17 thoughts on “A Few Tips For First-Time Investors

  1. My advice: 1) max out 401k or employee stock program (if you have one); 2) invest in low-cost index funds that buy the whole market; 3) buy more shares regularly – whether or not the market is going up, down, or sideways; 4) sit back and forget what you bought for at least 10 years. Don’t be a day trader. You’ll be amazed how quick these investments compound!

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    1. I love this advice, Mr. FireStation! I read the book “The Coffee House Investor” and a lot of the key takeaways align with your advice. The biggest thing is sitting back, that way you have more time to spend with people, passions, hobbies you value. No use in chasing hot stocks when you have a long term investment strategy!

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    1. Emotion is everything, Penny! You’ve got this. 🙂 Initially, I always looked (too, too much). Now, I try to keep myself busy so the next check in isn’t until a month or later. I like that line as a goal for 2016 “Invest more and look less!”


  2. Awesome advice! Investing is one of my main goals for 2016, after 3 years of aggressive debt repayment. Although I’ve been trying to educate myself about the stock market, I still struggle with the ”figuring out how to read stock charts and analyze patterns” part. Any suggestion for beginners? 🙂

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    1. What a fantastic goal! 🙂 Yes, analyzing can definitely be quite challenging – a continuous learning process for me, as well. I would say check out resources and sites such as Wallstreetsurvivor.com and investopedia.com. The library never hurts either for book resources to learn! A lot of the investing I do is pretty long term and hands off (mainly index funds), so I try to not get too tripped up over analysis of stocks & patterns!


  3. My advice I tell everybody is a Roth IRA! If you can afford it, you should max it out every year. Contributions can be withdrawn penalty free, so you could kinda use that as a hidden savings account. Of course, that’s not advisable to take away from your retirement like that, but it’s the reason why I have no issues maxing out my Roth every year!

    Also. Invest at least up to the match through your 401k. Free money.

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    1. I LOVE Roth IRAs and the fact that there are no penalties to withdraw. I always encourage that, because you’re right – a hidden savings account is a great way to put it! Never give up free money & increase your contributions when you can to your 401k. 🙂

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  4. I love that the idea of investment fees is starting to make it into the mainstream more and more, and I hope a lot of your readers are resolving this year to know what different investment options charge. Because those fees can steal all of your gains, or even turn a good year into a bad year with a particular fund. We used to invest in traditional mutual funds (read: higher fees), and are so happy ever since we switched to Vanguard index funds (the lowest fees available). So after anyone gets comfortable with all of the great points here — budget, purpose of investing, style, etc. — make sure you get to understand fees and how best to avoid them! 🙂

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    1. Investment fees can be easy to neglect when you are just getting started with investing! It is incredible how much they can take away from your gains…if you choose to invest your hard earned money than the best option is to select investments that have low fees. 🙂 Vanguard index funds are amazing, and I’m so glad to hear you both made the switch! Great advice, ONL!

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