Do You Buy Stock?

You are interested in buying individual stock? Mutual funds are much less risky and volatile.

My husband and I do have some individual stocks but they are just a small percentage of our overall financial portfolio. Too much risk for our liking.

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No, there are too many unknowns today.
My husband and inlaws do. For every one they hit it big on, they have several that went bust. If you have money you can invest, mutual funds are the way to go so the risk is spread out.

Suze Orman, Clark Howard, and Dave Ramsey have tips on how to buy.

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Personally, once I have money I can lose... I'm hoping to follow in my grandfather's footsteps. He bought, but he NEVER sold. He bought stocks with good history of always paying their dividends.

It's not sexy. Brokers HATE it. Companies literally pay you pennies. I helped with his books off and on, and he recieved HUNDREDS of checks every month. Most for just a couple dollars here, twenty three dollars there, 72 cents in another, oh! 100 in this one....

But after all those checks were added up... and after 50 years of buying dividend stocks, he was bringing in apx 10k a month on dividends.

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I admit that my husband does most of the research on the stocks but we discuss them before he buys. He has a pretty good 'sense' about them when he's looking at them, but does subscribe to "Dow Theory Forecasts" newsletter. I think you can get it online at www.DowTheory.com.

I look at it differently than most. I don't want to support companies where I do not agree with their corporate strategy or business practices or politics. So that limits some of the biggies in the corporate world. But I figure if I won't shop at a certain store, or buy certain products, I certainly am not going to support them in buying stock.

And I really, really have a hard time with 'investments'. I'm an 'under the mattress' kinda girl. I had the money, I still have the money and I can still use the money. With investments or buying stock, it is just like gambling. Now having said that, we've done well. But again, it's due mostly to my dear husband!

Good Luck but be careful.

LLK

We don't buy individual stocks - we invest in mutual funds, which are spread out amongst many companies and less risky. Meeting with a certified financial planner would be a good place to start. Also, on-line you can check out The Motley Fool website, at http://www.fool.com, especially under "How to Invest".

Go see a financial planner. When I saw one he did a profile on my net worth and then help assess my level of comfort with the risks involved. He then advised on different options for me. Mine doesn't charge any fee to talk to him, his fees come in the buying or selling part. I agree that mutual funds are less risky than individual stocks.

Mucking around on smartmoney.com is where I started(and set up a mock portfolio with the picks I was thinking of investing in)...and I read a few books from the library...then I did tutorials offered on banking websites - and nearly threw up when I made my first stock purchase. (I'm a LOW risk type person - can you tell?) I'm much more comfortable with the process (and the risk) now, because I can actually see the reward. Happy learning!

DO NOT jump in and do this unless you fully understand the aspects of it.

Get a financial counselor you know and trust and let someone guide you until you feel comfortable enough to go on your own. There are good options for people to do this on their own but you must understand the system or you will get very frustrated and lose your money you now can invest.

Don't do the "real" thing until you have learned it. Again, a financial counselor who understnad what you want to do will help you. NOT ALL financial counselors are out to sell, some are there to guide you. Find a good one.