I would like to be a investor. I am in high school, but after I go to college and graduate, I want to be a investor working for financial companies. I heard that people can invest in the internet by using scottrade.com and others. What is the big difference? How much can people earn by using it? I was going to give an answer to your question, but after reading Mark's answer I am not certain I can add a great deal. Read his answer a couple of times. I will add a few comments.
Many if not most beginning investors/speculators attempt to make a fast buck in the stock market. Most of those, about 90% wind up loosing money. The other 10% are gifted and can actually make a lot. Some of those 90% eventually learn how to go about investing, maybe 50%. The others either keep doing what they started out doing and continue loosing money or give up. I count myself among the 50% who eventually learned.
If you wind up working for a financial company, you will have resourses at your disposal that we plebian investors do not have. You will also have to work very hard at your job to be successful. I admire your initiative. I did not even think about such things
until I was in my thirties. And then I lost money in the stock market because I listened to the media and sold out when my investments lost money. Had I held on for 2 more months
I would have made thousands.
To be a wise investor you have to learn several things.
First to live on less than you earn and learn to save. Avoid spending on impulse things. Learning to sacrifice will allow you to first become a saver. First thing to save for is to have
an Emergency Fund. Step 1. Save $500 to $1000 for an Emergencyn Fund. Keep the money in a money market account. Using www.bankrate.com find a company that offers a high interest rate (near 5%) that you can qualify for.
Step 2. Get out of credit card debt. Congratulations if you
aren't in credit card debt. Almost everyone is. The wise person will NEVER allow himself to get into credit card debt.
Wise is the person who is in credit card debt to quickly untangle himself. Step 3 Increase your Emergency Fund
to cover 3-6 months of your monthly expenses. (The only way you can know what your monthly expenses are is by having and using a budget). Step 4 put 15 % of your total
annual income into retirement investments. (Roth Ira's and Roth 401K are the BEST investments you can make un
less your employer offers a matching program. Step 5
If you are thinking of raising children consider investing in
education programs to pay for their college. Step 6
If you have a mortgage get one that is at a FIXED interest rate and with a payoff not longer than 15 years. This will save you thousands of dollars. Wise is the person who
when they buy a house has 20% or more of the downpayment. You will save yourself thousands of dollars.
Example in 1980 I bought my first house for $47,000. I only had $1,000 to put down. I financed $46,000 at a steal
of only 11.5%. (Six months later the interest rate exceeded
22% and thousands lost their homes who had variable
interest rate mortgages). I financed my house over 30 years.
If I merely made the payments for 30 years. At the end of that time I would own my $47,000 house. I also would have paid an additional $126,000 in interest. Paying interest is stupid. Even if you are in a 30% tax bracket. For every $1000 you pay in interest the government gives you $300 back. I will do you better. For every $1000 you give me
I will give you $600 back. Is that a good deal for you??
Absolutely not. Learn how to invest in mutual funds.
Investing means you will not use the money for at least 5 years. I have accounts at Scottrade. They are good because most trades cost only $7.00 to purchase stocks
or $7.00 to sell stocks. But buying stocks can be very risky.
Mutual funds are more diversified and they have portifolio
managers who are very good and buying and selling the stocks in the mutual fund. If you apply basic concepts
you can average 12% per year on average per mutual fund.
Last year I made 15% to over 30% to one portifolio earned
73%. The rule of 72 says that if you are making 12% on average on your portifolio and that you do it for 6 years
you will double your money every 6 years. If it is earning
24% it will double every 3 years. A few principles are in order. 1. The borrower is slave to the lender. Try very hard
never to be indebt. 2. Those who hasten to get rich will
fall into harm. The way to being a good financial steward
is little by little. As my money/investments grow so must my
skill in managing it. Finally learning to be generous gives you a life. Those who are greedy lose the joy of living. It is a blessing to be able to help you. If you follow these principles you can live a wiser life and better provide for your family. But be willing to help those around you
who are floundering. Life is so multifaceted. WE all need help. Some with finances. Some with relationships.
There are 2 programs I would recommend that you investigate. First is Dave Ramsey. His website is www.daveramsey.com. His book is terrific "The total money
makeover" . You can get it from the library and read it for free. Another great program is found at www.crown.org.
I am so proud of you for asking such a mature question.
I hope you will consider my words because they are time- tested. Every step is repeatable by millions. These steps
really work. Best Regards! sir tell me your nearly office at shahdra Hey there..
good choose dude.
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