ORLANDO. (Ivanhoe Newswire) — Fifty-two percent of all Americans invest in the stock market. Although it can be a tricky concept, Investopedia breaks it down. Essentially, it’s a market with many different companies that you can invest in. The company can take your money and make more money off of it, while you then own a small piece of that company. Experts say it’s a way to become wealthy without the risk of starting your own company. If it sounds like something you would be interested in, here are some tips to get started.
Step one is simply to know the goal for every dollar and then plan.
Financial advisor, Michael Clark, explained, “Is that dollar going to be set aside for retirement? Is that dollar going to be set aside for life insurance? Is the dollar going to be set aside for say a college fund for your kid?”
But, where should you invest first? Experts say to take the easy route in the beginning. You can invest directly through your bank or your 401-k. Before investing any money at all Clark said, “I encourage you to have an emergency fund because when you buy stock, it’s a long-term investment.”
So, what’s the minimum amount you need to start?
Clark detailed, “There is no minimum for which I recommend that somebody start with. I think a lot of people have that in their mind and they use that as an excuse to not save money today.”
If you’re a little uneasy about investing you can go online to practice. Websites like wallstreetsurvivor.com, marketwatch.com and smartstocks.com give you pretend money to invest in stocks and practice. But be careful because these can become addictive.
Experts say you may not need a financial advisor, but it’s a good idea to get advice from an expert or someone currently investing in the stock market before investing.
Contributors to this news report include: Brogan Morris, Producer; Roque Correa, Editor and Videographer.
