| The best investment advice I ever heard is not | | | | Then start investing money every month and |
| the financial advice you hear most often. Every | | | | earmark it for a longer-term goal. Examples: for a |
| time you turn around you get the same thing | | | | down payment for a home or for retirement. |
| from finance professionals: start investing early in | | | | Meanwhile, start your investment education and |
| life and invest money whenever you can. That's | | | | continue to learn investments as you start |
| fine, if you were born with bucks. Most of us | | | | investing. Your age doesn't matter. I've has retired |
| were not. | | | | folks tell me they're too old to learn and too old |
| The magic of compounding is forever shoved at | | | | to invest. Well, if you've got some cash you'd |
| you for two reasons. First, the theory of | | | | better learn to put it to work. And if you don't |
| compound interest can not be disputed. The | | | | you better figure out a way to set some aside. |
| amount of financial assets you accumulate will | | | | Uncle Sam can not afford to take care of you. |
| depend on three things: how much you invest, the | | | | Neither can your present or past employer. |
| rate of return you earn, and the amount of TIME | | | | Start the learning process by concentrating on |
| your money has to grow. | | | | investment basics. No matter what your station in |
| Second, the investment industry wants you to | | | | life, some investments are appropriate for you |
| invest money with them. That's because that's | | | | and some are not. For example, if you have |
| how they make money. The more you invest | | | | financial problems and a negative cash flow, |
| and the longer you invest with them the more | | | | investing in stocks in an IRA or 401k should not |
| they make in charges and fees. | | | | be a priority for you. |
| That's an obvious fact of financial life. But what is | | | | Why? You need to concentrate on getting your |
| the best investment advice that anyone can | | | | financial house in order first. As you free up some |
| follow, even if they're not presently in a position | | | | cash you then need to start investing in safe, |
| to invest money. Invest some time and effort | | | | liquid investments like money market funds. Once |
| and get an investment education. | | | | you can see financial daylight you move into |
| An investment education does not require a | | | | stocks and bonds and retirement accounts to get |
| degree in finance from a major university. In fact, | | | | growth, higher income and tax breaks. |
| a finance degree has little to do with learning how | | | | Your first lesson once you're ready to invest |
| to invest money as an individual investor. As a | | | | money for longer-term goals: start investing in |
| personal note, I left a major university with an | | | | stocks and bonds with mutual funds. They handle |
| MBA (finance major) years ago and knew little if | | | | the asset managing (picking stocks and bonds) for |
| anything about the stock market, bond investing | | | | you. |
| or mutual funds. | | | | Your second lesson: continue to do your |
| Start investing as soon as you have your | | | | homework. Investments and investing are not |
| personal cash flow situation under control, with a | | | | rocket science. You can learn the game if you |
| cash reserve in the bank to handle emergencies. | | | | start by learning investment basics first. |