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Where Do I Start Investing For Beginner ?
I keep hearing about investing some money, so I decided to give it a try.
But I need help?
How do I start investing?
What app is good for investing?
WHERE DO I BEGIN?
#finance #accounting #investment-management #money #career #COVID19 #Help #money
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49 answers
Updated
Syed’s Answer
Hi Nancy,
Thankfully there's a lot of apps these days that allow you to invest with little to no fees:
1. Wealthsimple - Robo-advisor that you can set up regular auto-deposit and "Roundup" deposits to invest in a variety of conservative, income and growth portfolios
2. Robinhood: Easy stock buying in an intuitive user platform. Can buy individual stocks, some cryptocurrencies, options, ETFs, etc.
3. Acorns
4. Coinbase: Use this to buy and store cryptocurrencies
If you don't want to use real money, you can use these virtual capital markets games to learn how to invest using fake digital money:
1. Investopedia Simulator: https://www.investopedia.com/simulator/
2. Marketwatch: https://www.marketwatch.com/game
Thankfully there's a lot of apps these days that allow you to invest with little to no fees:
1. Wealthsimple - Robo-advisor that you can set up regular auto-deposit and "Roundup" deposits to invest in a variety of conservative, income and growth portfolios
2. Robinhood: Easy stock buying in an intuitive user platform. Can buy individual stocks, some cryptocurrencies, options, ETFs, etc.
3. Acorns
4. Coinbase: Use this to buy and store cryptocurrencies
If you don't want to use real money, you can use these virtual capital markets games to learn how to invest using fake digital money:
1. Investopedia Simulator: https://www.investopedia.com/simulator/
2. Marketwatch: https://www.marketwatch.com/game
Updated
Austin’s Answer
401K is a great option especially if your company matches. After that, I'd look into Vanguard index funds or ETFs which are highly diversified. Make sure investments are low cost. These are longer term and lower risk ways to invest. Read up on Warren Buffet's $1,000,000 bet with a hedge fund.
Thank You So Much.
Nancy
Updated
Nicole’s Answer
Hi Nancy O.
Thrilled that you are asking this question! My first job out of school was for an investment bank. One of my first assignments was to read, from cover to cover, "The Wall Street Journal Guide to Understanding Money & Investing". I HIGHLY recommend it for where to start. It is not a large book, it is a relatively easy read and I have found it to withstand the test of time on giving an excellent grounding on what it means to "invest" in the markets, in the broader economy and in an individual's future.
Happy reading and good luck!
Thrilled that you are asking this question! My first job out of school was for an investment bank. One of my first assignments was to read, from cover to cover, "The Wall Street Journal Guide to Understanding Money & Investing". I HIGHLY recommend it for where to start. It is not a large book, it is a relatively easy read and I have found it to withstand the test of time on giving an excellent grounding on what it means to "invest" in the markets, in the broader economy and in an individual's future.
Happy reading and good luck!
Thank You.
Nancy
Updated
Jesus G’s Answer
Hi Nancy!
I'll be honest, investing is difficult. Not because there's anything difficult about giving away money, but because you need a lot of restraint to see your money rise and fall through time. Sometimes you make money, sometimes you lose money. If you are not experienced and are learning for the first time, I would highly recommend you connect with a financial advisor in your area that you can develop a working relationship with. Trust me, you'll learn a lot and you may avoid losing a lot of money.
Also, very important that you learn how to read financial documents that companies release every year. Become familiar and research the leadership behind the companies you want to invest in too see if they are the kind of leaders that would steer the company in a direction that will make you investment grow. Finally, stay up to date on current events related to your investment industries and companies.
Investing requires a lot of patience and emotional control. If you want a big return in a short time, then you have to invest big, and usually these are volatile stocks that could go up or down at any given time. This type of investing strategy is usually reserved for those who can afford to loose a lot of money. Long term is the way to go for average folks who don't have lot's of free cash to invest.
I'll be honest, investing is difficult. Not because there's anything difficult about giving away money, but because you need a lot of restraint to see your money rise and fall through time. Sometimes you make money, sometimes you lose money. If you are not experienced and are learning for the first time, I would highly recommend you connect with a financial advisor in your area that you can develop a working relationship with. Trust me, you'll learn a lot and you may avoid losing a lot of money.
Also, very important that you learn how to read financial documents that companies release every year. Become familiar and research the leadership behind the companies you want to invest in too see if they are the kind of leaders that would steer the company in a direction that will make you investment grow. Finally, stay up to date on current events related to your investment industries and companies.
Investing requires a lot of patience and emotional control. If you want a big return in a short time, then you have to invest big, and usually these are volatile stocks that could go up or down at any given time. This type of investing strategy is usually reserved for those who can afford to loose a lot of money. Long term is the way to go for average folks who don't have lot's of free cash to invest.
