GF¢ 021: My Investing Journey – How I Got Started Investing

How I got started investing.

People get overwhelmed with investing because they don’t know how; they’ve never had an example, or parents, family, or friends who have shown them how.

This podcast will show just how easy it is to invest.

My Investing Journey – Podcast Outline

• First got started through Mom -Began investing for me when I was in high school – put $2,000 in a fixed annuity in a Roth IRA, purchased through an insurance agent. 4-4.5% return
  • Why would a 20-something have a fixed annuity? Think C.D. through an insurance company; does not make the 8, 9, 10% the market can make.
• Moved into a Roth IRA to invest funds.
  • Lesson: If your parents have invested for you, FIND OUT what and how they have invested.
• More exposure as a financial advisor, intern. First exposure to the stock market
  • This was when the tech bubble burst and our country went through 9/11 – the NASDAQ tanked, tech stocks were being sold 90% less than what they had been worth a year prior
  • First exposure to buying stock – Lucent (no longer exists), $8/share
    • 25% discount NOT on stock, but on commission.
    • Introduction to stock investing
• Began a monthly investment in 1 mutual fund, didn’t know anything about it.
  • Began a Van Kampen Comstock fund at $25/month, which also went to a Roth IRA.
  • Lesson: You do NOT need a huge wad of cash to start investing – with compound interest, a small amount of money can turn into a big amount of money over time.
• 3^rd important part of the start of my investing journey – 401(k) with 6% matching at A.G. Edwards and Sons.
  • Great investment options, let you change options more than once/quarter, good track record with mutual funds
  • $25-$50/month + 10% 401(k)
  • It does NOT take a lot of money to get started investing – it all adds up.

Resources

Grow Your Dough Throwdown - See how I invested $1,000 across 7 different online platforms.

• Best resources for beginning investors:
  • Scottrade (for the more independent beginner)
    • https://www.scottrade.com/
• • Betterment (for the beginning investor who needs a little more help)
    • https://www.betterment.com/
    • Very easy to set up, user-friendly, great for a newbie.

GF¢ Podcast Sponsor

Big thanks to Betterment for being the official sponsor of the GF¢ podcast!  You can learn more how about how Betterment is changing the way you invest here.

My Investing Journey – Podcast Summary

In this podcast, you’ll learn the following:

1. How my mom started an investment for me.
2. What my first experience buying stock was like.
3. How I built up my investments with a great 401(k) plan.
4. Why you do NOT need a huge wad of cash to start investing.
5. Resources for you to get started with investing
   1. Scottrade, for the more independent beginning investor (http://www.scottrade.com)
   2. Betterment, which is great for the newbie investor (https://betterment.com/).

Click here to subscribe to the “Good Financial Cents” Podcast in iTunes.