Posted by Eric Twitty on October 23, 2008
Welcome back!
If you have ever wanted to start investing some of your hard earned money, the time is now. Stocks have taken a plunge and there is a lot of value in the market right now.
If you are new to the investing world the first thing you should do is open an IRA or Individual Retirement Account. The money earned is tax deferred meaning you don’t pay taxes on capital gains or dividends until the money is withdrawn. There are restrictions on how much you can invest annually but you should do whatever you can to maximize your contributions.
Don’t rely on social security to get you through retirement. Put up as much money as you can to ensure that when you retire you can enjoy your life and do the things you want.
There is a great article over at The Motley Fool that will tell you everything you need to know about IRAs. Here it is:
Fool.com: All About IRAs
Read this article then get out there and get started. Don’t let this opportunity that the stock market is giving you pass you by. Pick up some of these stocks and mutual funds while they are still cheap. Don’t be afraid. If now is a good enough time to buy for Warren Buffet, the richest man in the world, then now is a good time to buy for you.
Posted by Eric Twitty on October 10, 2008
With the financial crisis going on in today’s economy, there is a lot of fear and panic out there. I know it seems like the economy is getting worse every day.
Where is the bottom of the stock market? You can find many “expert” opinions but no one really knows. Picking bottoms and tops in the markets is impossible. Here are some helpful ideas to get you on the right track.
Look for Opportunities
Focusing on all the negative things going on in the world today is not productive thinking. You need to look for opportunities. Stock market prices are extremely depressed right now. Are there buying opportunities? There are some companies out there with solid balance sheets whose prices are discounted. If you liked a particular company a year ago and you still like it today you should buy some shares. They will probably be deeply discounted.
Most mutual funds have been deeply discounted also. This may be the way to go if you don’t have any knowledge or experience in picking stocks. Just look for a fund with a good track record and buy some shares. Don’t worry about their current performance. Most mutual funds have been forced out of some of their holdings by people redeeming their money. This has really hurt their performance through these rough times.
Take a Long Term Approach
You need to take a long term approach to the market. It could continue to go lower in the short term, but in the long run the market has historically performed very well. What we are seeing is panic across all financial markets. Once the panic dies down, people will realize that there are some good buys out there.
Investing in the stock market is about aquiring assets that appreciate in value over time, and hopefully earning some dividends in the mean time. Don’t worry about what happens in the short term. If there are companies out there that you wouldn’t mind owning a piece of, then buy some of their shares.
Have the Courage to Do What Most People Won’t
There are opportunities out there. Those who have the courage to buy in these bad economic times will be rewarded in the future. Remember to “buy when the man on the street is selling, and sell when the man on the street is buying.” Most people get in the stock market after it has performed well for a long period of time. Have the courage to do the opposite and you will be rewarded with solid returns.
