Is the stock market a good idea?

[kmeyrick]

I work and save, work and save, and I just feel like I'm not making enough to do want I want.

1. Get another masters.
2. Get a condo.
3. Adopt from Central Asia.

My father says I'm good about saving, and that I should consider the stock market. Is that a good idea? I am a school teacher. I will correct your grammar and tell you not to be fresh but I don't know anything about stocks. Where can an absolute beginner, a little Alien from communist Mars, get clear information?

[katheek77]

PM velochic. She has tons of good advice, and can steer you toward some books.

[ChattyCat]

Yes, for long term investments, the stock market is very good. It is not necessarily the best idea for money you may need to liquidate in the near future. Some stocks are riskier than others. I recommend reading some good books for novices (hopefully, someone can recommend one), and maybe talking to a financial planner afterwards.

[kmeyrick]

You know what, after I posted I found 2 books on Amazon written for kids and teen about the stock market. I figured if any book would spoon feed me information, it would be those. If they're any good, I'll post my reviews of them so others might boost their income if even a little bit.

[velochic]

Investing for Dummies by Eric Tyson is the absolute best beginner book out there. He has no agenda, he's not endorsed by anyone, and his advice is SOLID and sensible. The stock market plays a vital role in the scheme of your investment portfolio as a whole (and although others here would disagree, I would *never* invest in individual stocks, but to invest through mutual funds only). So, the next book I would recommend is Eric Tysons, "Mutual Funds for Dummies". Finally two other books to look at after you've read those are "A Random Walk down Wall Street" by Malkiel and "Boglehead's Guide to Investing" by Larrimore, et al. Investing doesn't just mean investing in stocks... it means using a balanced (based on your own investing goals) combination of stocks, bonds, real estate, fixed-rate funds, commodities, etc. Educating yourself is, of course, the core element. Good luck!

[wednesday]

I invest in both a 401k through work, and in an IRA on my own. Both accounts are invested in mutual funds with a stock/bond mix appropriate to my age and target retirement (approx 30 years from now). This is a long-term stategy for funding my retirement though, not a way to make money fast. I don't think the average joe can really make money fast just by picking the right stock.

[kmeyrick]

Thanks so much for the responses. I know there's no get rich quick strategy, but I'd like to accomplish about two of my three goals in the next five years. I am switching to a frugal lifestyle, which will be an (ahem) adjustment for me. If I knew then what I know now I'd have worked my tail off in high school and college.

[velochic]

Originally Posted by kmeyrick

Thanks so much for the responses. I know there's no get rich quick strategy, but I'd like to accomplish about two of my three goals in the next five years.

(Bolding mine)

If your financial goals have a window within the next 5 years, absolutely, positively, the stock market... any "investing" actually... is *not* where you want to put your money. This is considered a short-term goal and you should be looking at CDs, Money Market Mutual Funds (*not* a true mutual fund, but a fixed-price interest bearing account), and anything else that is safe. Stock investing, either doing so through common shares or mutual funds are for mid- to long-term portfolio plans of 7+ years.

I didn't realize that your 3 points were the goals you were wanting to achieve through stock investing. No, those are not goals that warrant stock investing.

[AprilDaisy]

I read, "Chicks laying nest eggs", by a woman that started a 10 woman investment group. They did all the research, invested in their own with a broker, and kept track of everything themselves. The book explains what a stock market is, what it does, etc. The book also favors a "watch the market, buy individual" approach. I enjoyed reading the book though as I learned alot. I don't invest at this time.

[superstella]

And if you're in need of practice, might I recommend heading over to wallstreetsurvivor.com? It's a lot of fun lol. They give you $100k of play money, and you can build your own portfolio. You can research there, see how others are doing in comparison, there's a "Survivor University." A lot of tools in one spot, all for free.