Testing the water with investing.

I’m always being asked about how to start investing. Well you don’t have

to start straight up using the stock market. Following are some fairly

basic and safe ways to start investing for your future.
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.
That should be enough to get you started for now. Once you get the feel
for investing I’m sure you will want to go a lot further.

MR ed. Expandingwealth.com