Want to play the stock market?

Question

I would like to start investing for my retirement. I would like to know how I could get started without having to pay a finacial advisor and things of that nature. Is it possible for me to do this over the internet? Have I made my question clear?

Answer 1

stock market is not a place to play,

It is a place to invest, where share capital of the companies is being traded.

Invest in the Reliance industries limited, you will be happy in future

Answer 2

Can you afford to put $5,000 in an IRA this year and next?

If so, go straight to Vanguard.com and start a roth ira using the Target Retirement Fund for the year closest to the year you expect to retire.

Answer 3

You can easily do it over the internet. But beware: You can invest like a kid, or like an adult. Playing the stock market is a losers game.

The proper/adult way to invest for retirement, based on tons of acedemic studies and common sense, is to follow these principles:

1. Do not chase past returns. People that buy funds because they have done well in the past are doing exactly that.

2. Do not market time. Market timing is buying based on your (or your newsletter, or your TV, or neighbor's) guess about what is going to happen in the future. Even if someone knows something, you've already missed the boat. The price already reflects what you just found out.

3. Use index funds. Over time, index funds outperform actively managed funds, mostly because they do not have those high expense ratios. Some actively managed funds do beat their index, but the ones that do usually do not do so consistently. So why gamble? Use index funds. If you want to use a few actively managed funds, make sure that the costs are very low. Vanguard has some good ones.

5. Diversify. Don't put all your eggs in one basket. Own a mix of bonds, domestic equities (large, small and mid cap funds), an international fund and perhaps a REIT (Real Estate Investment Trust) and emerging market fund.  Four to six funds is all you need. Know your risk tolerance and set up an appropriate asset allocation. Rebalance as needed.

6. Consider taxes. Use the least tax efficient funds in your tax-deferred accounts and the most tax efficient funds in your taxable accounts.

You have a great opportunity to do it right. Go here for more info:

http://www.saveyournestegg.com/index.htm...

And, read what these people have to say:

http://www.ifa.com/Library/Quotations.as...

Answer 4

I asked my accountant if he could do my books for free. He told me to go away and multiply.

Answer 5

Hi, Bill Pay,

You're smart to be thinking about investing for retirement, and also how to keep expenses low. People generally pay far too much for advisors, commissions, mutual fund fees, interest etc.

I suggest getting a dummies book on IRAs and other retirement accounts so you learn the basics of what's available.

If you have a 401K or some other deferred retirement plan at your job, you should take advantage of it.

There are special plans for the self-employed.

You didn't give any details, so we can't know what applies to you. But you could get the full list and details from the right dummies book. Hey, you can probably buy it used on Amazon for just a few dollars.

Once you know what kind of tax-deferred account is right for you, you need to think about what kind of investments you want to buy through them.

I am totally biased toward income investments -- especially because in retirement accounts the taxes on the income are deferred until you retire, so that's a good way of taking full advantage of the tax deferral.

I shouldn't use this space to promote the book I wrote in income investing, but in my biased opinion it's the best available.

thanks Rick

Answer 6

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