Why Do I Need a Broker?
Choosing a Broker Basics
Here's all you need to know about finding, evaluating and funding a brokerage account.
- Why Do I Need a Broker?
- 10 Ways to Size Up a Broker
- How to Invest $20, $100, and $1,000+
- What's Wrong With Full-Service Brokers
- How Do I Open an Account?
- Do I Need a Lot of Money to Invest Online?
- Can I Transfer My Current Account to a New Broker?
- Should I Go With the Cheapest Broker?
- What Are All These Different Types of Orders?
- Is Online Trading Secure?
If you want to buy stocks, you're going to need a broker. And who wouldn't want to own stocks? There is no place over the past 100 years where your long-term savings would have fared better than the stock market -- not in bonds, not in real estate, not in gold, and certainly not in Beanie Babies.
But before you enter your first ticker symbol on your Fool Portfolio tracker; before you start tracking the Dow's every move; before you run the numbers on a company's cash flow, you should set some expectations.
One good rule of thumb, we think, is that if you've got money you won't need for at the very least, five years, and hopefully longer, then you should invest it in the stock market. Money earmarked for earlier use (such as a down payment on a house, or a graduating senior's college tuition) should be put in a short-term savings vehicle like a money market account, savings account, or certificate of deposit (CD). And, heaven forfend, if you have high-interest credit card debt, send all your extra shekels directly to your lender and pay off that bill!
For the long-term money, there is no place where you historically could have gotten a higher rate of return than in the stock market, especially recently. As measured by the S&P 500, the market has returned a whopping 19% with dividends reinvested over the past 10 years. That rocks. In fact, it crushes the historical (since 1926) average annual S&P return of 11% (which still isn't too shabby). But this trend won't continue forever, and before you start investing, you should consider that.
Nevertheless, over the long term -- during bull markets, bear markets, Depressions, recessions and elections -- the stock market has been the place to be. And a discount brokerage account will get you there.
2009-03-17 10:19:24
COMMENTS ( 1 )
Investing Basics
Stock Quotes
There's more to investing than just the latest price...
• Free real time stock quotes
• The latest investing news
• Over 30 detailed financial reports
My Portfolios
My Portfolios is the web's most popular investing tracker. You'll enjoy...
• Automatic totals for multiple investment portfolios
• Track cash holdings & foreign issues
• Customizable views
Stock Screener
Tired of hearing about the same old stocks? Use our free stock screener to find the best stocks to suit your investment strategy.
Stock Screener
If you want to make more secure $Money$ the turbo way then I suggest anyone to take a look at WWW.icashsolution.COM
.....The great benefit of this legitimate site is that you can try the ((FREE)) demo play and test your skills on how much real $Money$ you can actually earn online! It's so easy, fun, & secure!
Remember, if you keep doing the same thing then you'll always get the same results. Why not try something new for a change at www.icashsolution.com