My OperaInvestment Advice Stock Pro Tips
Saturday, March 17, 2012 8:09:28 AM
Even though investing money always involves risk, you need to start investing soon if you want to get ahead. Investing in the future won't be a cake walk, but there's no better time to start putting your money to work then NOW. Money in the bank won't keep you ahead of inflation and taxes, so here's how to start investing with less risk and worry.
If you have never invested money before it can be difficult to know where to start and many people will give you many different and often opposite opinions. A lot of people will tell you that the market is not good at the moment and you should wait while others will tell you the latest technology stock that is about to take off. If you are new to investing then you should take a conservative approach at first, but the important thing is to just get started.
For the vast majority of people mutual fund companies are the best place to start investing money, and the best place to stay. Get on the internet and search "no-load funds" and you'll see ads by Vanguard, Fidelity and T Rowe price: some of the biggest, best and most affordable fund companies in America. No load means that you pay no sales charges, so this, coupled with the lower total fees and expenses they offer can save you thousands of dollars over the years. Get familiar with what they offer, and then give the company of your choice a toll-free call if you need help opening an account.
Start investing by putting your initial investment into the safest fund they have, which will be called a Money Market Fund. Here you will earn interest in the form of dividends that will be automatically reinvested for you in more shares. You will earn very little interest in 2011 and 2012 because interest rates are near all-time lows (like they are at your bank). But your money is safe and you've taken the first step. Now, you're ready for step number two, which means you will move some of your money and start investing in a fund where you can put your money to work in stocks and bonds. This is easy to do, and you can always call the fund company for help, free of charge.
There are many types of funds but the safest is what is called a balanced fund. These type of funds invest in stocks, bonds and other financial instruments. You should look for a fund that states it has a conservative asset allocation as this will give reasonable returns at an acceptable risk. A fund that is aimed at retirement is usually the safest of these fund types as it will normally invest part of your money in the other funds offered by the company giving a high degree of diversification.
The more comfortable you get in investing to grow your money you can start investigating funds that offer a higher rate of return. Be aware that higher returns always equate to higher risks but if you do your homework you can manage the risk. If you look for a balanced fund with a moderate asset allocation you can expect higher returns with a reasonably low risk.
No one can tell you exactly what the markets will do in the next year but if you look at the money markets over the past 20 years you will see they have steadily gone up in value. There is never a time that is risk free to start investing money but you need to start investing today if you want to reach you financial goals.
online trading, investment advice
If you have never invested money before it can be difficult to know where to start and many people will give you many different and often opposite opinions. A lot of people will tell you that the market is not good at the moment and you should wait while others will tell you the latest technology stock that is about to take off. If you are new to investing then you should take a conservative approach at first, but the important thing is to just get started.
For the vast majority of people mutual fund companies are the best place to start investing money, and the best place to stay. Get on the internet and search "no-load funds" and you'll see ads by Vanguard, Fidelity and T Rowe price: some of the biggest, best and most affordable fund companies in America. No load means that you pay no sales charges, so this, coupled with the lower total fees and expenses they offer can save you thousands of dollars over the years. Get familiar with what they offer, and then give the company of your choice a toll-free call if you need help opening an account.
Start investing by putting your initial investment into the safest fund they have, which will be called a Money Market Fund. Here you will earn interest in the form of dividends that will be automatically reinvested for you in more shares. You will earn very little interest in 2011 and 2012 because interest rates are near all-time lows (like they are at your bank). But your money is safe and you've taken the first step. Now, you're ready for step number two, which means you will move some of your money and start investing in a fund where you can put your money to work in stocks and bonds. This is easy to do, and you can always call the fund company for help, free of charge.
There are many types of funds but the safest is what is called a balanced fund. These type of funds invest in stocks, bonds and other financial instruments. You should look for a fund that states it has a conservative asset allocation as this will give reasonable returns at an acceptable risk. A fund that is aimed at retirement is usually the safest of these fund types as it will normally invest part of your money in the other funds offered by the company giving a high degree of diversification.
The more comfortable you get in investing to grow your money you can start investigating funds that offer a higher rate of return. Be aware that higher returns always equate to higher risks but if you do your homework you can manage the risk. If you look for a balanced fund with a moderate asset allocation you can expect higher returns with a reasonably low risk.
No one can tell you exactly what the markets will do in the next year but if you look at the money markets over the past 20 years you will see they have steadily gone up in value. There is never a time that is risk free to start investing money but you need to start investing today if you want to reach you financial goals.
online trading, investment advice
