Smart Ways for Students To Invest Money

| September 14, 2012
Mutual Funds for Dummies ... U.S. Funds at War...

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For college students it seems very difficult to save and invest money. There is no easy way to invest money. But, if you start investing from an early age then it will help for your financial development over the years. There are ways to invest but before you start investing clear off all your debts. You can do this by paying more than the minimum amount due each month and ensure that you pay on time. If you have any PPI (payment protection insurance) policy on your loans try to reclaim them. These days many PPI claims management companies emerged to help you to reclaim the mis-sold PPI. The money claimed can also be used for investment. Below are some of the ways to invest money for students.

Stocks

Most of the students are familiar with stocks and have some knowledge on it. You can make use of this to invest your money. To start investing in stock markets you need to have a custodial account. These custodial accounts must be opened by a parent or guardian. Some brokerage firms will offer custodial accounts at a cheaper cost. Parents or guardians should guide these youngsters in reviewing potential trades and in submitting the correct trade orders.

Bonds

Bonds are a good investment vehicle for students. These bonds are backed by various companies and also by the government. Bonds backed by the government are the safest and easiest way of investment. These are the long term obligations that a company or government should pay to the bond holders. You will be paid the principal amount and interest on the amount on the date of maturity.

IRA

Open an IRA (independent retirement account) and start investing. The amount invested in IRA will allow you to lead a comfortable retirement. You can also gain tax benefits by investing in IRA.  Ensure that you are not withdrawing any money from this account. If you withdraw you may lose tax benefits on IRA. So, start investing now in IRA for a better retirement.

Mutual Funds

Mutual funds allow you two way investments. You can invest in a group of stocks or bonds of your choice. You can start your investment in mutual funds by paying a minimum deposit of £100. You should be very careful while investing your money. There is a chance of losing money if you invest in a poor mutual fund. Ensure that you don’t invest all your money in one mutual fund.

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My name is Sarah.  I am a tech writer from UK.  I am into Finance.  Catch me @financeport

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