What suggestions do you have for someone who has never invested?
I am curious as to what it takes to start investing. I am in my early 30's and never gave it a thought, till the other day when my cousin thought it might be a good idea. Any suggestions on how to start out so late in life?
- yeeooowLv 41 decade agoFavorite Answer
It’s never too late in life to start. So good for you…… Now….
First decide what kind of brokerage company you want to work with. You can open a brokerage account in your bank, or with a large full service brokerage or an internet brokerage.
I use www.scottrade.com (an internet brokerage) because it’s cheap and easy with low frills. I do my own research and make my own investments. I think it's the best way to learn. But any low cost internet brokerage service is fine.
Step 2. get a subscription to Barrons or Investors Business Daily… and actually read them
Step 3. If you have some money to invest, put it in 3 month CD’s right now. First the market is unstable and second you have some homework in Step 3 to do before you do any investing.
Step 3. Go out to the internet and search on the following subjects. Get familiar with the concepts.
Roth ira vs ira
Large med small cap
Value vs growth
Indexed mutual funds
Also yahoo has some good information, http://finance.yahoo.com/ has some learing sites... about half way down the page on the left... check them out as well.
also Yahoo, check out http://finance.yahoo.com/columnist/archives/headli...
Suze Orman is a CFP(see below) and she always has good advice especially for the young and less experienced.
Step 4 go to http://clearstation.etrade.com/ (it’s a part of e*trade which is also a low cost brokerage) and sign up for a free account. Play around there by looking at graphs and fundamentals.
I think it’s also a good idea to pretend you have $10,000 and start buying and selling on paper. Keep track of where you are each day for a month… It’s a lot easier to lose play money then real money….
Step 5. It’s always a good Idea to see a CFP (certified financial planner). Their job is to work for your benefit, not to sell you investments. They can cover subjects like employee benefits, insurance, budgeting, living trusts, 401k, taxes and real estate as well as investment types and investment types to keep away from.
Always strive to do your own research… you’ll find everyone sounds like an expert so take everything people tell you with a grain of salt. It’s not easy in the beginning but soon you will be the expert.
Don’t get involved with futures, currency, options (unless you get stock options at work), commodities, annuities and other derivative type investments at this time.
- 1 decade ago
#1. Start living below your means and saving your money.
#2. Pay off any credit card debt you may have. The interest you are paying on those is likely much higher than the returns you'll see on most of your investments.
#3. Make sure you have a little set aside in an interest bearing savings account in case you run into unexpected trouble. 3 months living expenses or so.
#4. For most people purchasing a home is their largest investment, and there are a lot of good tax reasons for it.
#5. An index based mutual fund is a good way to invest in stocks if you are inexperienced. They generally have lower fees than other mutual funds. Fees are a big reason most mutual funds underperform the market.
#6. I've always purchased common stocks directly through a broker like Etrade. You don't need a lot of money to start an account. Motley Fool has a lot of good articles on getting started. In my experience purchase only stocks that you plan to hold for at least a year, don't start trying to day trade. Don't buy a stock because it is "cheap". If you find yourself getting really excited about something, be careful, don't jump into the water before you really know what's under it.
#7. Have fun, know that you'll make some bad decisions, but learn from them.
(and by the way, I didn't start investing till I was over 30, but it's never too late to start)Source(s): http://www.fool.com
- 1 decade ago
Don't invest ANYTHING for at least 3 months, during which you should spend 1-2 hours per day reading about the markets and how they work. Maybe use Yahoo Finance to set up a pretend portfolio of however much you are thinking about investing, and track how your pretend investments perform and why they go up and down. Then....start small.
- 1 decade ago
Regarding companies and shares, read the book "Common Stocks and Uncommon Profits", by Philip Fisher. It's an investment classic. Warren Buffet ascribes to his investment philosophy.
Regarding investing in general, read "Rich Dad, Poor Dad", by Robert Kiyosaki.
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- pocheLv 43 years ago
circulate to Vegas and circulate to the closest slot gadget positioned earnings , pull look after. that's short term making an investment in a nutshell.massive probability small return on conventional with a small volume the superb investment are mutual funds verify with the massive investment homes for a itemizing of them
- DodgerBlueFanLv 41 decade ago
it's never too late to invest, look into IRA's, it's a retirement account, try to plan for your retirement instead trying to get rich quick, the higher the risk the more chance there is to lose your investment, look into mutual funds
- 1 decade ago
Here are some simple tips:
-do some research
-dare to face the risk
-get some advise from expert or experience one
-wisely make your desicion..
if you need to know what am i invest in just e-mail me...