I. Write 250 words about tips for beginning investor, you can use one source, an article from the web or library and identify URL. Please don't copy paste from the web.
II. Then comment on this second post about Which tips do you find helpful in this post?
Janet Bodnar, who at the time the article was published in 2015 was the editor of Kiplinger published a response that she gave to her son when he asked for advice for people who are looking to get started with investments. In this format, the advice from mother to son also became advice from an expert to beginner. Bodnar gave 5 tips to her son, to use as general guidelines when you are just starting out in investing.
The first tip given is to put safety first. There is no such thing as a "sure thing" and the risk that goes a long with playing the stock market can result in losing money. Before you start investing make sure that you have a pretty good reserve piled up in your savings account. Bodnar recommends having at least 6-12 months of expenses saved just in case of emergencies.
Bodnar follows her first tip with solid advice, literally establishing a solid base. She points out that you can take more risks with money that you aren't intending to use right away like your 401k. She advises starting with investments in mutual funds, so that you can create a more diversified portfolio and thus spread your risk thinner. Index funds are recommended due to their low fees.
Third to make the list of recommendations to her son was to have to "aim for a target". This is about a target-date fund. This is a way to invest in diverse types of stocks all in one place, and they are designed to relate to the date of retirement you are aiming for. These funds grow more conservative as the years go on getting closer to that long-awaited retirement date.
The fourth item Bodnar advises is to keep it a little spicy. The best way to do so, is to choose a good manager for your funds. These managers are using their own judgment, so it is important to do research and choose the best manager for what you are looking to achieve with your investments.
Finally, Bodnar concludes her expert motherly advice by saying it is better to spread your investments out, using a mutual fund. Then if you find yourself with some extra money get a little riskier if you would like and invest in stock(s).