If you have a workplace program like a 401k you have a program that is
already setup and all you have to do is see your administrator, sign some
papers and you're on your way.
The plan administrator has all the information you
will need. Some company's hold lunchtime meetings so that you can gather
information and ask questions. Coworkers can also help.
A 401k, or workplace investment, is an ideal way to build wealth. Most
companies that host a workplace program will also match funding with the
Matching is where the company will add a certain amount of money that you
have elected to have taken out of your pay for the program. Some companies
will match dollar for dollar.
So not only do you win from getting extra dollars from
your company, you get wealth from stocks rising over time If you start out
early in life, 20's or 30's, you'll have a nice large nest egg.
Ok, lets review...
1) Hire a CEO. That's you. To control your investments like a business.
2) Hire a CFO. You again or your spouse. Develop and maintain the budget. Build a
cash reserve or emergency fund.
3) Open a brokerage account/ buy direct from companies.
4) Decide how to invest. You do the buying and selling. Buy a fund and
let the fund manager manage. A
combination of the two. Or, hire a Certified Financial Planner.
Buying, selling, making money.
This is the easy part... 1-2-3... you buy it,
watch it grow, sell it and make tons of money...
Easy... Well buying is fairly easy, stay away from those Enron's and
WorldCom's, and banking stocks can really upset a portfolio.
Remember if you are uncomfortable with buying stocks, buy a good fund in
the sector you are interested in, i.e.., healthcare, energy, retail, etc.
And also remember to diversify. Do not put all of your money in one stock,
Watching your investment grow is painful sometimes. Well, most of the
time. We'll get into how to handle this later.
Selling is the real difficult part of it all. When is a good time to sell
When it's up and you have made a lot of money? or down when you can't
bare it any longer.
Selling is always the tough one to answer. Which leads us to goal setting.