The most recent annual report – While reading the annual report, you'll want to pay special attention to the letter from the Chairman, CEO, and sometimes CFO or other high-ranking officers to see how they view the business. Not all annual reports are created equally. Generally, the best in the business is considered to be the one written by Warren Buffett at Berkshire Hathaway, which you can download from free on the holding company's corporate site.
This book has good intentions with plenty of information for beginners, however don't feel bad if you get a little lost when some of the terminology and assumption that all of it has been explained thoroughly. A glossary in the back is extremely helpful when dealing with new terms that I had no idea of what to do with like price/earning ratio, ETF, hedging fund expenses, etc. The plus side is the extensive step by step explanations of how to do pretty much anything like choosing a broker, selecting funds vs. stocks and more.
In terms of the beginning investor, the mutual fund fees are actually an advantage relative to the commissions on stocks. The reason for this is that the fees are the same regardless of the amount you invest. So, as long as you have the minimum requirement to open an account, you can invest as little as $50 or $100 per month in a mutual fund. The term for this is called dollar cost averaging (DCA), and it can be a great way to start investing.
Common Stocks – When you invest in stock, you acquire an ownership stake in an actual operating business, along with your share of the net earnings and resulting dividends produced by the firm. Although you don't have to invest in stock to get rich, over the past could of centuries, equities (stocks) have been the highest returning asset class and have produced the most wealth. To learn more, read What Is Stock? which will break down the fundamentals.
Brokers are either full-service or "discount." Full-service brokers, as the name implies, give the full range of traditional brokerage services, including financial advice for retirement, healthcare and everything related to money. They usually only deal with higher net-worth clients, and they can charge substantial fees, including a percent of your transactions, a percent of your assets they manage and a yearly membership fee. It's common to see minimum account sizes of $25,000 and up at full-service brokerages.

When investors talk about company size, they are typically referring to its market capitalization, or total market value of the company’s stock based on current price and the number of shares outstanding. There are times when the market clearly favors small- or medium-cap stocks over large ones. And, of course, vice versa. Over the long term, academic research suggests that small-cap stocks outperform large ones.


You editors of these financial info pieces should STOP saying that tax deferred means NO taxes incurred as you did in the last sentence. I have read this over and over in various info articles and it is NOT correct. You will pay the taxes, just not annually, you wait until you take distributions; but you will pay taxes on tax deferred accounts such as IRA at some point. To DEFER is to DELAY or POSTPONE not eliminate!
We hope your first stock purchase marks the beginning of a lifelong journey of successful investing. But if things turn difficult, remember that every investor — even Warren Buffett — goes through rough patches. The key to coming out ahead in the long term is to keep your perspective and concentrate on the things that you can control. Market gyrations aren’t among them. What you can do is:

I view it like the proliferation of processed foods- for several decades, processed foods have grown in popularity, due to their cheapness and convenience. But as a consequence, we became very detached from our food, obesity and diabetes rates utterly skyrocketed, our soil is reduced and damaged, we’ve badly stressed the financial sustainability of our healthcare system, and we’ve treated animals like factory products, keeping them sick and confined and laden with antibiotics to keep them alive in hellish conditions.
Fundrise – One of the most popular real estate crowdfunding sites, Fundrise has a minimum investment of $500 and charges between 0-3% in fees. The site is ruthless about which projects it accepts – only about 5% of proposals are chosen. Fundrise is another one of our favorite sites simply because of the range of investment properties they have to choose from, but also because you don’t have to be an accredited investor to invest – they are one of the only platforms that allows this currently.
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A stock is intrinsically attached to the financial performance of a company. So if the business is doing well, the value of its shares go up. If it’s trending downward, the shares will lose value. Because of this volatile nature, stocks are some of the riskiest investments you can make. However, along with high risk comes the potential for high returns.
As you near retirement, a full-service brokerage firm may make more sense because they can handle the complex “stuff” like managing your wealth in a tax-efficient way, or setting up a trust to pass wealth on to the next generation, and so on. At this point, it may be advantageous to pay…say, 0.50% of your assets in fees each year for advice and access to a certified public accountant who can help you with the nitty-gritty details that are more important as you start making withdrawals (rather than contributions) from your retirement accounts. That said, even discount brokers are getting into the advisory and wealth management business, so they shouldn’t be ruled out as a true start-to-finish solution for retirement.

When you're first starting out, it helps to focus on businesses whose models and products you use or understand. If you're a tech fan, investing in a company that sells gadgets could be a good bet for you. But more than that, you'll want to find companies with a solid competitive advantage. This can come in a number of forms, whether it's an innovative product unlike any other or a fantastically streamlined manufacturing process.

