For majority of Americans their retirement will depend largely on their stock investments. Many shy away from learning about the stock Market because it is “too scary and complicated”. In this age of information there are plenty of opportunities to learn what you need to know in order to be an effective investor. There are websites that will help you with definitions and websites that will teach you investment basics. The last thing that we want for any of our students to do is blindly follow the advice of a financial professional. I believe that having the advice of competent professionals is important but at the end of the day it is your money and you have the final decision on what happens. Your investments are YOUR responsibility! Never fall into the trap of following the advice that I have heard from some advisers and that is “just trust me” I know what I am doing. That is great that they know what they are doing, but their job is to explain to you what they are doing so you too can participate in the decision making process. It is time to take a more active approach to investing.
There is a way to simplify your investment strategy and that is to invest in the whole market. Getting into something like an Index Fund can greatly reduce your expenses.
What is the big deal about expenses when it comes to investing? In a recent article, I was amazed to see that a two percent savings on investing expenses increased an investor’s return by about 60 percent over the life of the investment.
Investing like paying down your debts takes a consistent mindset. Slow and steady wins the race! Make sure you are well informed so you can make the calls with the help of professionals and not blindly follow what they recommend! Listen to this weeks call on the stock market to get started on learning the basics of stock market investing!