Getting started
Question: Hi, I really want to buy some stocks but I don’t have a clue what to do or how to get started. Could somebody please help me?
Answer: Buying stocks is the easy part. Just call a broker and they’ll tell you how to send them money. I’ve gotten good service from www.bidwell.com for instance, but there are lots of others.
The more important part is figuring a total financial strategy. The FAQ covers this, but the basic idea is to figure out how much money you need to keep as a reserve in case you lose your job, and how much risk you really want to take on. Do all of the preliminaries such as balancing your checkbook, making a realistic budget, and tallying up all of the assets and liabilities that you already have.
Before buying stock, pay off any credit card debt; that works out to a risk free tax free 14%-18% investment. Other non-real estate loans (e.g. current student loans) should get paid off too, unless they are at really low interest rates.
Then, once you have the leftover money, that money that you could live without if you had to, use it to buy stocks.
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