The Best way To Start Investing

by Penny

The best way to start investing is to save up about $500 and start by investing it in a good, reliable stock mutual fund.

A mutual fund is a fund made up of over 100 different stocks from companies and it has a fund manager managing it for you. This is going to be a professional investor so they hopefully will know what they are doing.

Try to save and add about $100 a month if possible, and don't even think about touching it. If you have a lot of money free that you would like to invest and start your own portfolio, take 100 - your age and invest (e.g 100 - 40 = 60%. Invest 60% of this money in stocks, and stock mutual funds, hold %10 in Cash and CDs for emergencies, and put the rest in high rated bonds or money market accounts.

Seek the advice of a reputable financial adviser who has been around a while and has a good track record. The money you spend on an adviser is well worth it, it could save you losing all your money in the long run.