Thursday, March 8, 2007
stock investing basics
Stock investing basics.
The basic stock investing idea is to buy a diverse portfolio of stocks. You have 4 types of basic stock investmenst to choose from.
The first basic stock investment is a mutual fund. You buy shares in a fund that holds mutiple stocks and companies in a single fund. Basicaly you buy stocks in mutiple companies when you buy mutal funds.
Mutual funds have any type of stocks you could want. They have stocks in a sinlge sector like oil to stocks in one country. the best mutual funds invest in all tpes of companies not one sector. This makes the investment haev less risk.
The nest basi stock investment is called a drip. Drip ares are dividend reinvement programs. You buy shares in One comapny and they hold the stock for you. You pay set fee for them to hold the stock and buy you more. Every didvend paid by the company is reinvested in more stocks in that company. This is one of the simplest stock investments thier is. The only problem is if that company stock goes down you get a bigg loss unless i goes back up.
The next basic stock investment is a online brokerage. You put so much money in a account and pick what stocks you wnat and buy and sell them. You control the stocks and when to buy or sell your investments. If you work hard at it and do well you can make alot of money. Most people are better with a mutual fund because they invest the money for you.
The last stock investments are retirement accounts. They are iras, pensions and 401 ks. Pensions and 401k's are handled by your company and sometimes they match the money you invest. If you have one where you work invest in it. You get money from your comapny so your ahead of the game.
Ira's come in 2 forms. A roth ira is popular because you pay no taxes when you retire on the money. The regular ira is nice if you pay alot of taxes now you can reduce your taxes by adding to it. Iras can be a drip or mutual fund or even a online broker account you have.
The first stock investing basics is invest in youyr future. Get a retirement account as soon as you can. Then start a investment account for saving for a home or other things. You can even set up investments to make you money paid every month. Those investments usualy are in bonds. Some mutual funds have investments called income funds and they invest in bonds and stocks so you get higher returns on the investment.
We will discuss bond investments and some more mutual funds in the next posts on are site.
Remember the basic stock investments is to get started. No matter how small or how big you have to start investing in order to have more money down the road. Start simple and get retirment account set up. Then invest for other things you want.
The basic stock investing idea is to buy a diverse portfolio of stocks. You have 4 types of basic stock investmenst to choose from.
The first basic stock investment is a mutual fund. You buy shares in a fund that holds mutiple stocks and companies in a single fund. Basicaly you buy stocks in mutiple companies when you buy mutal funds.
Mutual funds have any type of stocks you could want. They have stocks in a sinlge sector like oil to stocks in one country. the best mutual funds invest in all tpes of companies not one sector. This makes the investment haev less risk.
The nest basi stock investment is called a drip. Drip ares are dividend reinvement programs. You buy shares in One comapny and they hold the stock for you. You pay set fee for them to hold the stock and buy you more. Every didvend paid by the company is reinvested in more stocks in that company. This is one of the simplest stock investments thier is. The only problem is if that company stock goes down you get a bigg loss unless i goes back up.
The next basic stock investment is a online brokerage. You put so much money in a account and pick what stocks you wnat and buy and sell them. You control the stocks and when to buy or sell your investments. If you work hard at it and do well you can make alot of money. Most people are better with a mutual fund because they invest the money for you.
The last stock investments are retirement accounts. They are iras, pensions and 401 ks. Pensions and 401k's are handled by your company and sometimes they match the money you invest. If you have one where you work invest in it. You get money from your comapny so your ahead of the game.
Ira's come in 2 forms. A roth ira is popular because you pay no taxes when you retire on the money. The regular ira is nice if you pay alot of taxes now you can reduce your taxes by adding to it. Iras can be a drip or mutual fund or even a online broker account you have.
The first stock investing basics is invest in youyr future. Get a retirement account as soon as you can. Then start a investment account for saving for a home or other things. You can even set up investments to make you money paid every month. Those investments usualy are in bonds. Some mutual funds have investments called income funds and they invest in bonds and stocks so you get higher returns on the investment.
We will discuss bond investments and some more mutual funds in the next posts on are site.
Remember the basic stock investments is to get started. No matter how small or how big you have to start investing in order to have more money down the road. Start simple and get retirment account set up. Then invest for other things you want.
Labels: stock investing basics
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