Expert: Dr. Joseph de Beauchamp - 6/20/2007

Question
Dear Dr. de Beauchamp,
   I am an 18 year-old with absolutely no experience in investing or money matters other than simple bank accounts and the hard cash I have made throughout my life. I don't even have a credit card, although I have considered getting one to start building my credit score. Recently, my interest in the stock market was sparked, partly because I can imagine myself making some money in the short term, and also because I believe building experience in dealing with the stock market can be very beneficial to me later in life. Introductions aside, my question to you is this: How can a kid such as myself get into stock market investing simply and easily, without too much risk or need of prior experience and know-how, while maintaining the ability to get out at will? Any insight and advice you can give to me is greatly appreciated, thanks.

Answer
No short term ways to get this done. You would be best to go to the local library. There is a couple of very large books to read. Valueline and Morningstar are great books, 10000 pages, to read over. This is a good learning experience and what I did forty years ago. I learned alot and would recommend this. I think you will end up making wise decisions to invest small amounts in a mutual fund, since they are very good and the risk is spread out between numerous stocks and bonds. Most mutual funds are a better way to invest, and for even old folks like myself.

Dr. Joseph de Beauchamp
Your finance professor