What's a good way to start learning about investing?

I am going to inherit some money in about 6 months. Eventually I want to use it as a down payment for a house. Until then what can I do to earn a little profit with it with out too much risk? I'm not trying for a big return just something relatively safe. If you have any suggestions could you please tell me where I can find out more about your suggestion. It will be about 50k.

Thanks in advance.

put it in a CD or a high interest savings account!

check this web site and subscribe to their e-letter. Really, this is no joke.

There are thousands of people just like you that are, or were looking to invest and those that did buy Mutual Funds. One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no experience investing.
Fund companies have an entire array of products many will fit your needs.
You can go to the MSN.Money website it has an entire section on mutual funds. Read about the various funds 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. The service and information they provide is all free and you will find it helpful. And remember, keeping you money in a bank or bank product is not investing.

Start your life in the investment world by educating yourself. The first investment you should make is in yourself and the best investment you can make is in education.

Start your investing/trading education by learning why you should invest, and the importance of being able to make your own decisions. See how the pros have done it. Start by reading, What Works on Wall Street by James O'Shaunessey, Beating the Street and One Up on Wall Street both by Peter Lynch, The Warren Buffett Way by Robert Hagstrom, Trading For A Living by Alexander Elder â€“ â€œHow to Make Money in Stocksâ€ by William Oâ€™Neil and The Disciplined Trader by Mark Douglas.

Get into the habit of making daily visits to some websites like MSN Money and Yahoo Finance. While at MSN read the Commentaries by Jim Jubak, Jon Markman, Harry Domash, and Liz Pullman Weston. Following the strategy lab analysts to get a feel for what the proâ€™s are doing and why. This site has some basic information for beginners. If any site offers free information, take it.
Other website that can provide instructions and help with procedures and terminology are Investopedia.com, Stock Charts.com, and 1source4stocks.com
Visit some of the more professional websites like Zacks.com, Smart Money, Schaeffers.com, Trading Trend, Trading Markets, these website will have advertisers who are worth looking into also. And remember, if they offer free information, get it.

Attend all the free seminars you can, just be careful and donâ€™t get pressured into anything you really donâ€™t want or need. Most schools offer courses in finance and economics, but very few will have courses on the mechanics of the investment markets, if they do try taking the course. You may want to consider on-line courses, the New York Institute of Finance use to have such courses. Try to get some fee information from the stocks exchanges they all have (had) free booklets, SIAC and some of the regulators (NASD SEC MSRB CBOE) may provide some free literature.

Seek an investment advisor. BUT...having said that...you'll want to stay OUT of the regular stock market.

Over the next year, you're looking at lots of volatility - too much risk for you. You'll want to explore Bonds, Bond funds, T-Bills and even some "Super CDs."

Consider how soon you'd want to access your money, too. If you don't want to have to "lock in" to a 6-month or 12-month time frame, a Money Market may be a good option for you - most of these let you take out the money as you wish. This is called "staying liquid."

A licensed financial advisor can help. Again, I caution you NOT to play the market - especially if you're planning to use the money for a house down payment in the next year or two.

(By the way, that is a smart idea, as this is a buyer's market for housing, and interest rates are still relatively low.)

Don't blow the cash! Good question!

There is no such thing as a big take with little risk or everyone would do it. One usually negates the other.

I don't know where you live but in many areas the investment in a home is #1. I live in the San Diego, Ca. area and housing prices are a great investment "...if you can afford it." Homes here are still expensive but in comparison to where they were 3 yrs. ago they're a great bargain. Not only that but you get yearly write offs on your taxes.

If you want a particularly safe investment, follow food product companies. Can't live without 'em. Actually liquor companies might be good as well. People drink to celebrate the good times and drink to forget the bad times.

Read the investment magazines, "Money Magazine " and "Kiplinger's" they're writen so it's easy to understand. (go to the library and look at these magazines or buy one at your local book store. )But remember that everyone is reading them at the same time. It's best to get in before most everyone else does. It will give you much needed insight before you invest. Also- Diversify but not too much. $50,000.00 sounds like a lot but. Don't bother putting $3,000.00 or so into one investment etc... consider about $8,000.00 or more per investment. Consider "funds." Be cautious, the ecomomy is at it's worst." A bank acct. pays almost nothing. Don't just sit on it for years earning 2 % interest while housing prices go up 15 % or more.

