If you are ready to get your investment portfolio on a roll, you can actually start immediately without having a whole lot of stock market knowledge. You can begin investing by making conservative investments that bear a low risk tolerance. Going this direction gives you an opportunity to make money while your study more about the markets and how investing works. Starting with conservative, low risk investments will help you build a solid financial base until you are ready to expand your asset portfolio.

Start out with an interest bearing savings account. In fact, you may already have one. If not, you should. A savings account can be opened at pretty much any bank even the same bank where you do your checking. A good savings account should pay you back between 2 – 4% on the money that you have in the account.

I know, I know, it’s not much, unless you have a million dollars. However, it is a start and it allows money to make more money.

Next, try investing in some money market funds. These also can be setup through your local bank. Money market funds will usually have higher interest payouts than the normal savings account, but they work very much the same way. Money market funds are generally short term investments, so your money isn’t tied up for any long period of time. Like savings accounts, money markets funds are another case where money is making money.

Certificates of Deposit(or CD’s) are also sound investments for beginners and come without risk. The interest rates on CD’s are typically higher than those of both savings accounts or money market funds.

When choosing a CD you’re able to select the duration of your investment for example, 5 or 10 years, and the interest will be paid regularly until the CD reaches maturity. CD’s can be purchased at your bank who will insure them against any loss. When a CD reaches maturity, you receive your original investment, and in addition to the interest that the CD has earned.

If you are a beginning investor, one or all of these three investments are a great starting point. All three will allow your money to begin making money for you while you do your homework and learn more about investing in other areas.

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This entry was posted on Thursday, November 29th, 2007 at 1:09 pm and is filed under General Investing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.