Hi Everyone, I've decided that I want to start investing and preparing for my future. My wife and I are 22. What should I know about the different options that are available to me? I'm very interested in starting an IRA - is this a good way to go? Anyone here invest in the stock market on their own (without a broker)? or what services do you utilize in order to do so. Just looking for everyone's opinion and pointers. Maybe some good informational websites that I can check out would be helpful. Thanks
Investing in the stock market through like Ameritrade or another online option is a smart idea but never should be your only type of investing. I would put most of your investments into more stable things such as mutual funds, IRA's, etc. Investing in the stock market can pay off big, but, the floor can always fall out from under you and you can lose it all. Tread softly and learn the ropes before just jumping in. One stock that I do consider very safe (of course that is just my opinion) is Warren Buffet's Berkshire stocks. Here's a blog post I made recently about his stocks if you want to check it out. Money Complex - Make money online with investing, advertising, and web development! » Blog Archive » What goes up must come down?
I was talking with a business investment major the other day about how to learn how to invest and which investments are good, and she basically said start daytrading. Her advice to me was to take 500 or so dollars that I don't care about losing, and start an etrade account. You have to give yourself a reason to learn. Playing hypothetical games will only get you so far. I plan to be researching a lot about how the stock market works and when to buy and sell, but I know that will only happen if it is real and relevant to me. I think of it as paying 500 for an education. Sometimes, the scholarship is given late. Other times, you pay for the class, and only walk away with the knowledge you gain. Read up, do your research, but most of all, give yourself a reason to learn. It also helps to make it competetive. Maybe get two or three friends to all go in 2 or 3 hundred bucks in the stock market and have a contest to see who makes the most in 3 months. To risk nothing is perhaps the greatest risk of all, so go ahead and dive in. Just make sure you wear your lifejacket.
It is great that you are smart enogh to get started at your age. I am 60 and have been in the market for 30 years. I'll throw these at you; 1-Get a plan and try hard to stick to it. 2- don't ever invest in something you do not understnd. 3- if you do not feel comfortable investing in stock directly go with proven mutual funds. I have never invested in a single stock because I don't have the interest to study the company and I don't know all the economic factors that would dictate when to buy and when to sell. Anyone can buy but knowing when to sell is more important. 4-start watching television shows on CNBC and other investment shows, follow radio talk shows, magazines, etc. just to get a "feel" or become an expert unless that is yout goal on thew 5- get interseted in the market here and worldwide 6- don't get greedy or scared (remember your "plan") 7- Follow proven winners not get rich now scheems. 8- diversify, diversify, diversify. 9- don't buy when you see how well it has done this year because it is already up, this is called "following a winner" 10- don't panic when things go bad. Remember, the market has been through many ups and downs and is still making people money 11- if you save 10% of your income evey week until you retire you will be very comfortable; this is a fact. 12- get er done!!!!