Thank You So Much.
Nancy
Updated
Xavier’s Answer
I use an app called RobinHood. Very simple to use. I would advise starting with smaller investments while you learn.
Thank You.
Nancy
This is a great tip and one I took as well as a college student; highly advise using Robinhood to start your journey!
Romy Simeu
Updated
Doc’s Answer
Hi Nancy,
The App my sons use is called Acorns
This stock trading app was made for students to be able to invest, so the company offers the app for free for four years to any college student with a valid .edu address. My son says... It's the best one for those who have a little or no experience in the stock market.
Hope that helps
The App my sons use is called Acorns
This stock trading app was made for students to be able to invest, so the company offers the app for free for four years to any college student with a valid .edu address. My son says... It's the best one for those who have a little or no experience in the stock market.
Hope that helps
Updated
Kyle’s Answer
I highly suggest reading Jim Cramer's Mad Money book - it teaches you how to invest from the very beginning. It will teach you how to do your homework, such as what to look for on the balance sheet (assets / debt) of the company you wish to buy.
As for trading platforms I would suggest TD Ameritrade. It is very simple to use and there are no fees.
As for trading platforms I would suggest TD Ameritrade. It is very simple to use and there are no fees.
Thank You.
Nancy
Updated
Dexter’s Answer
Hi Nancy,
I highly recommend this book: "The Bogleheads' Guide to Investing" (https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365 ). If you're strapped for money, They have a wiki page that goes over the topics with less detail than the book: https://www.bogleheads.org/wiki/Bogleheads®_investment_philosophy .
I came across and read the book two years ago, and I wish I had read it back 15 years ago. If I had, I'd have a more stable financial future, but really, it's never too late to learn and I was glad I read it. I think if you were to read the book now, you'd have such a large head start, so yeah, I really encourage you to read and learn the strategies that lead to repeatable success while investing.
Good luck!
--
Dexter
I highly recommend this book: "The Bogleheads' Guide to Investing" (https://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365 ). If you're strapped for money, They have a wiki page that goes over the topics with less detail than the book: https://www.bogleheads.org/wiki/Bogleheads®_investment_philosophy .
I came across and read the book two years ago, and I wish I had read it back 15 years ago. If I had, I'd have a more stable financial future, but really, it's never too late to learn and I was glad I read it. I think if you were to read the book now, you'd have such a large head start, so yeah, I really encourage you to read and learn the strategies that lead to repeatable success while investing.
Good luck!
--
Dexter
Thank you so much.
Nancy
wow! What an excellent tutorial! Would have been nice to have had something like this to guide me in life!
Kim Igleheart
Updated
Aaron’s Answer
Start by reading The Four Pillars of Investing by William Bernstein. If you're still not convinced that an investment strategy centered around total market index funds is the right approach, then read A Random Walk Down Wallstreet by Burton Malkiel. Once you're ready, sign up for an account on Vanguard.com and download their app. If you venture into the world of trading individual stocks, make sure you understand advanced topics such as asset allocation strategies to properly diversify a portfolio and eliminate unnecessary risk. Also watch out for hidden fees that can really cut into your returns over the long run. Happy investing!
Updated
Jason’s Answer
I think sticking to the basics is the best at first. I really like Dave Ramsey books, Rich Dad Poor Dad, and The Richest Man in Babylon. They give basic advise on paying yourself first, payiing down debt, and then start investing in areas you know or have researched thoroughly.
Thank You.
Nancy
Updated
George’s Answer
Learn the principles of investing before you invest. I personally read the Bogleheads forums. Great stuff for beginners, in my opinion. I am not a professional financial advisor.
Thank You.
Nancy
Updated
Melanie’s Answer
I've just started investing for the first time recently and I use the Robinhood app. It's a great platform for beginners and isn't too difficult to navigate! I would definitely recommend doing some basic research before you start. With COVID, now is a complex time to begin investing so make sure you understand what some of the impacts can be and how trends evolve.
Thank You.
Nancy
Updated
Eric’s Answer
I strongly recommend reading the book I Will Teach You To Be Rich by Ramit Sethi. He gives simple to follow to advice that will make investing automatic.
Thank You.
Nancy
Updated
Sandra’s Answer
You are smart for asking for advice about “How to invest.” The smartest advice I can give is start now—do not wait to get started.
Research MyMoney.gov is the federal government's website that serves as the one-stop shop for federal financial literacy and education programs, grants and other information. MyMoney.gov is available in English and Spanish.
https://www.mymoney.gov/mymoneyfive/Pages/mymoneyfive.aspx
MyMoney.gov presents Five Principles, including Earn, Save & Invest, Protect, Spend & Borrow.
