What is the easiest way to invest money for beginners? Maybe you asked that question this Sunday morning! While I am talking to a friend of mine, he asked me, assuming you are beginner, which do you think is the best and easiest way to invest cash?
I think quietly about it. That question made me feel that I am lucky. Because I realized that not all people knows how to invest money. And when I open my TV, the news is about “investment scams and fraud”.See Also: Lottery Awareness: Mega Millions Numbers Isn’t the Solution to Get Rich
So, if I am a beginner investor and to make sure that I will not get scam, I will invest my money in Unit Investment Trust Funds offered in the bank. Continue reading why I recommend Unit Investment Trust Fund.
Easiest Way to Invest Money for Beginners
My first investing experience is investing money in UITF (unit investment trust funds). It only takes few minutes to open a UITF account. You will not get scam because you are transacting inside the bank.
When I open a UITF account, I only need to bring few documents such as valid IDs and cash to invest. I prefer to invest per month. A bank staff prepared an investment opening form and make me read the prospectus. What I love in that first investing experience is that I knew my risk tolerance because the bank made some risk profiling test for me.
Other Easy Ways to Invest Money for Beginners
It is easy to spot investment scam. If your goal is not to be a victim of scam, you must ask yourself if the investment offer or the investment companies is registered in Securities and Exchange Commission.
If you want to know the background profile of the investment broker or agent, you can do so by checking it using FINRA broker check. This way, you are making sure that the broker or the agent is legitimate.
Maybe you asked, is it easy to invest money in the stock market? It is easy to invest money in the stock market and in mutual funds as well. For as long as you are willing to do the first step which is opening a brokerage account, you can invest easily.
See Also: Stock Market Investing for Beginners
Some banks in other countries don’t offer unit investment trust funds. Although it is the easiest way to invest for beginners, it is still advisable to invest money in other vehicle for diversification and asset allocation purposes.
You can invest money in the stock market, invest money by buying mutual fund shares, buying savings bonds, buying real estate properties or starting your own business. Just make sure you are investing first in yourself by increasing your knowledge. It is funny and ironic that if you invest money in the things that you don’t know.See Also: How to Invest 5000 Dollars in Real Estate