If you are ready to begin for the first time investing in the stock market, your mind is probably racing with questions. The first thing is not to panic because there is plenty of help for anyone looking to invest for the first time. Investing guides, web sites, and books for beginners abound. And if you would like professional help seek, out the advice from a fee-only Registered Financial Consultant. The important thing is to take your time and not rush in.
Starting out
With this being your first time investing, you need to decide on a plan of action in advance. You should start by deciding how much you can comfortably afford to invest. This needs to be an amount that you can leave invested for a minimum period of at least five years. It also should be a figure which if the worst came to the worst you could afford to lose. Now, I fully understand you do not want to lose any of your capital, but it is something that could happen, and you would be wise to face that fact.
You also have to decide whether you will be investing a single lump sum or whether you will be investing through regular monthly savings. This will have a significant impact on where you should place your money.
What to invest in?
After you have decided on the amount you are going to invest, you need to figure out precisely what you are going to invest in. That means choosing whether to go into the stock market directly or spreading your investment more widely by going for say indexed mutual funds. If you have decided on a monthly saving, plan mutual funds may also make more sense because of the lower costs involved. Also, until you have over $10,000, I would advise against investing in individual stocks and rather see you invest in a mutual fund until you reach that mark.
Okay, with all that worked out, you can move on to your next decision. Do you feel confident choosing your investments, or would it make you more comfortable having guidance from a professional? To get a fee-only Registered Financial Consultant working for you will not require a minimum investment. But working directly with a fund company, they will generally require an investment of at least $3,000, although some will work with you for as little as a $1,000 initial investment. If you do decide to go with an independent broker, then make sure you do some checking around first. They must have an excellent proven record of success and offer deeply discounted trading commissions or free, as many of the leading players in this market have done recently. Take the time to speak to family and friends for recommendations as well as calling the Better Business Bureau.
By taking your time to do things patiently and methodically, you are far more likely to enjoy first time investing success. What are you waiting for? Start investing today! For help or assistance, feel free to contact me directly or leave a comment below. And to join my email newsletter, please sign up on the form below.
