Friday, December 24, 2010

Getting Your Feet Wet – Begin Investing by Ravinder Tulsiani

Getting Your Feet Wet – Begin Investing by Ravinder Tulsiani

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. 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

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.

About the Author: Ravinder Tulsiani is a published author who has
written about personal finance, real estate, self-help and online
marketing. For details visit: