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Basics >> Getting Your Feet Wet Begin Investing
If you are anxious to get your investments started, you can get
started right away without having a lot of knowledge about the stock
market. Start by being a conservative investor with a low risk tolerance.
This will give you a way to making your money grow while you learn
more about investing.
Start with an interest bearing savings account. You may already
have one. If you dont, you should. A savings account can be opened
at the same bank that you do your checking at or at any other
bank. A savings account should pay 2 4% on the money that you
have in the account.
Its not a lot of money unless you have a million dollars in that
account but it is a start, and it is money making money.
Next, invest in money market funds. This can often be done through
your bank. These funds have higher interest payouts than typical
savings accounts, but they work much the same way. These are short
term investments, so your money wont be tied up for a long period
of time but again, it is money making money.
Certificates of Deposit are also sound investments with no risk.
The interest rates on CDs are typically higher than those of savings
accounts or Money Market Funds.
You can select the duration of your investment, and interest
is paid regularly until the CD reaches maturity. CDs can be purchased
at your bank, and your bank will insure them against loss. When
the CD reaches maturity, you receive your original investment,
plus the interest that the CD has earned.
If you are just starting out, one or all of these three types
of investments is the best starting point. Again, this will allow
your money to start making money for you while you learn more
about investing in other places.
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