How to Invest $50-$5,000. - book reviews

Most people have only a vague idea of how to invest their money. They know about bank accounts, they have some idea about stocks (they go up and down, and up is better), but they know almost nothing about the types of investments available. Even worse, they don't know the risks and rewards of the investments that they already have.

Investing is scary even for the big players. Calculating the future risks is nearly impossible and causes much of the stress associated with money. But staying away from all investments is even scarier, particularly when inflation eats away at the value of your cash every year. Dunnan replaces the fear with facts about what you can do with your money.

This book explains all the common investments that you can make, rates their risk, and explains how to pick investments for yourself. It is arranged by amount that you want to invest ($50, $500, $1000, $2,500, and $5000), but most people will want to read the whole book because many investments span the ranges. This is the best guide for novices I've found. --Paul Hoffman

Sometimes small investors feel their options are limited. They're not. Over two dozen investment vehicles are described in detail in this book. We will show you how to take advantage of each one. In fact, you'll soon discover that all the financial world is wooing you and your money. Banks, brokerage firms, insurance companies, and financial planners are vying for your cash -- be it $50 or $5,000. In fact, every major financial institution has a new gimmick to entice the novice as well as to hold on to the seasoned client.

The value of a [money market mutual] fund is that one large pool of money can be far more effectively invested than hundreds or thousands of small sums. Each investor, no matter how large or small his investment, then owns a proportional share of the fund, and receives a proportional return, without discrimination based on the number of shares owned.

Buying shares in a mutual fund is often a good alternative to trying to pick from among the thousands of stocks available. For the small investor, the new investor, and the very busy investor, mutual funds offer diversity, professional management, liquidity, and relatively low cost. Compared with other similar investments, they also offer the possibility of price appreciation. Some funds have no minimum investment amount; for others it is as low as $100.

How to Invest $50 - $5,000

Nancy Dunnan, 1991; 124 pp.

$8 ($11.50 postpaid) from HarperCollins Publishers/Direct Mail, P. O. Box 588, Dunmore, PA 18512; 800/331-3761 (or Whole Earth Access)

COPYRIGHT 1992 Point Foundation
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