In the new Investing 101 series, STACKS Magazine will provide readers with easy-to-understand steps and information on how to invest. We realize that in this day and time, finances are a major issue. Understanding ways on how to properly manage and invest your money, will hopefully in due time pay off and allow you to secure your financial future.

If I want to invest, where do I start? What do I do?

Step 1: Start your portfolio by setting up a brokerage account.
The average person can surf the net and determine which type of broker, traditional or discount, is best based on their needs. Traditional brokers are considered professional money managers. These firms will offer advice to you as to what investments are best. Discount brokers, on the other hand, allow the individuals who know a thing or two on how to invest, the opportunity to make their own decisions on what stocks, bonds, or mutual funds they want to invest in. Whether you choose a Traditional firm or Discount one, each will charge a “commission”. This fee can range from $5 to higher. Traditional firms will charge more because they offer more services and will appoint you your own financial advisor.

Several investment companys you can solicit these services with are: Traditional – Merrill Lynch and Charles Schwab; Discount – Etrade, Ameritrade, TD Waterhouse, and Suretrade.

Step 2: Open an account
Many people believe that it takes a lot of money to start investing. That is NOT true! You can open up an account at one of these brokerage firms with as little as $500. Most firms will request that you fill out an initial application, online or via mail, and submit it along with your money.

Once your account is open, you can request that monthly direct deposits be made from your bank account to your brokerage account. What you don’t see, you won’t spend…right?! So the key here is to make sure you do not withdraw any funds from this brokerage account. You don’t want to start your investment account in vain.
See, this process is as easy as 1,2, 3. Begin your journey to financial freedom through investing. Along the way, STACKS Mag will provide additional pertinent information in the Investing 101 series. Stay tuned…