How should I invest?

Answer 1

1.) Know you risk tolerance....Low to high.

2.) Factor in your age. (stock markets tend to perform the best over a long term hold strategy, so how much time do you have to invest?)

3.) Learn everything that you can about investing to make yourself comfortable with any investment. (subscribe to financial newspapers, magazines, e-zines or attend college courses)

4.) Develop a professional team (CFP, Stockbroker, etc.)

5.) Be prepared to lose all your money & only use investing money (as opposed to your mortgage, food or family money).

6.) Don't play the odds, like the lottery & throw all your money in one stock, plan a strategy that you are comfortable with and implement it to a tee!
ex. Take $20,000 and purchase 20 different stocks.

7.) If your risk tolerance is high & your money isn't needed in the near future, invest in REIT's or Real Estate.

8.) Make sure you never put yourself in a position where you will never sleep at night.

9.) Join an Investment club and learn!

10.) And finally, learn to read financial statements. Never stop learning about how to invest. Learn from a mentor.

**These are not in any special order**

Answer 2

First of all, you need to be clear about why you want to invest. Is it because you want to grow enough funds for retirement or some other reasons?

Then based on that objective, determine what is your investment horizon (how long you think you can continue to stay invested without having the need to take the money out).

Different investing instruments cater to different needs and investment horizon. If you are long-term investor (typically more than 10-20 years), consider investing in stocks. Stocks have the highest possible returns long term compared to other instruments. However, keep in mind that stocks are extremely volatile in the short-term and you need a good knowledge of the various financial aspects of the industry and company you intend to invest in. If you are an amateur, I suggest that you invest in a low-cost index fund that track a market index. The low expense ratio of index funds will beat most mutual funds in terms of returns over the long term. Even Warren Buffett has endorsed index funds over mutual funds for investors who are starting out.

If you are risk averse and do need the money back short term, you can also consider bonds or T-bills. Although returns of these instruments are lower than stocks and equities, they are less risky over the short term.

Hope this helps.

Answer 3

The first thing you must do is determine why you should invest. After that you can determine what you need to invest in. People invest for various reasons. Define why you want ot invest and your investing time frame. Like in years. Then find a vehicle (stocks, bonds , and or mutuals), that best fits your needs.

Answer 4

There are few things that you should consider before investing.How long you want to invest for? what kind of return you are looking for income or growth.If you are looking for high returns then invest in shares.
check the link below to learn more on investing in shares.
all the best.

http://www.smart-investments.org/Best-Stock-Investments/How-To-Invest-In-Stock.php

Answer 5

In general stocks perform better than other asset classes over the long term.

The easiest thing you can do is open a brokerage account and buy what are called exchange traded funds--these are essentially mutual funds that trade like stocks. Buy shares in a fund that holds the stocks in the S&P 500 (a list of the 500 biggest US companies) such as SPY or IVV. That way you'll have a little stock in a lot of different companies, which reduces the liklihood that you'll accidentally pick the next Enron. Then sit back and relax.

Answer 6

do some research first
follow the news and read up on the web regarding investment

www.asx.com.au has an online investing course for beginners for Australian investors

www.investopedia.com has tutorials, articles, advice and dictionary of stockmarket terms...for the yankies

you must also decide how you wish to invest, hwo much risk you can bear, what kind of investments you wish to undertake

equity markets and real estate are both quite viable options...

for beginners, a well-informed and well researched managed fund or even trying to buy steady blue chp stocks for the long term are quite safe options

Answer 7

Right now, the best investment is put your money in a FDIC-insured bank. Let things sort themselves out a tad bit. Some indications are that the market may fall more, much more. Some indications are that an upward swing is justified (better productivity and such numbers than europe and most of the world, etc.). Right now, you might shop for some bargains in the stock market, but wait until it stops falling, okay?

Answer 8

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Answer 9

How much you got to invest?

Since you came with such a simple question, you probably should stick to simple investments such as CD's.

If you just inherited $5 million, and have no clue, I'd say go for tax free munis.

Answer 10

You need to talk to a profession financial advisor. Call Smith Barney, Charles Schwab or any other well know investment co. They can help you save for retirement and plan a portfolio for you.