Keep in mind I know next to nothing about money, so any and all advice will be appreciated. Basically, I'm looking to know what would be some good directions for investment? Stock market? Foreign currencies? I honestly have no clue, and also, what types of people I could consult with for further advice - and who if anyone I should trust to invest my money. Thanks.What's some good advice for a beginning investor?
You are not ready to invest unless you have bought your home. If you have $20,000 you can buy a home and the money you are squandering paying rent would end up taking care of you in your old age. If you have a home, $200 a month on the principal will make you richer than most of the stocks in the stock market.
If you are financially well off and have $100,000 to fool around with. Put 75% of it in a mutual fund and use the funds manager to diversify as much as can be done. The remaining 25% can be invested as you feel like doing.
In the long run, it is the base of taking care of home that will pull you out of problems.What's some good advice for a beginning investor?
Look into DRIPs, Dividend ReInvestment Programs, for stocks. There are a number of different ways to do them. There are even some companies on the internet that help you. It is good if you are young and just beginning. Check out Sharebuilder, it does DRIPs.
The stockmarket is a good place to start, along with savings bonds. Currency trading can be expensive and dangerous. Commodities can make big bucks, but it is real easy to loose everything. Real estate you can rent out is always a good investment. Even if you can't rent it out for the full payment of the loan, you can end up ahead.
Check out Personal Finance for Dummies and Investing for Dummies, then move on to some other books.
As for people you can trust to invest your money, check with your bank. As people you know and trust who they invest with. Word of mouth and reputation are things to on.
If you are a beginner....stay away from foreign currency markets. I would start slow..read a few books..namely by Peter Lynch or Jim Cramer ( alot hate him...but he's pretty darn smart). I would also read the Wall St. Journal every day...it's an education in itself.
I would recommend a two step approach. Read a book or two...read the Journal....and consult an advisor (some have minimums). Ask the advisor his/her background...such as education and assets under management. I give my clients this info before they can even ask me about an investment. They deserve to know.
Some of the previous answers are giving you good advice. I would just add that two sites/mags that I found very useful from an educational point of view were: www.motleyfool.com and hte monthly magazine Smart Money (published by the Wall Street Journal, there's also a e-newsletter that they send out). Their reference material is helpful to learn terms, what to look for, etc.
I've also only really purchase stocks in companies that I understand and probably would use. If I can't really understand what a product is for, I have stayed away. Diversification is also important.
I would recommend you to invest some money in stocks and some money in foreign currencies. check the website below to learn more on stock trading and how to select the best shares and forex trading shown by experts.
Hope it helps.
http://money-review-site.com/shares.html
http://money-review-site.com/investment.鈥?/a>
These are just MY guidelines that I teach :
#1) DO NOT listen to dipshits who tell you to spend your money rather than save or invest it. Taking advice from someone who does nothing but spend will get you no where fast !!!
Limit time spent with those who do not agree with or understand why you want to invest.
#2) You CAN teach yourself by reading everything you can find on money management and investing. Start slowly with a stock that you can buy directly from a company without a broker. Search for ';direct purchase plans'; here in the web for companies that offer this. There are 1000's of companies that offer this. AND some you can get into for as little as $50.oo.
#3) DO not get frustrated thinking you have too little to anything with... it all has to start somewhere and even $100 is a start. Do not put off investing. Start and learn as you go. Befriend someone who is where you want to be and watch, listen %26amp; learn.
#4) When you have gained some investing self esteem, start an online account with someone like ';scott trade'; where you only pay $7 a trade and no commissions on the amounts you make. Research a company and invest in things that are of iinterest to YOU and those around you. Look around to see what people are using everyday and will be using in the years to come then make the jump into a stock you think you will enjoy owning. (I have a scott trade account and have had nothing but a pleasant experience.)
#5) DO NOT listen to morons who are scared and want to sell sell sell every time the ';nasdaq'; goes down. Those people are fools. The ';nasdaq'; DOES NOT run the investing world though some ignorant investors will have you believe different. You want to BUY when things are low and sell when high. When investing, the LOWS are where you will find fortune !!
#6) If you know nothing of money, STAY the hell out of credit card debt !!! YOU are the one who makes the decisions regarding YOUR money so if you blow it, you have no one else to blame !!!
#7) Investing isn't risky... fear and negativity are what is risky, they keep you forever backing away from opportunity. Learn to manage your fears and limit time spent with negative people.
#8) Procrastination gets you no where... Start NOW and continue... Investing even a small amount every month adds up and soon your money is making money for you. I got my son started at age 13. He is now 20 and sitting better off than most 50 year olds.
