For 2012 and outside there are 3 very popular ways or places to invest money in stock, and your best place to invest will depend on how active you want to invest in the stock market. Do you want to try choosing your own best stock or you prefer to invest your money with funds and leave money management to professionals?
You can invest money in stock online by simply opening an account with a major discount stock broker (such as TD Ameritrade or e-Trade) and investing in individual stocks, in exchange for funds traded (ETF), or in mutual funds. You can also invest your money in inventory mutual funds and get personal attention at a low cost if you invest directly with a company without a burden such as Vanguard, Fidelity, or T rowe prices. Here are the 3 best ways or the best places to invest in stock depending on how active you want to be in managing your money.
If you really want to invest money in individual stocks in an effort to find the best stock every year your best place to invest is with discount stock brokers. Unless you really know what you are doing, I will not invest much money in individual stocks. When you invest money here requires you to stay on various things. The average opportunity for people makes money and defeats the stock market in 2012 and so on by buying and selling slim individual shares. Some investors beat the stock market.
Your second choice if you want to invest money in stock is to invest in trading stock funds or mutual fund shares through discount brokers. This is your best place to invest if you are able to choose your own funds and want to have a diversified portfolio of individual shares. Diversification decreases your risk by spreading your money. Professional money managers make stock selection decisions for you.
The third option is for people who do not want active participation in the stock market, but want help and service. Their best place to invest money in stock in 2012 and surrounding areas is through a mutual fund company without burden. Here you open a direct mutual fund account with the company fund vs. broker. Now you can invest money in a diverse stock portfolio with professional money managers who work for you. Costs for investing can be far less than you might think if you invest with the company’s funds mentioned above. Plus, you can call them and get personal attention – even if you only have a few thousand to invest.
Your main goal when you invest money in stock must produce a higher rate of return at an acceptable level of risk. Trying to choose the best stock is the best handed over to people who want to speculate. Mutual funds are designed for average investors. Your cost to invest $ 10,000 in mutual funds (with professional management) can be less than $ 50 per year with a fund company without load (without sales costs). That’s the best place to invest money in stocks that I know if you really want to put your money to work for 2012 and so on without being actively involved in the stock market.