A mutual fund is a pool of money thats invested among a lot of stocks. Its less risky than plunking down all of your money into one companys stock because the money is spread out among various blue chip stocks and riskier stocks.

If you want a little extra income or a way to build a retirement nest egg, then theres no better time to start investing, according to those in the investment know. Right now were in one of the best economic cycles in the history of our country and a lot of the credit for that goes to the technology boom, said Jeff Mullins, an investment broker at JC Bradford & Co. in Bowling Green. The Internet is to our economy today what the automobile assembly line was in the 30s.Stocks in technology companies are expected to continue to do well in the market and probably are the best bet for those who can afford to take some risks and ride out the technology wave, Mullins said. But if youre not sure youre ready to dabble in the market and want to play it safer, there are other investment options mutual funds, certificates of deposit and bonds that are less risky. Probably the biggest mistake people make is that theyre too conservative, Mullins said. Its easy and comfortable to leave it in the bank … but the current balance of low inflation, low interest rates and a good business economy are driving up the market making it a good time to invest. A mutual fund is a pool of money thats invested among a lot of stocks. Its less risky than plunking down all of your money into one companys stock because the money is spread out among various blue chip stocks and riskier stocks. Its probably the best way for a small saver to invest because youre diversifying your risks, said Robert Kirby, a financial consultant at Hilliard Lyons in Bowling Green. If youre looking for something that can add a little something to your monthly income, certificates of deposit are another conservative option for investment. The average interest rate most banks are offering is in the ballpark of 5 percent not a big return, but its still better than leaving it in a traditional savings account at 2 percent or so. For those who want to get started building that nest egg to supplement their Social Security checks down the road, an IRA account is another option. You can participate in a company IRA, in which a percentage of your pre-tax income is deducted from your paycheck. Or, if your employer doesnt offer an IRA, you can start your own. An investment broker can help you open an IRA. You can put up to $2,000 into an individual IRA each year, which you can defer from your income when you file your federal income taxes at the end of the year. Another type of IRA is called the Roth IRA. You still can only invest up to $2,000 into it a year, but its even more powerful, Mullins said, because if you dont take it out before age 59 1/2, then you can take it out tax free. While a broker would caution you to weigh your options for investment depending on your age, how much you want to invest and how much you hope to make whether youre hoping to add to your monthly income or want to plan for a more comfortable retirement there are some questions you need to answer before staring any type of investment plan. The following are a few examples:What is my goal?Do I need income from this investment?Can I afford to live without this money for a long time?What are my risk parameters? Can I risk losing this money by investing it in the stock market, or do I need the security of a CD or bond?