AboutJay Kay Expertise As a private investor for the past 40 years, I have experienced both bull and bear markets, and have lived to tell the tale. I should be able to provide you with serious, practical insights into managing stocks, bonds and mutual funds in your portfolio, along with useful information concerning most aspects of personal finance. No specific stock/bond recommendations furnished.
I've always had an interest in investing because I think its important to plan
for the future. This dawned on me a few years ago when I got a new job and
during the orientation, I was shown a video about the future of social security
and the prospects does not look good. Basically, it stated that by the time my
generation, Generation Xs reach the retirement years, social society would
either disappear or there would not be much money by that time since the
Baby Boomer generation will use it all up. That frankly frightens me and I now
realize that I cannot simply rely on social security alone, I need a backup.
Anyway, I'm very new to investing so I don't know anything about it, except
that there's no such thing as a perfectly safe place to put savings and that all
investment involves the risk that you will never see your money again. I am
interested in both short-term and long-term investing.
1. How can I get started on investing?
2. Do you recommend that I take courses at my local college to get a better
understanding of how investing works?
Best regards,
Julian
Answer I'll answer the second question first.
By all means possible, enhance your understanding of how investing works. Taking a course (or two) is one way, reading extensively is another, using the Internet is yet another, discussing the subject with persons knowledgeable is a fourth way. Keep in mind that nobody will have correct answers or useful strategies all the time. There are precedents that have been successful in the past, but no guarantee that they will work again. I believe you should be prepared to invest time as well as money on learning what matters in the fields of investments. Do not be overanxious to get started, and do not rely exclusively on someone else's judgment.
If you discover that you have neither the time nor the inclination to learn what is necessary, you must be prepared to lower your profit horizon by engaging the services of an "expert." In some cases this will be costly, with no guarantee of the desired result. In other cases such advice, or money management, can be reasonably priced, but again, with no guarantees. It is best, in my opinion, to make investing decisions on your own, as long as you know exactly what you are doing. Easier said than done. But realize how vulnerable you are if you, in effect, hand your investment capital over to someone else with instructions to make you financially secure.
That's my "take" on the matter. Everyone who invests has the same overall motive. Decide if you are prepared to try to fulfill that motive yourself. If you honestly don't think you are up to it, there are mutual funds, and there are investment advisers to guide you. Doing nothing, as you obviously realize, is not the answer.