Dedication to you investments will prove healthy financially in the long run. If you are wanting to invest for a quick buck then be ready for some disappointment. Of course sometimes a good stock pick ( I know first hand and it is bliss $$$$ : ) ) will make you a nice sum in a short amount of time but you need to go into it not expecting it.
#9) Diversify by doing a few different things. Go to your local bank or credit union and get a CD. Get some stock directly from the company, start an online account and buy your first stock, %26amp; get a mutual fund. In one year check where these are at and what has made you the most $$. Is the safty of the CD for YOU ? If you want more risk then move that money onto what you have researched and jump in.
#10) TO SUMMARIZE: The biggest lesson is : if you don't start you will never know how well you would of done. You have to be the judge on who to take advice from and who is just talking the talk. Tread lightly and pay attention to those who are full of hot air. You have to listen to them as much as you would someone with great advice for you need to know what NOT to do as well.
Get started NOW, even small amounts add up. Take a friend along for the ride but limit time spent with those who will hold you back in any way. Fear is contagious, keep it at bay.
Read read read and try some different things to see what works for you.
I best quit now or I will need to publish a book !
: )
Good luck with your financial future !!
If you know very little, have a long-term horizon, and can make periodic contributions, your best bet is a highly diversified, low-cost mutual fund. Check out Vanguard or Fidelity.
I'd say that's the way to start, until you've accumulated $100,000 in assets. In the meantime, learn something about stocks and bonds and maybe you'll be ready to complicate your portfolio. But if you haven't done your homework over the years, or simply are not competent in those areas, stick with a professional to invest your money for you, and accept that you'll pay a fee for their services.
It depends! It depends on your financial situation, tolerance for risk, age, etc. If you know very little, you may be better off talking to a financial planner. Otherwise, research! Read books and newspapers. Search the internet. Talk to friends. There are so many ways to invest, but without knowing more about your personal situation it is hard to say what is right. Jim Cramer's books try to make things pretty simple to the average Joe kind of investor. But his are just one of many.
Best of luck!
Here are the responces of someone with the same question as you (and a good one at that).
http://answers.yahoo.com/question/index;鈥?/a>
The answers you've recieved are good ones. The type of investment you should be in depends on several factors.
First, is your risk tolerance. Could you stomache a 10% loss, 20% loss, or 30% loss without wanting to change your investments? You can minimize your risk and maximize your return by investing in a diverisified mutual fund with a low expense ratio.
A second factor is your time horizon. When are you going to use the money? You probably don't want to take a lot of risk if you need the money soon. But you may want to take more risk if you are not going to use the money for a long time. Typically the longer your time horizon the more risk you should take. But remember, the more risk you take the more likely you are to take short term losses.
The third factor is your required rate of return. How much do you want to make? Long term returns are directly tied to how much short-term risk you can stomache.
You probably did not want a lesson in investments. You probably wanted to know where to actually put your money. Vanguard, Fidelity, and T. Rowe Price all offer diversified mutal funds with low expense ratios. If you have a long time horizon and are risk tolerant, then you want to consider the T. Rowe Price Spectrum Growth Fund. This is an excellent diversified growth fund. If you want little less risk then the Vanguard Wellington Fund is a good moderate-growth fund. If you are risk averse or have a short time horizon, then you may want to consider Vanguard Wellesley Income Fund. This is a good conserverative growth fund.
Hope this helps.
Good luck.
First, and most important, take your time to learn about investing. There are some sites online that have basic tutorials on investing. Try investopedia.com It's an education site that gives you a lot of information.
Second, don't just take someone else's advice because you think they know more than you do.
Third, decide how aggressive you want to be....how much risk you want to take. If you're young, you can afford to take more risk to weather the ups and downs in the market.
Fourth, never....never...never invest in only one stock. The market is very volatile, and you should balance your risks by diversifying your investments. Some stocks, some bonds, some cash in money markets.
Fifth, as a new investor, I'd advise against buying any single stocks. Too volatile. Your best bet is to study about mutual funds where the fund company invests your money in a large variety of stocks and bonds to spread your risk. Start with an index fund (indexed to the market, like an S%26amp;P 500 Index Fund) which will perform about as good as the entire market does. I prefer to work with Fidelity. Go to Fidelity.com and read upon all their mutual funds. Invest in no-load mutual funds where they aren't charging you big bucks for each transaction.
Sixth,.......I repeat, study and read about mutual funds, the market, stocks, bonds and learn about this stuff before you make any investments.
Seventh.....you don't have to go thru a stock broker and pay big commissions. You can invest with a management company, like Fidelity, and pay very little in the way of fees. Remember, stock brokers make their money on commission by buying and selling your stocks, so there's an incentive to have you make as many moves as possible.
These are just highlights.....start studying. Good luck.
keep updated on good stocks and look ahead and take good risk
No comments:
Post a Comment