Ordinarily, the plan administrators batch the cash from those participating in the direct stock purchase plan and use it to buy shares of the company, either on the open market or freshly issued from the business itself, on predetermined dates. The average cost of the purchases is weighed out or some other methodology is used to equalize the cost among investors with the stock allocated to the account of each owner. Just as you get a statement from the bank, the direct stock purchase plan statement arrives, in most situations quarterly, with a listing of the number of shares you own, any dividends you've received, and any purchases or sales you've made.


These profits may be distributed as dividends, which are quarterly payments made to the shareholders, they may be distributed in the form of share repurchases, which help drive up the price of the stock, making the shareholders money, or they may be set aside in order to be used at a later date to grow the company and increase the value of the shareholders’ stock.
There are many fees an investor will incur when investing in mutual funds. One of the most important fees to focus on is the management expense ratio (MER), which is charged by the management team each year, based on the amount of assets in the fund. The MER ranges from 0.05 percent to 0.7 percent annually and varies depending on the type of fund. But the higher the MER, the worse it is for the fund's investors.
Over time, inflation erodes the purchasing power of cash. If the current inflation rate is 3%, when you go to spend the $100 bill you stashed in a coffee can last year, that money will only get you $97 worth of groceries compared to what it would have gotten you last year. In other words, the cash you’ve been sitting on doesn’t buy as much as it used to, because everything has gotten 3% more expensive.

If you want more help with your investing, there is a variety of ways to find financial advice: if you want someone who helps you in a non-sales environment, you can find an advisor in your area at one of the following sites: letsmakeaplan.org, www.napfa.org, and garrettplanningnetwork.com. You can also go to your local bank or financial institution. Many of these charge higher fees, however, and may require a large opening investment.
Shares of ETFs are bought and sold in the market at a market price, which may differ from NAV. Investors selling ETF shares in the market may receive less than NAV. Investors buying and selling ETF shares at market price may pay brokerage commissions, which will reduce returns. Market returns are based upon the closing price, which is generally at 4:00 p.m. ET and do not represent the returns you would receive if you traded shares at other times. Investors may acquire ETF shares and tender them for redemption in Creation Unit Aggregations only. Individual ETF shares are not redeemable.
Consider using the services of a financial planner or advisor. Many planners and advisors require that their clients have an investment portfolio of at least a minimum value, sometimes $100,000 or more. This means it could be hard to find an advisor willing to work with you if your portfolio isn't well established. In that case, look for an advisor interested in helping smaller investors.

When people are feeling less optimistic about the economy – because of a bad report or new tensions between countries, for example – people often buy bonds. The main challenge with buying bonds is making sure your investment keeps up with inflation. The advantage of bonds is that while the return may or may not be as high as it would be in the stock market, they offer a guaranteed return.
If you want more help with your investing, there is a variety of ways to find financial advice: if you want someone who helps you in a non-sales environment, you can find an advisor in your area at one of the following sites: letsmakeaplan.org, www.napfa.org, and garrettplanningnetwork.com. You can also go to your local bank or financial institution. Many of these charge higher fees, however, and may require a large opening investment.
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There are three caveats, however. The first is that you will have to meet the minimum account balance required to open a brokerage account. The second is that the selection of commission-free ETFs is limited and, from a performance and strategy standpoint, you may be better off paying commissions to get the ETF you want. Three, both ETF and mutual fund capital gains and distributions can be subject to taxes, which hurts your realized returns. (You will not incur taxes on capital gains or dividends from for funds and stocks held in a tax-deferred account, such as an IRA. Taxes are due when a distribution is made from a traditional IRA account.)
These days, there's really no reason to avoid opening a brokerage account. Those of you worried about rehypothecation risk should opt to open a cash-only brokerage account, not a margin account. Make sure you are covered by SIPC insurance. If you are smart about the firm with which you are working and are only buying ordinary domestic common stocks, you can probably get away with trading costs and commissions for less than a trip to your favorite coffee shop. 

Investing in mutual funds is sort of like buying a big bucket of stocks, and that offers you a degree of protection. Remember, if you buy an individual stock and the issuing company has a bad year, you might lose quite a bit of money. But if you're invested in a mutual fund that owns 200 different stocks, and only one has a bad year, you won't feel the impact nearly as much. Buying shares of mutual funds also takes some of the legwork out of researching investments -- though you should still perform your due diligence regardless.


