The importance of good common sense for successful investing
Posted on: 01/19/2016
Contributed by Vern Sumnicht
Here is a post I recently read on an investment website:
This is why I will still be broke when I die. After 24 years, 7 months and 16 days serving in the United States Army, I still haven’t invested in the stock market. I never got a tattoo, although I’ve wanted many and I’ve never invested in the stock market. I really wish I would have studied more when it comes to the markets. I guess I will only have the best advice on how to turn people into pink mist to pass on to my grandson. You guys are like swimming in a waterless pool with land sharks everywhere.
I had to leave a response (comment). Here is what I posted:
You risked your life for all of us in the U.S. Richard. Thank you! I’ve been helping people with their investments for 33 years now… after getting an MBA and CFP. It would be an honor to help you get a start investing in stocks. You don’t need a Ph.D to invest in stocks. You are likely better off without one–your best education is a little common sense. You obviously have plenty of common sense. The stocks discussed on this website aren’t what you need! Leave them to the land sharks. Don’t pay for any newsletters, websites or videos. Despite other things you are likely doing with work, real estate, etc. At your age, you need to determine an amount you can save regularly every month. Open an account at Fidelity, TD Ameritrade, E-Trade or etc. (you shouldn’t need a stockbroker for this). Invest that regular amount of monthly savings in an S&P 500 index mutual fund or even better, an S&P 500 index, Exchange Traded Fund (ETF). Do this every month, same thing, over and over, always using the S&P 500 index. Note: I’m not saying you shouldn’t have a fee based CFP to guide you with personal finance issues or that you won’t need any other sources of retirement savings/income (401(k), IRA, social security, pension, part time work, rental real estate, hobbies, etc.). However, this information will get you a start on investing in stocks and the equity based retirement savings you need. Buy-the-way, you can feel good about passing this advice onto your grandson and getting that young man started investing in the stock market. God Bless You!
If you have questions about investing or retirement planning, please do not hestitate to contact me.
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