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What is the best way to invest your money in to make money?


What is the best way to invest your money in to make money?

You should invest in stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks, as individual stocks are too risky. For most folks this means buying mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea how aggressive you want to be.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion

Buying a house instead of renting will save you a lot of money in the long run. You don't have to pay rent and you build equity in your house instead. Buying rental property can also be a good investment. However, being a landlord can be hard work, and many people are not good at it. If you don't know how to handle deadbeat renters, you can have trouble.

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planni...
http://www.dallasnews.com/sharedcontent/...
http://www.fool.com/school.htm
http://sec.gov/investor/pubs/assetalloca...
https://flagship.vanguard.com/VGApp/hnw/...

Probably the best chance to make a lot of money with investments is in the stock market. It's also the best place to lose a lot of money if you make stupid investments and buy penny stocks or stock in really bad companies.

The best way is to follow the rules of three.....invest your money like this:

a third in high risk stocks
a third in medium risk
a third in safe (US Bonds, school bonds, muni's, etc)

The thinking is that by diversifying your investments, no one sector will wipe you out. If you want high risk, high reward you can try vegas! or sell some dope, crack and heroin both have a high return on investment.

read tips on investing, stocks and more to help you better on this site

Hedge Funds.

The best way to invest money is investing in stocks.Stocks are great when it comes to good return, but risk is high, and it needs a wide understanding about the market .You can reduce the risk by diversification.

http://www.smart-investments.org/Best-St...

http://money-review-site.com/shares.html

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