Investing for Dummies:)
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This is a thread that I've been meaning to start for a while now. Sion and I have been in communications
to get the information out there for those of us interested in increasing our bottom lines by building
a nice financial portfolio for the future. Sion will be joining me in a few days to drop knowledge on the higher risk investments such as in the Stock Market. I will be posting the basics that anyone needs to know to get started. I know a lot of people think you have to have, or make a lot of money to begin investments but that is not the case. Also, many companies have 401k plans that help match employee contributions, so they are an excellent way to get the ball rolling and it's how I began building my portfolio.
Now, as the thread begins I will post an introduction, and then I will break things down more as the thread progresses. Feel free at any time to ask questions. Seeing as though we are now in tax season a lot of posters are getting hefty financial returns. I know it's nice to see that money in your account, and there is a rush to spend it, but take a sec and consider before you blow it on sneakers or throw it up in the air at some strip club(no diss towers:p). In the next 5 years the material things you buy will be of little to no value, but if you take a bit of that money and invest it in a bond or a CD, it will still be there increasing in interest. It's all about planning for the future, and that's something that young people need to look into more, instead of always living for the day. I'll also be posting about real estate since I am currently in the middle of closing on a condo I'm purchasing. So let's get it poppin.....and to any other financial guru's feel free to drop knowledge as well. I hope this can contribute something positive, and of actual substance to this forum. Get Money:cool:
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.
As a beginner in investing, 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 don’t, 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.
It’s 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 won’t 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 CD’s 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. CD’s 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.
to get the information out there for those of us interested in increasing our bottom lines by building
a nice financial portfolio for the future. Sion will be joining me in a few days to drop knowledge on the higher risk investments such as in the Stock Market. I will be posting the basics that anyone needs to know to get started. I know a lot of people think you have to have, or make a lot of money to begin investments but that is not the case. Also, many companies have 401k plans that help match employee contributions, so they are an excellent way to get the ball rolling and it's how I began building my portfolio.
Now, as the thread begins I will post an introduction, and then I will break things down more as the thread progresses. Feel free at any time to ask questions. Seeing as though we are now in tax season a lot of posters are getting hefty financial returns. I know it's nice to see that money in your account, and there is a rush to spend it, but take a sec and consider before you blow it on sneakers or throw it up in the air at some strip club(no diss towers:p). In the next 5 years the material things you buy will be of little to no value, but if you take a bit of that money and invest it in a bond or a CD, it will still be there increasing in interest. It's all about planning for the future, and that's something that young people need to look into more, instead of always living for the day. I'll also be posting about real estate since I am currently in the middle of closing on a condo I'm purchasing. So let's get it poppin.....and to any other financial guru's feel free to drop knowledge as well. I hope this can contribute something positive, and of actual substance to this forum. Get Money:cool:
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.
As a beginner in investing, 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 don’t, 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.
It’s 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 won’t 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 CD’s 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. CD’s 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.
Comments
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what if i dont trust the banks is there like a separate entity that accepts my money and stores it away to make interest?
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Damn girl...space that ? out..lol
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I have a CD moving and a 403B. I would suggest a Secured Checking Account with Credit Union
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What's the percentage you are getting for your CD... if you don't mind me asking?
It's bad, I made the cd when I was a Frosh, it's like .04 or something like that, and that's because I had going on a six month rotation. As soon as the maturity date hits I'm doing the five year. I keep forgetting about it until I get a letter lol -
what if i dont trust the banks is there like a separate entity that accepts my money and stores it away to make interest?
Paypal has a Money Market it used to be good...not so much anymore -
CD's take too long and still don't really make nothing.
I'm thinking about getting an ETF though. That individual stock ? is too complicated and I don't have time to keep up like that. -
This website has some good info.
http://www.bargaineering.com -
trill ?
looks like we might have enough interest in here for another ic stocc challenge b -
good lookin out sion and kimi on this thread. been wanting to learn about the stock market and get my $$$ up. i appreciate the knowledge you both are droppin...keep bringing it
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*sits and waits*
