The University of Alabama

INVESTING

 

A lot of people do not know how to invest, so they never start investing. Do not let all  of the choices and information intimidate you. If you start with the basics, you will soon be able to make educated decisions with your money.

Before you start investing, make sure you are ready. If you have credit card or other debt that you are paying over 10% on, it is better to get your dept under control first.

Investing 101

If you are a novice to investing, SmartMoney.com is a great place to start. It covers the basics such as risk management, investing theory, stocks, bonds, mutual funds, and more.
http://www.smartmoney.com/university/Investing101/

Investing for Your Future

An online study course for free! The University of Rutgers provides this 11 step program targeted towards new investors that have smaller amounts to invest.
http://www.investing.rutgers.edu/

Bonds

A bond is a debt security, or loan, to organizations ranging from companies, local municipalities, states, or the US government. You receive a specified rate of interest during the life of the bond and your investment amount when the bond matures. Bonds are an important part of financial success because they generally have less risk. However, most are not risk free. https://www.tomorrowsmoney.org/youngpeople/section.cfm/388/451

Mutual Funds

Mutual funds are financial tools that pool the money of many different shareholders to invest in different types of securities. Mutual funds give investors lower trading costs, easier access, diversification, and professional management.
http://mutualfunds.about.com/od/mutualfunds101/

You can start investing now with as little as $100. If you can afford it, these low minimum funds can get you started investing and help you gain experience and confidence.
http://mutualfunds.about.com/cs/fundfees/a/lowmin.htm

Certificate of Deposit

Certificates of deposit, commonly known as CD’s, are an option for investors that are less risky because CD’s from banks are federally insured. The lower risk generally means lower returns on your investment. However, short term CD’s around 3 months are a safe and easy way for younger people to keep pace with inflation without getting into more complicated investments.
http://www.investopedia.com/university/moneymarket/moneymarket3.asp