Do you have problems getting started? Most people do, so the same solutions that work for them should work for you. Don’t feel you have to begin perfectly and accomplish everything immediately–that’s not how anything else in your
life has ever worked.
- Not enough money – Got you covered, since the point of investing is to wind up with more money. More helpfully, start with any fixed amount or percentage of income per month, then gradually increase it.
- Too much work – Only if you do it wrong. Set up automated transfers from checking to an account at Schwab/Fidelity/Vanguard/anyone else good & low cost. Once a year move the money into investments.
- Don’t know what to buy – Easy! Buy an S&P 500 index for high diversification and sub .5% cost. Read Frank Armstrong’s book.
- Don’t know when to trade – Good! Trading often is a disaster and assumes you know more than everybody else.
- Don’t want to spend a lot of time – Perfect! We do better with less information.
- I don’t have enough confidence – Great! Those who do lose money. For instance, men trade 45% more than women and earn 67% less.
- Sounds tiring – Valid point, as willpower is a scarce resource. Automate your savings, 401k, IRAs one at a time and then let them work for you.
- I don’t have a stockbroker – That would only be a problem if the professionals were right more often than they are wrong. Use a discount broker and don’t use their professional advice.
