Basics of Investing

Archive for March, 2009

Question: how should i invest my sons money so it will make the most interest with no risk ex. stocks?

my son is 7 weeks old i want to invest his money but i’m not sure of the best way to do it so it gets the most interest with no risk of loosing money like in stocks. i think i’m either going to go with series I savings bonds OR 60 month cd’s any advice on which would be the best investment?
i would also like to add that i have a meeting set up at my credit union but i know they push there own products like cd’s and series I savings bonds are a goverment product even know it goes through the bank they don’t benifit from it like they would a savings account or cd.
well in his 7 weeks life spand he has incurred $200 so i was thinking about buying $100 cd’s for every $100 he get untill it’s $500 then when he has reached $1000 putting it in a money market. it really isn’t for anything it’s his money untill he is 18 i just want it making money instead of sitting in a savings account barley making anything

Answer: Without having more information about your personal information, such as age, current income and other data such as Risk Tolerance, martial status, and demographics it would be very inappropriate for me or any other responsible person to provide specific investment information in this type of media. And it would not be prudent for you to accept any specific investment advice from unknown individuals here at YA or a similar media.

There are many people just like you that are, or were looking to invest and those that did bought Mutual Funds and/or Exchange Traded Funds (ETFs). One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no investing experience. Once you feel you at least have an understanding of investments you should look into ETFs which are similar to mutual funds but are traded on the exchanges.

Mutual Fund companies as well as ETFs have an entire array of products many will fit your needs. You can go to the MSN.Money website
http://moneycentral.msn.com/home.asp it has an entire section on mutual funds and Exchange Traded Funds. Read about the various products and in doing so you will be getting investment ideas and at the same time educating yourself about investing.

You could also contact the funds companies for more information. I have found that Vanguard & Fidelity can meet your needs for mutual funds. The service and information they provide is all free and you will find it helpful.

Finance & Investment Tips : Finance: Bonds