Investing is often something that people want to do because they may know someone who has made a comfortable living with investments or may have even retired on the investments they’ve made. But the question is how to invest? Should you go it alone and invest with some Internet trading house or should you get a stock broker?
So if decide to invest by yourself using an online source, there is a huge learning curve. But even If you decided to invest with a stockbroker you are going to have to do research to find a reliable stock broker. It really can seem overwhelming.
This article will give you three ways to invest $1000. This can seem like a lot of money and it is, but if you are careful and learn how to invest with caution and logic, you will see your $1000 grow, not shrink.
#1 Stock Investing
The thing about having a stock broker is the fees can really add up. If you decide to try and save on broker’s fees you can buy more shares. There are many companies to choose from when buying shares.
There are other things to consider besides cost of share when you invest on your own. Check the terms and make sure there are no inactivity fees, minimum stock purchase and enrollment fees.
For example Disney requires and $10 enrollment fee and a minimum of $100 investments. So while you will be saving on brokers’ fees, there are little details you need to look into to make sure you will not get an unexpected fee in the future for inactivity, etc.
#2 How to Invest with a Broker
If you want to find a stockbroker to deal with the details of trading there is such a thing as a discount brokerage house. The purpose of the discount broker is to save you money on the transaction fees.
The trick to finding a good discount broker is to investigate the following:
- how much in fees they will collect;
- how accessible they will be to you as far as communication and also getting money to you.
Once you feel comfortable with what you find out about the discount broker, invest the minimum amount possible to see how it goes before you invest your entire $1000.
#3 Certificates of Deposit
Investing in Certificates of Deposit or as they are commonly known, CDs, is a very safe investment. However, it is also an investment that will not yield a great gain.
When you invest in a CD, the money cannot be withdrawn until the term of the CD is up. For example, typical terms for CDs are 3 months, 6 months, 9 months and 12 months.Each term yields a large percentage rate.
If a 3 month CD returns a 2% percent rate, a 12 month CD may return a 3% rate. However, if you withdraw the funds before the term, you will end up paying very large early withdraw penalty fees.
Therefore, if you are interested in CD investing, make sure you do not need the money before the terms are up. On the other hand, this is a very safe investment and you will not lose money at all with this type of investment.