Also, as far as Annuities go... don't consider it if you plan on using the money any time soon.

PS. Don't trust every broker. They're more concerned about their commition than anything else. Also, don't rush into anything. Stick it in a 4 month acct. if necessary until you find the right investment(s).

Hello,

I also had a similair problem as you have.
I had a good amount of money, and wanted it to grow.
So I looked around on the internet to find something that is:
1) giving me great returns towards a relatively small risk

2) Professional people who know what they where doing with my money.

I'm glad to say I finally found a moneymanager who is capable of giving me good returns and give me a great support.
On this blog you can follow up all the results that he is making:
http://my-robottrader.blogspot.com/

My money is working for me, in three months time I already have a ROI of 89%.
So you don't hear me complaining!
Annyway if you would like to get in touch with my moneymanager to have some more information feel free to contact me you can send an email to me at derrekmay at gmail.com.
Then I'll give you the email adress of my moneymanager

Hope this has helped you!

An excellent book is "Investing For Dummies." (no joke - its a great book).

In the beginning â€œnewbieâ€ traders and investors DO NOT INVEST THE FIRST cent or dollar. No amount of money.

In the beginning you LEARN HOW:
A] the stock market works.

B] to invest in many, many various ways.

C] to properly trade

D] many other concepts and aspects.

Beginning or novice ['newbies"] investors and traders ALWAYS make mistakes. In fact, throughout a person's avocation or hobby to do trading, he/she will make mistakes.

In the very beginning, you READ AND LEARN about the market and how it works:
Read "Investing for Dummies"
As you are reading and doing research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before.

You can usually find excellent, easy-to-understand definitions of many financial and investment terms by going to Investopediaâ€™s dictionary.

http://investopedia.com is a free site. Itâ€™s recognized by Y! A as a "Featured Knowledge Partner".

It probably wonâ€™t be long when youâ€™ll feel youâ€™re ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in. It also has a free, paper trading platform. You can set up a virtual account and almost trade as though you were trading with real money.

http://finance.yahoo.com is also recognized by Y! A as a "Featured Knowledge Partner"
END E-MAIL #1
The thought processes are:
1] to have more successful trades than failing trades.
2] to minimize the losses of those losing trades.
3] "To live to trade another day." Having enough money in the trading account to return to the market.

ALL this is accomplished by a few true expressions used on Wall Street:
Some trading expressions come to mind:
A] "On Wall Street there aren't any gifts."
No one gives anyone else anything - not even stock tips.

B] BUlls [BUyers] earn money.
BEars [SEllers] earn money.
Pigs get fat.
Hogs [Greedy Traders] get slaughtered. They lose the money in their trading accounts.

C] "Trees don't grow to Heaven. Neither do stocks or any other investments."
In other words: What goes up, MUST come down!

D] "Plan your trade. THEN trade your plan!"
Have a trading plan with rules for that plan for each strategy.

$____ may not be enough for you to get started. I want everyone to know I DO NOT own any portion of this manâ€™s estate, nor am I associated with him or any one else connected with him in any way. I am not part of the publishing company or an agent or anything else. This man does not know me from Adam AND I donâ€™t know him. I know of him and the wonderful book he wrote. THIS IS NOT SPAM.
You should buy a copy of this book:
â€œThe Richest Man in Babylonâ€ by George S. Classon. You can get the book on http://amazon.com
Its very easy to read. Its very easy to follow. You can write in it. You can make notes in it. All you have to do is to read five [5] pages - Letâ€™s count
1 - 2 - 3 - 4 - 5 pages of this book - or any book - each and every day.
OR You can leave it sit on the shelf, on a table or on the floor and let it collect dust.

Thanks for asking your Q! I enjoyed answering it!

VTY,
Ron Berue
Yes, that is my real last name!

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