EARN – Make the most of what you earn by understanding your pay and benefits.
SAVE & INVEST - It’s never too early to start saving for future goals such as a house or retirement, even by saving small amounts.
PROTECT – Taking precautions about your financial situation, accumulate emergency savings, and have the right insurance.
SPEND Be sure you are getting a good value, especially with big purchases, by shopping around and comparing prices and products.
BORROW – Borrowing money can enable some essential purchases and builds credit, but interest costs can be expensive. And, if you borrow too much, you will have a large debt to be repaid.
Research more about these principals at: https://www.mymoney.gov/mymoneyfive/Pages/mymoneyfive.aspx
Once you have done your initial research, confide in a confidant that you trust. Share your approach and how you will begin your investment strategy. (I would not suggest paying someone for advice.)
Think Long-Term—the more you invest today, the more you can save over the long-term for tomorrow. Compounded interest is the concept that your principal investment (as in a savings account) is the addition of interest to the principal sum of a loan or deposit. Simply stated, you make interest on interest. When you start saving young, the compound amount can make a big difference.
Make Your Investments Automatic—your investments should be automatically deducted from your paycheck. (If you never see the money, you will never miss it.) When you begin a new position, research whether the company offers a 401k. Many companies match up to a certain $ amount of your contributions. If possible, always invest the “match” amount—it is like free money. As you make more money, increase your investment amount.
Make investment goals reasonable—you want to feel good about your accomplishment. Make your initial savings /investment goal attainable then you will be positive about future investment opportunities.
Learning about the stock market—This is a more complex lesson when you understand the basics. I might select a few imaginary stocks and track their earnings, so you begin to understand risks and rewards. This is a good learning experience without taking actual risks and allows you to begin understanding risks and rewards.
Research MyMoney.gov is the federal government's website that serves as the one-stop shop for federal financial literacy and education programs, grants and other information. MyMoney.gov is available in English and Spanish.
https://www.mymoney.gov/mymoneyfive/Pages/mymoneyfive.aspx
MyMoney.gov presents Five Principles, including Earn, Save & Invest, Protect, Spend & Borrow.
EARN – Make the most of what you earn by understanding your pay and benefits.
SAVE & INVEST - It’s never too early to start saving for future goals such as a house or retirement, even by saving small amounts.
PROTECT – Taking precautions about your financial situation, accumulate emergency savings, and have the right insurance.
SPEND Be sure you are getting a good value, especially with big purchases, by shopping around and comparing prices and products.
BORROW – Borrowing money can enable some essential purchases and builds credit, but interest costs can be expensive. And, if you borrow too much, you will have a large debt to be repaid.
Research more about these principals at: https://www.mymoney.gov/mymoneyfive/Pages/mymoneyfive.aspx
Once you have done your initial research, confide in a confidant that you trust. Share your approach and how you will begin your investment strategy. (I would not suggest paying someone for advice.)
Think Long-Term—the more you invest today, the more you can save over the long-term for tomorrow. Compounded interest is the concept that your principal investment (as in a savings account) is the addition of interest to the principal sum of a loan or deposit. Simply stated, you make interest on interest. When you start saving young, the compound amount can make a big difference.
Make Your Investments Automatic—your investments should be automatically deducted from your paycheck. (If you never see the money, you will never miss it.) When you begin a new position, research whether the company offers a 401k. Many companies match up to a certain $ amount of your contributions. If possible, always invest the “match” amount—it is like free money. As you make more money, increase your investment amount.
Make investment goals reasonable—you want to feel good about your accomplishment. Make your initial savings /investment goal attainable then you will be positive about future investment opportunities.
Learning about the stock market—This is a more complex lesson when you understand the basics. I might select a few imaginary stocks and track their earnings, so you begin to understand risks and rewards. This is a good learning experience without taking actual risks and allows you to begin understanding risks and rewards.
Updated
Jason’s Answer
Hi Nancy,
You've already solved the hardest part of investing, which is starting! So congratulations on that.
I would recommend first visiting the site below. It's simple and straightforward and will provide information on a multitude or financial areas. Start with the "investing" section and follow the links in the article to address specific questions regarding risk tolerance, portfolio allocation, mutual funds, etfs and costs.
https://humbledollar.com/money-guide/main-menu/
Good luck!
Jason
You've already solved the hardest part of investing, which is starting! So congratulations on that.
I would recommend first visiting the site below. It's simple and straightforward and will provide information on a multitude or financial areas. Start with the "investing" section and follow the links in the article to address specific questions regarding risk tolerance, portfolio allocation, mutual funds, etfs and costs.
https://humbledollar.com/money-guide/main-menu/
Good luck!
Jason
Thank You So Much.
Nancy