- Personal Finance
3 Best Places to Invest Money in Stocks
There are many ways to choose to invest in the stock market. Many people choose different ways based on their personal knowledge, skill, and risk that they would like to take. You can invest the money yourself, invest in a mutual fund, or have it professional managed by a broker.
Today it is really easy to get involved in the markets. There are a number of online brokers that will for a small fee for a trade allow you to invest in any type of stock, mutual fund, EFT, or options. This is one of the best places for individuals who want to manage their own money to invest in. These discount stock brokers provide you very professional trading platforms that you can use to trade. They provide a tremendous amount of information about individual companies. Things like analyst reports, company financials, graphs and much more.
You can invest money in stocks online by simply opening an account with a major discount stock broker (like TD Ameritrade or E-Trade) and invest in individual stocks, in exchange traded funds (ETFs), or in mutual funds. You can also invest your money in stock mutual funds and get personal attention with low cost if you invest directly with a no-load fund company like Vanguard, Fidelity, or T Rowe Price. Here are the 3 best ways or best places to invest in stocks depending on how active you want to be in the management of your money. This also requires a significant time commitment from you as well. You have to monitor and watch the stocks you invest in to keep from losing money.
If, you are someone that still wants to trade on the stock market but does not want t pay a broker and still make a profit there are options. The best options are to pool your money together with like minded investors and invest in a collection of stocks. These are called mutual funds. These funds are a distributed investment that is managed by a professional broker that is traded just like a stock. You buy shares in the mutual fund and depending on the mutual fund you invest in can be used for growth, income, or high yield dividends. This is a great way to invest without paying a broker but without having to keep an eye on your investments on a daily basis.
Then of course there is at least one more option if you do not like either of them. It is to trade with a professional broker. These professional brokers get paid either by commission or by a percentage of your total portfolio to manage it. There are large financial companies that specialize in taking people portfolios and managing it for them. Then can be a lot of relief because you do not have to keep an eye on it yourself. They will send you updates quarterly or monthly depending on their practice and you can still make individual trades with them if you like. There really are no restrictions but having the solid backing of a financial account manager that you trust can help you sleep at night.
The worst thing you can do is not let your money grow. Putting it in your mattress will only allow you take out as much that is in there so it must grow so that can realize your dreams. It could be as simple as putting your kids through college, retirement, or a vacation.