The Top Five Investing Resources for Beginners
Investing is something that many people shy away from, and it’s easy to see why. Investing has a reputation for being the province of the wealthy and those who work in finance, rather than the everyday person. However, it doesn’t have to be this way, and there are plenty of great resources out there for those who want to start investing but don’t know where to begin.
Whether you want to learn about how to invest in stocks or how to invest in real estate, there are plenty of places online that can help you out. Here are some of the best ones out there.
First 6 Steps to Start Investing
1. Read up on the basics of investing, like how stocks work and what ETFs are.
2. Figure out what your investing goals are and then create an investing plan to help you get there with the least amount of risk possible.
3. Educate yourself about the different types of investments that exist - stocks, bonds, mutual funds, etc.- so you can determine which might be best for your needs and goals. 4. Determine your time horizon and figure out whether you need a short-term or long-term investment plan.
5. Find a reputable company to invest with based on their rates, reputation, fees, services, and account options.
6. Once all these steps have been completed successfully, it's time to make a commitment by opening an account and funding it!
Learn How the Stock Market Works
There are many different resources out there that can teach you how the stock market works. If you're new to investing and want to learn more, the following articles are a great place to start:
1. A Beginner's Guide to Trading and Investing in the Stock Market
2. How To Trade Stocks with Ease
3. What is an IPO?
4. The Ultimate List of Investing Books
5. The Biggest Mistake People Make When Buying Stocks
6. An Introduction to Bonds
7. How Do Shares Work?
Pick a Brokerage Company
TD Ameritrade is one of the largest online brokerage firms in the United States and has a wide selection of investments and trading tools. They also have some of the lowest fees in the industry. TD Ameritrade charges $6.95 to trade stocks, ETFs, options and mutual funds.
TD Ameritrade does not charge a maintenance fee for accounts with less than $25,000 invested, which is great for beginners who are just starting out.
If you're looking to trade more than 3 times per quarter, TD Ameritrade's Unlimited Plan costs $9.99 per month or $69.99 per year and includes 100 trades per month with no commission on any trades over 10 shares ($1 minimum).
Get Your Money Ready
If you want to start investing, the first step is to take a look at your finances. Do you have cash on hand? If not, are there things you can sell or do without in order to raise some money? If so, how much do you need to save up before you start investing?
If this seems like too much work, consider using an online service that will help manage and grow your investments, like Wealthfront or Betterment. These services allow you to invest with as little as £100 in just minutes. Plus they'll automatically rebalance your portfolio depending on changes in the market so that your risk is balanced with the amount of time and money invested.
Pick an Investment Strategy
An investment strategy can be broken down into two camps: equity and income. Equity investing involves the purchase of stocks, bonds, or mutual funds, with the hope that they will grow in value over time and increase in value by more than the cost of buying them. Income investing involves purchasing securities with a higher yield, such as dividend stocks or bonds. This type of investment is typically safer because it provides regular income without as much risk to lose your original investment capital.
Check out these Online Resources
Online resources are a great place to start when you're looking to learn more about investing. These five websites offer beginner-friendly advice and tools:
Wealthfront is the first online investment service with a free, automated financial advisor
LearnVest is an award-winning personal finance company that simplifies your life by managing all aspects of your finances
Ritholtz Wealth Management provides independent wealth management services to clients nationwide.
Mogo Finance Technology Inc. offers a variety of financial products including investing, banking and insurance