How To Invest:

The beginner investor will need to know how to begin the investing process. Their investing options for how would be: self-investing by using a “hot” tip or by reading financial newspapers and then finding someone to place the trade for you, the offline investing brokerage or the online investing brokerage. Examples of offline investing brokerages are: AG Edwards, Charles Schwab, and Mesirow Financial. Examples of online investing brokerages are: ETrade, Sharebuilder or TradeKing. Most investing services have some kind of investing class or tutorial to help educate the investing beginner about the basics of investing.

What It Will Cost To Invest:

The brokerage options involve setting up an account. The offline will give you more individualized attention and professional advice for a commission you pay to the brokerage. The online usually does not involve commissions, instead they will charge you a flat fee based on a time allotment or on the number of trades. The self-investing involves the most risk, depending on how you place your investing trades; usually a broker that may or may not be associated with a brokerage.

What Investing Risks To Take:

Your first risk assessment is in how you make your trades. Self-investment involves the most risk because you are basically relying on yourself for knowing what the smart trades will be. Offline brokerages involve the lower risk factor because you are paying for their knowledge, advice and the equipment to place and follow your trades. You basically rely on the expertise in offline brokerage to guide you specifically in your investing decisions. You pay handsomely for this expert guidance, and the likelihood of making better trades improves over the other options. The online brokerages give you great online tools to educate yourself on the world of investing as well as graphs, company profiles, and trade histories; all without the high price of commissions, but lack the individual attention of the offline brokerage.

The risk of investing follows the basic principal of:

You will stand to gain the highest profits by taking the highest risks and lowering your risks will lower your potential profits. Why People Invest:

Everyone has different reasons for starting an investment portfolio (collection of stocks, bonds, mutual funds etc that you are investing in). Some common reasons are: To grow a college fund, to grow a first home fund, for future travel plans, or for retirement; just to name a few reasons. Depending on your reason, you will be guided to either short-term or long-term growth investment packages or individual stock, bonds or funds.

When To Invest:

It is never too late to start building your investment portfolio; the important thing is to get started. Most professionals will also tell you that the “when” is also determined by when you are ready to invest based on having the cost to invest, when you have set up the “who will help you invest” and how you will invest lined up.

When to invest also depends on your strategy and how steady you are at waiting until the right time to make trades (buy or sell) to maximize your profits. Professionals can guide you but ultimately the timing of “when” is up to you, the investor.

Jim Cone is a retired RN and former Hospital Administrator. He hangs out at his website, www.diversified-investor.com