You have just convinced yourself of the importance of investing as a means to grow wealth and prepare for retirement. You know the earlier you start your investment, the better. You want to learn more but don’t know how to start. Then there’s always the financial jargon that sounds totally Greek to you.
Your phone rings. It’s your old school friend who recently turned financial advisor. He tells you that the latest “market correction” is a great opportunity to buy. Then again, he also called just last month encouraging you to “buy and ride the bull-run”. Suspicious, you begin to wonder if he’s really a friend or he’s just trying to hit his sales target.
Eager to find out more, you start flipping the papers hoping to find some kind of a clue. A headline reads, “Dow Jones slips further after Wednesday’s meltdown” and “Worst single day plunge in 2 years”. Yet just four weeks ago you recall reading, “Dow Jones hits another record high”. Flabbergasted, you start to think that investing in stocks is but a roller coaster ride.
You are bewildered by the media’s chatter and are a little uncertain of your financial advisor. Nevertheless, you are unfazed by the scary ride ahead. Wealth building and retirement planning means a lot to you and you want to take control of your finances. Bravo. I encourage you to do the due diligence for investing the way you would when you buy a new computer or a new house research and compare options, question the salesman, make sure that the chosen product suits your needs and functions the way the salesman said it would.
Here are some suggested following ways to kick start your investing education:
1. Do read and learn before jumping onto the bandwagon of investing. Try reading Why Smart People Make Big Money Mistakes And How To Correct Them by Gary Belsky and Thomas Gilovich. We believe it is important to understand common emotions and thinking processes before making any investment decisions. Then, visit www.fool.com/school/basics/basics.htm for a quick primer on investing. Investopedia.com is another great site which demystifies those tough financial jargons. After that, for those who like the idea of purchasing stocks at a bargain, you can pick up a copy of “The Intelligent Investor” by Benjamin Graham. Book reviews are available on www.amazon.com.
2. Start a learning group or an investment club with friends and like-minded folks. Meet regularly to discuss about investment concepts and strategies. Sound out the club members before implementing your investing ideas. Doing so lowers your risk of making rash decisions. Stay away from gossips and speculation which offers empty promises or unfounded fears.
3. Join online forums. These are often categorized to help you search for the information you need, ranging from beginners’ tips to specialized discussions on unit trusts, properties, shares, etc. Post a question, share your experiences or gain the insights of fellow investors.
4. Attend investing seminars. They are a great chance to interact with expert speakers and mingle with other individuals keen on investing. Search your local papers or the net for as there’s bound to be a wide range of seminars and workshops that’s suitable for both beginners and experienced investors.
These first steps prepare you for the long ride ahead. By extending your passion for learning to the realm of investing and making it a life-long commitment, success awaits at the end of it.