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How to GET STARTED in Investing? November 30, 2009

Posted by shaferfinancial in Finance.
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Here’s a fact; most people start investing by accident.  They go to work for a company that has a 401K/403B plan and decide to put a little per month into the plan.  They simply check off a square and put in an amount.  Here is another fact; most people use momentum from that initial decision to dictate their entire investment strategy for life. 😦

So we have the vast majority of folks investing based on a haphazard decision made years ago.  May I suggest a different way to invest?  Create a plan. 🙂

Now before you can create a plan, you must at least understand what the options are, right?  How many people have sat down and looked at the various options available for investing your hard earned money?  Did you?  And now you feel locked into a particular strategy, right?

This is why so many people do so poorly with their investments.  They simply have never looked at all their options and made a decision as to which option is best suited for their particular circumstances or personality.

Here is a list of options [not meant to be completely inclusive]:

Stocks

Bonds

Real Estate

Mutual Funds [stocks, bonds, real estate, indexed, etc.]

Certificate of Deposits/Savings Accounts/Money Market Funds

Annuities

Life Insurance

Mortgages/Debt Instruments

So which one’s are you attracted too and why?  Which ones can conceivably accomplish your goals?  What are your goals?

How do you get started in investing/saving? You create a plan that accounts for your goals and your proclivities.  You understand your options.  You appreciate the good and the bad of each option.  You accept your responsibility in all this.  It’s that simple.  The more you know and understand the better you will be at reacting to whatever the investing world can throw at you.  The more you take responsibility away from financial advisers, financial sales people, your friends, the president, politics, etc. the more you put it on your shoulders, the better your financial life will perform.

 

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