INVESTMENT

A Beginner's Guide to Investing If you're new to investing, it can look complicated. But it doesn't need to be. Here is a simple a Beginner's Guide to Investing to take you, one step at a time, from determining your investing budget, to deciding what to buy. How much to invest? Your investment strategy will depend partly on how much money you want to put to work. A few options: $100 a month or more, with no lump sum It may not seem like a lot, but even small regular investment in mutual funds or exchange-traded funds can add up. A lump sum of less than $5,000 You have more options in this range, as many mutual funds have minimum-investment requirements of $500 to $2,500. The key is to make sure all your eggs are not in the same basket. Invest in five or six different types of mutual funds. If U.S. stocks aren't doing great, your holdings in international stocks or real estate may help keep your overall portfolio afloat A lump sum of $5,000 or more The trick here is not to jump into the market all at once, potentially putting all your money in just before stock prices tumble. One approach: Put one-twelfth of your money into the market each month for a year, a technique known as  dollar-cost averaging. The one of fund options For some, one mutual fund is plenty to get started as an investor. This is the best option if you haven't got a lump sum to invest. A number of fund companies offer one fund solution, which themselves own other mutual funds. Some companies even tailor the funds to your desired retirement age. Want to retire in 2030? You might consider the Fidelity Freedom 2030 (FFFEX) fund, which will keep more of your money in stocks now, when you can take on a little more risk, and put more conservative bonds in the portfolio as you near retirement. One of offerings is from T. Rowe Price, which have solid performance records and charge reasonable fees. T. Rowe also will allow you to start investing with as little as $50, adding $50 more each month. Build a portfolio Choose several mutual funds that will cover all your investing bases. By investing in different size companies, various sectors of the economy, and other parts of the world, you reduce the chance that problems in any one area will sink your investing goals. To built a starter portfolio of funds main criteria should be: Strong, consistent performance, low fees and a stable, investor-friendly management company standing behind the fund. You can build this portfolio with as little as $10,000 to start.   Fund name   Ticker   % of portfolio   Min. investment Vanguard Index 500   VFINX   30%   $3,000 Vanguard Total Intl Stock Index   VGTSX   20%   $3,000 Third Avenue Small-Cap Value   TASCX   20%   $1,000 Harbor Bond   HRBDX   20%   $1,000 Alpine Realty Income & Growth Y   AIGYX   10%   $1,000 Open an account and get started There are different account types for different goals. Is this fun money, set aside to build a vacation fund? Or will you be buying groceries with the investment returns when you're 85? Here are your main options: 401(k): If your employer offers a 401k or similar plan, make sure to take full advantage, especially when it comes to the free dollars available in the form of a company match. IRA: Make the maximum contribution to an IRA, which allows your money to grow tax-free until you retire. 529: Start a 529 plan to save for your kids' college expenses. Brokerage account: Open a brokerage account to start investing for goals that are more than five years in the future.