in. This is "free money" that is invested on your behalf as an incentive to save and as a reward for working for them.
3) Contribute to an IRA or Roth IRA. Points 2 and 3 have tax benefits.
For investing in your 401(K) or IRA's use no load mutual funds or index funds. Vanguard offers good funds. Diversify your investment in domestic markets, international markets and bonds . For example, if you invest in just three funds from Vanguard such as VFINX (Total US market), VGTSX (total international market) and VBMFX (total bond market) you will have a good portfolio that will be steady in good times and bad. Invest regularly in these. Sure, its boring, but I find excitement in other parts of my life rather than on my investments.
Be careful with individual stocks. It is true that you will make more money with stocks but you may lose a lot more too. If you are young and can handle the risk, then go ahead, but only after you have researched the stock you are going to buy.
Good luck
2007-01-06 01:27:59 · answer #2 · answered by FLeabag 1 · 0⤊ 0⤋
If you had to ask this question then I assume you don't know anything about investing. Well the best place to start is with a mutual fund. Let the pros manage your money and sit back and enjoy. Go to Vanguard . com They are very good. No commissions and low expenses. I like their Equity Income Fund. it does very well and over the long term you will do well. Add to it each month and reinvest all Div. And gains into additional shares.
2007-01-05 20:53:27 · answer #3 · answered by ? 6 · 0⤊ 0⤋
Go attend some course on investing. Read investing books and motivational books.
2007-01-05 20:17:08 · answer #4 · answered by Dang 3 · 0⤊ 0⤋
grow to be frugal (spend a number of your money on the common neccesities:nutrition, water, defend, clothing and so on.) and save up something of it. continuously stay maximum reasonable (in no way shop up with the Joneses) and spend your money properly. Use the money to pay fees (occasion:charges). Be very careful of the inventory marketplace.
2016-11-26 23:30:05 · answer #5 · answered by ? 4 · 0⤊ 0⤋
Look into this MSN website for some info on how to get started:
http://moneycentral.msn.com/beginnerguide.asp?page=introduction
It's pretty easy reading...and covers enough of the basics to get you started.
2007-01-06 05:04:05 · answer #6 · answered by jebediabartlett 6 · 0⤊ 0⤋
Let a broker do it for you.
2007-01-05 20:12:05 · answer #7 · answered by Anonymous · 0⤊ 0⤋