 |
Starting Your Investing Program
by Stanley Broughton
http://www.swsinvesting.com
Beginning investing can be a confusing and overwhelming
process, with many different options available to you.
What~s the best option to invest your money ~ a high
interest savings account, a mutual fund, or perhaps
technology stocks? There are almost endless options;
without the assistance of a trusted financial advisor you
could end up investing in the wrong stocks. If you are a
first time investor, you may prefer starting with low risk
investments options such as mutual funds. Generally, lower
risk also means greater chance of a small return. Still,
it~s important to remember that everyone needs to begin
somewhere.
One of the first things you should do before investing is
pay off any high interest debt you have. What you make on
your initial investment will be much less than what you~re
paying out so take care of it; then start thinking about
investments.
You may be dreaming of the perfect investment in the
stocks of a new company where you can sit back and
watch your money double, triple, etc. Don~t count on
this happening. It is possible, but for your first
investments, you want to be smart. Don~t lose all your
money trying to live a pipe dream. As fast as stocks go
up they can come down.
The stock market is volatile in nature. Be sure that you
can deal the sometimes stressful fluctuations of the
market. Some people panic when stocks go down and jump to
sell as quickly as they can, only to see the stock rise
shortly thereafter and exceed the value it was before
selling the stock. You need a certain amount of detachment
from the situation to make objective decisions. Start off
with small investments in stocks and decide if you can
handle the risk involved.
Investment strategies depend on whether you plan to be in
it for the short or long term. Will you need the money
within the next five or ten years? If you answer yes, then
other options would be better for you than stocks, bonds,
or mutual funds. If you expect to make money from any of
these categories, you have to let your money stay invested.
If you think you~ll need access sooner, then high interest
savings accounts, certificates of deposit, or money market
accounts are more likely to meet your needs.
Investing can be a very daunting process for many
people, especially if you don~t know what options are
out there. Be sure to research and really think about
your investments before signing your money over.
Submit An Article
|
|
|