If you have the option to do so, gaining full employer matching from a 401(k) or Thrift Savings Plan is the highest priority, because it’s essentially a 100% return on your investment up front, assuming they give you the typical 5% matching if you contribute 5% of your salary. Also, it’s tax-advantaged and automatic; it comes out of your paycheck before you get your hands on it, which is a strategy called “paying yourself first”.
Announcer:                        00:00                     You’re tuned in to the Investing for Beginners podcast. Finally, step by step premium investment guidance for beginners lead by Andrew Sather and Dave Ahern to decode industry jargon, silence crippling confusion and help you overcome emotions by looking at the numbers. Your path to financial freedom starts now.
Like many new investors, you've decided to invest in a company and pick up your first shares of stock, but your limited knowledge leaves you wondering how to do it. Don't worry! This overview was designed to help you learn precisely that - how to invest in stocks. To be more specific, for you new investors, this page was put together to serve as an introductory depository of investment articles designed to get many of the basics out of the way before moving on to some of the more advanced topics which I've written over the past years.
CONSISTENT DIVIDEND GROWTH is what has been working. I did start with high yield stock and it was nice to see the dividend income but my total portfolio growth was not where it should have been. What can I say? I was a newbie dividend investor and I wanted to generate retirement income from my portfolio and that’s what I was doing – only generating income and not growing my portfolio. In my strive to become a better investor, I stumbled upon the 10% dividend growth, the chowder rule, and the total return value of a portfolio. Let me show you why those 3 concepts matter.
Investing in the stock market is a great way to build your wealth, but for those of us who aren't professional stockbrokers, knowing what information to trust and where to put your money can seem overwhelming. Stock Market Investing for Beginners provides you with the strategic advice and knowledge necessary to make informed investment decisions. Equipping you with everything you need to take control of your financial future, Stock Market Investing for Beginners removes the guesswork from investing.

Crowdfunded real estate allows you to join other investors to pool your money to invest in a property – very similar to peer to peer lending. The great thing about this is that there are low minimums – depending on the platform you use, you can invest as little as $1,000 and be an owner in a property. Also, you don’t have to be an accredited investor to get started – anyone can do it.

But since there is virtually no risk, there isn't much interest. The interest is comparable to higher savings accounts (many of the highest-yielding 1-year CDs currently pay a little over 2 percent). There are even some banks that offer no-penalty CDs, meaning if you need to withdraw the money early, you won't get hit with a fee. Still, if you're worried that you might need your money, you may be better off finding a savings account that offers as much interest as possible – since you will be able to withdraw your money without a fee.

Dave:                                    00:36                     All right folks, we’ll welcome to the Investing for Beginners podcast. This is episode ninety-eight. Tonight we’re going to talk about why you shouldn’t be a lone wolf investor. And I’m going to have Andrew kind of take us from there. All Right, Andrew, why don’t you go ahead and chat.
Don't look at the value of your portfolio more than once a month. If you get caught up in the emotions of Wall Street, it will only tempt you to sell what could be an excellent long-term investment. Before you buy a stock, ask yourself, "if this goes down, am I going to want to sell or am I going to want to buy more of it?" Don't buy it if your answer is the former.
If you’re saving for a short-term goal, like a down payment for a house in the next five years, the risk associated with stocks makes it more likely you’ll lose money in that time frame. That means the percentage of your investments in stocks will decrease. If the time separating you from that goal is less than five years, invest in a money market fund or a bond fund. Both will bring you lower returns than stocks but are safer places to put money in the short term.
Investing in the stock market can often seem like a strange, mysterious process that’s impossible to learn. What are the top stocks to invest in? Are there cheap stocks to buy now that I’m not aware of? What are the best stocks to invest in 2017? How much money does it take to get started? And when can I expect to see a return? Good news! It doesn’t take a genius to learn investment basics and that’s exactly what we’re going to teach you – welcome to investing 101.
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When it comes to investing, time is your most powerful tool. The longer your money is invested, the longer it has to work to create more money and take advantage of compound growth. It also makes it far less likely that one harsh market downturn will negatively impact your wealth as you’ll have time to leave the money invested and recover its value.

Real estate investing is nearly as old as mankind itself. There are several ways to make money investing in real estate, but it typically comes down to either developing something and selling it for a profit, or owning something and letting others use it in exchange for rent or lease payments. For a lot of investors, real estate has been a path to wealth because it more easily lends itself to using leverage. This can be bad if the investment turns out to be a poor one, but, applied to the right investment, at the right price, and on the right terms, it can allow someone without a lot of net worth to rapidly accumulate resources, controlling a far larger asset base than he or she could otherwise afford.
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