Most people don't consider savings, cd's, mutual finds, 401k's, and other retirement plans investing; but rather saving for retirement. Some mutual funds that are above normal risk factors may get the title investing, but most easy-mode long term savings accounts with minimal risk usually serve to only beat out inflation and provide a slight return.

When looking for mutual funds or fund companies the biggest key in maximizing your ROI (Return on Investment) is to look for that funds management or maintenance fees. You'll also want to research what type of field / stocks the mutual fund manager is investing in and look at historical returns (these don't in any way guarantee future returns).

There are quite a few books to start reading, for beginners, maybe pickup Rich Dad Poor Dad; if you are hardcore you could pickup The Intelligent Investor. There are a variety of books by Peter Lynch you could also grab for stock related information. Please do not get anything by Suze Orman or however you spell your name, Jim Kramer is another name to avoid, those are the hot TV show stars.

You want a really awesome idea? If you live in the United States; convert all of your money into Canadian and go into Canada and open a savings account there. Not only will you gain 8-16% a year when you convert it back into US money from inflation but you will also gain 3-4% from the canadian savings account and they are insured by Canada up to 60,000 canadian dollars per depositor. You will need a passport and some other documentation to open one, but what a sweet no risk way to hedge inflation and make a little return (or have money to run to Canada if the US housing market crashes all the way). I watched the exchange rate go from around 9.5% to 1% in about 6 months recently.

I will check out the books you mentioned. I read the reviews on the Rich Dad Poor Dad book, and I think I will pass on that one. I'm going to pick up The Intelligent Investor tomorrow though.

As for traveling to Canada... I will lose money in the exchange process and will have to finance the trip. Not a good plan to me.

Hi sleepyboy and welcome to The Finance Forums.

I am 22 years old and I live in Los Angeles. My parents will not provide any of their information to apply me for financial aid. They think that college is a waste of time and does not want the govt. to know his info. I am trying to go to school and work at the same time. Since they will not help, I can't get financial aid and I am going crazy. Does anyone know of some grants or loans for young African-American ladies that will help me out?

I would put all your money into commodity based assets or stocks.

Firstly, let me congratulate you on (a) saving and (b) considering investing so much by 26.

At your age. I had already bought a car and investment property (by 36 I had squandered it all chasing skirt ... ended up $30k in debt ... by 46 I had $7 million!).

Now that you are thinking ahead, you FIRST need to work out your Life's Goal (you know, The Big Dream) ...

... I presume, if you think it through, it's eventually going to require you to stop work and/or have a sh*tload of money in the bank?

Now for the bad news, you WON'T be able to save your way (and, by saving, I include glorified-savings in mutual funds, and the like) ... you will need a much more leveraged saving strategy, so you may as well start now ...

... and, fortune is smiling on you because it seems that we are at a unique moment in history ...

... BOTH money AND real-estate are cheap!

Usually, when one is cheap the other is expensive ...

... so, you should start looking at the income-producing real-estate market (rental houses, rental apartments, whatever works for you).

A reasonable alternative is to buy something that you may live in for now, but are prepared to keep and rent out when you do move to bigger/better things.

Can you see why you should buy something here and lock it in for 30 years to keep the cheap money locked in?

Whilst this unique financial situation persists, you should keep INVESTING ...

BTW: if you really just want to save your money ... sorry, I meant invest your money ... then follow Warren Buffet's advice for small investors:

Just stick your money into low-cost index funds. Now, I wouldn't argue with Warren, when it comes to stocks ... should you?

haha Rich dad poor dad was actually a rather decent book, but not for real investing advice. It's more inspirational than anything else, hard to follow if you aren't educated in the finance business.

Agree.

Before any investment, you should first educate yourself so that you can take a wise investment decision.