Heres some advice given to a friend I hope might also help others. He was asking about setting up an account with an online trading site, Scottrade. I advised: If you do have a substantial amount to invest you need to consult a reputable, experienced, and respected broker or financial planner. My step dad was a very good one and taught me how to handle money. online trading is for people either with money to burn who can afford to play the markets and lose because that method rarely achieves long term growth and not all that much short term growth for the inexperienced investor or is for ambitious money nerds who spend many many hours researching hundreds of companies to analyze performance, growth, and market position in order to assess the occasional solid growth stock. Like, maaaaaaany hours of thorough research. You can either invest in high risk higher yield items like stocks or go for a smart, long term growth investment with much lower risk like bonds or Annuities, or perhaps an IRA even. (Good bond rates are around 2.5%. If you find a 3 or 4% you have struck gold.) A good financial planner can help you think out your needs and wishes and find what will work for you. Remember that a fool and their money are soon parted and that nothing makes us foolish faster than our pride. Good luck and grats on having some scratch!
Posted on: Sat, 26 Jul 2014 09:30:28 +0000
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