Docstoc

INVESTMENT

Document Sample
INVESTMENT Powered By Docstoc
					Many people are looking for a financial 'leg-up' following the recession
that has gripped the globe in recent years, and this has led a number of
small investors and individuals to ask "how to invest my money". Perhaps
you are among them. If you are interested in socking away some money in
an investment that will be lucrative for you in the future, or that can
help you to earn passive income now, then the tips that follow will help.



How to Invest My Money in a 401(k)

The first investment that any small investor should consider is a 401(k)
account through their employer. This type of account allows you to save
some of the money that you earn before taxes in a retirement account.
Many employers match any 401(k) contributions that you make, which makes
saving with this type of an account one of the best ways to invest. After
all, why turn down those matching dollars? Don't leave money on the
table. If your company offers a 401(k), you should read up on it and
consider participating.

How to Invest My Money in an IRA

You can also invest your money in an individual retirement account or
IRA, in addition to your 401(k), or perhaps you will want to invest in an
IRA because your company does not offer 401(k) as a benefit. An IRA can
be started anytime, and even if you are a self-employed independent
contractor. Funds that are deposited into the account are after tax, but
most taxpayers can deduct contributions to an IRA from their taxable
income.

How to Invest My Money in Stocks

You can also invest your money in the stock market. To do this, you will
need to find a stock brokerage company that you like and open an account
with them. Unlike contributions and deposits to the IRA or 401(k), there
is no restriction for withdrawing from this type of account. This makes
it simpler to access any funds that you make with the purchase and sale
of stocks that the broker buys and sells on your behalf. When buying
stocks, keep in mind that you can lose it all, make some money, or make a
lot of money, but there are no guarantees.

How to Invest My Money in Treasury Bonds

Many investors find that the return that is offered by the U.S.
government on U.S. treasury bonds (usually five percent or more) make
them a lucrative way to earn some interest income. Although it can take
seven years or longer for the bonds to reach maturity, there is no risk
when buying t-bonds because they are backed up by the government.

How to Invest My Money in Deposit Accounts

It is worth noting for the small investor that there are some investments
that can be made at their local bank, like certificates of deposits, for
example, that allow them to invest without fear of losing their money.
This type of deposit account investment guarantees a certain amount of
interest will accrue on the deposit periodically and the deposit is
backed by the FDIC for deposits of a quarter-million dollars or less.

For help in managing your Personal Finance or for more information on
Finance, Investing, Mutual Funds, and more, check out
http://www.personal-financial-management.com

				
DOCUMENT INFO
Shared By:
Tags:
Stats:
views:4
posted:9/5/2012
language:
pages:2