Wednesday, August 8, 2007


An Invest

When you begin starting an investment, you may find yourself
wondering where you should begin. You may have heard friends or co workers talking
about their investments, and decided you should give it a try. You may have
also found yourself wondering where they got the money to start or how they
knew what to invest in. Then again, there are a lot of people who don’t
know where to begin, so they never start at all.

The wide array of investment related choices, the vast amount
of information about investing, and the risk alone is intimidating and may prevent
you from taking those first steps towards starting an investment. Keep in mind
that is doesn’t have to be that way. Believe it or not, you only need
to know a few basics in order to begin your career in the world of investing.

The first question most people have is where you get the money
to invest. If you look around, you will find plenty of stock mutual funds that
allow you to invest with 500 dollars or less. You could use your next bonus
at work, your income tax refund, or simply put in some overtime for some extra
cash. If you are unable to come up with 500 dollars to start your portfolio,
many funds will allow you to skip the initial lump sum investment if you sign
up for monthly withdrawals from your checking account.

When starting an investment, you are ready for some long term
investments. The step in choosing is knowing what your goals are. The investment
type you choose will depend on the amount of time available before you need
the money. Most all stocks are considered long term investments, and therefore
it’s best to plan on holding stocks or stock mutual funds for five years
or longer.

The next thing you will need to know when starting an investment
is your risk tolerance. If you’re the type of person that hides your money
under your mattress because you don’t trust the bank, you’re probably
not going to feel very comfortable investing in volatile technology stocks.

Now, you may be wondering how to choose an investment. Most
investors and experts will recommend spreading your money over several different
types of investments in order to reduce the risk, because one type of investment
typically does well when another one doesn’t. By having money in more
than one type of fund, you’re more likely to get a decent combined return
in one category takes a downturn.

When you are ready to begin starting an investment, you should
use caution and research everything that is available to you. The above will
assist you in getting started; the rest is up to you. Getting

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