Young investors, car renters ask for advice

NEW YORK (CNNMoney.com) -- Time for Gerri's Mail Bag. Viewers and readers write in.

Question 1: I'm only sixteen, but I'm beginning to figure out how to make money in the real world. I want to start investing the right way. Where do I even begin? - Mallory

Mallory, you certainly sound very ambitious! And, that's great because starting to save and invest early is the key to success.

The first rule is start simple. It's never too early to open a savings account. In fact, banks are doing everything they can to court people your age. So make them work for your business. Shop for the best rates of return by checking out CNNMoney.com's rate page.

If you want to invest, start with the basics. Mutual fund companies, like U.S.A.A., are courting kids with low initial requirements and low fees. Saving now will mean you are better prepared for going to college, buying a home, and starting a family.

Question 2: Is car rental insurance worth it, or not? - Victor

Car rental insurance doesn't come cheap. For $10 to $25 a day, it covers damages to cars and people if you are in an accident while driving one of the rental agency's vehicles. But you want to find out what kind of coverage you have on your own car.

In most cases, the coverage and deductibles you have on your own auto policy will apply to a rental car as well. Your credit card may also include rental car coverage. Make sure to check with your issuer.

Question 3: My loan agent is trying to convince me to refinance a property that I own from a thirty-year fixed to a five-year adjustable rate mortgage (ARM). I'm hesitating because I do not know what the rates will look like in five years. What do you advise? - Robert

Your hesitation is absolutely warranted. But I don't know any of your particulars, like when you applied for your mortgage and at what rate you signed with your bank. If you took out your thirty-year fixed loan in the past few years, you should have a pretty reasonable interest rate.

So swapping out would most likely be a bad idea. Refinancing to an ARM will ramp up your interest rate risk. Keep in mind that when ARMs reset, rates are more likely to move higher. That's because the initial rate on those mortgage products is effectively a teaser rate.

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Gerri's Mailbox: Got questions about your money? We want to hear them! Send e-mails to toptips@cnn.com or click here - each week, we'll answer questions on CNN, Headline News and CNNMoney.com.