11/3/2009 9:00 AM ET|
Open an account and get started
If you're new to investing, it can look complicated. But it doesn't need to be. This is part 5 of 5 parts.
The editors at MSN Money have put together this Beginner's Guide to Investing to help you start putting your money to work.
There are different account types for different investing 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:
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.
Individual retirement account (IRA)
Make the maximum contribution to an IRA, which allows you to put some of your income into a tax-deferred retirement fund to grow tax-free until you retire. You won't pay taxes until you withdraw your funds.
Start a 529 plan to save for your kids' college expenses. Be warned that these plans don't always live up to the hype. Though they remain a good choice for some. Click here for more on the pros and cons of 529s.
Open a brokerage account to start investing for goals that are more than five years in the future. Want to build a vacation fund? Use investing profits to upgrade your kitchen? This is the place.
VIDEO ON MSN MONEY
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'