Investment Starting Point

If you were confused when the right time to get your investments started, maybe, the right time to invest is NOW. Why not? You can get started right away without having a lot of knowledge about some type of investments. There are several investment options as your starting point, with stock and money market as the most recommended. Just get your feet wet while still playing safe. 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. That is a lot better than get bored.

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.

The key is keep learning about what you’re doing. One or all of these three types of investments is the best starting point. You still have the chance to earn some money (maybe not much, but hey, this is a start), while you continue your daily work. Learning by doing is the best way to learn about the investment.