Your Questions About How To Invest

Sandra asks…

how do you invest?

what are good guidlines or teaching aides you can give someone who wants to start investing in small and big businesses

John answers:

Investing strategies vary based on what each individual wants to accomplish/gain and how they want to do it. Some people are looking for high yield short term investments, others want a stable long term investment.

It is always best to have emergency funds set aside before anyone thinks about investing, as well as three months of living expenses. If you do not have the aforementioned invest only what you can do without, as in money that you will not “miss.”

Some of the best advice I got in my life was “invest in what you love” that is one of the best strategies. If you are into cars then might be where you need to look for investment opportunities.

Hope this helps,

Richard asks…

investing??

Where can I invest to get 5% yearly return? I plan on saving about 300$ a month, but have no idea where to invest it to get a 5% yearly return. Help??

John answers:

Investing carries risk and your investments will go up and down. Over time they go up but you will have down years.

You need to assess your risk tolerance and you need to understand risk.

Otherwise, if you must have 5% every year, you are asking for the impossible.

Risk and risk tolerance:

http://money.aol.com/investing/fct1/_a/risk-and-return/20050225133909990021

http://moneycentral.msn.com/investor/calcs/n_riskq/main.asp

What you really need to do is get a good beginner’s book on investing, like ‘Investing for Dummies’

David asks…

Investing and Online Saving Accounts?

Hi im from Australia,lol
i’m dont really know much about this stuff
so i wanted to know what is investing and what do people usally invest in.
Also, whats and Online Savings account
Thanks

John answers:

Investing os when you have a chunk of money that you want to “invest” and you put it all towards something ( such as: real-estate, stock Market). The whole point of investing is chancing giving your money away now just to make a lot of money in the end. If you invest it real-estate it is like buying a house and renting it out, or buying an apartment building and renting the rooms. You buy the house and then each month you get money from the renters, it will end up paying off the money you invested and MORE! The stock Market is just about the same but much much more risky.

The link below is an online savings accept it gives you a lot of information about it!

John asks…

The Cons about investing?

What are the bad/cons about investing?

John answers:

Investing is risky. If you don’t understand what you’re investing in, and the people that you’re investing with, you could lose all of your money. Your hard-earned money could be gone.

Before you invest, you need to do your homework. If you aren’t sure, start by looking at lists of outperforming mutual funds on Yahoo. Always use a NO LOAD (that is, no sales charge) mutual fund.

And, if you’re asking this question because some friend or relative is asking you to invest in their restaurant or store or lemonmade stand, be very careful. It’s extra dangerous.

Mary asks…

What exactly is investing?

I’m not so familiar about investing, stocks, and other stuff. But what exactly is investing?

John answers:

Investing involves putting money into something in hopes of getting returns or interest in the future. One very common way of investing is through stocks. When you purchase a stock, you are basically buying ownership, or a part of the company. If you believe in a certain company, you will want to buy it’s stock because the company’s success would translate to profits for you as well.

In order to buy and sell stock, you must have a brokerage account. Everyone can invest, but you must be 18 to open your own account. If you are under 18, you can open a custodial account, which are accounts for minors managed by adults. There are many different brokers out there. I personally use Firstrade ( http://www.firstrade.com ).

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