Question by : What is the best way to learn about investing for a beginner?
I would like to be able to make decisions regarding my retirement accounts. What is the best way to learn about investing?
Answer by Kick
How old are you? The first decision to make right now is that you will put the maximum amount in an IRA every year. If you are married, then make sure your wife sets up her own IRA account and puts in the maximum amount every year. An IRA is like an egg shell. Inside that egg shell all your money is tax protected until taken out at retirement age after 59 and starting no later than 70 years and 6 months. If you set the IRA up with a discount stock broker, you can do stock trading inside the IRA. $ 5,000 is the max deposit in an IRA when you are younger than 59. That $ 5,000 is considered as coming from your earned income for the year. So it is not counted as income on your tax return, If you are only in the 15% effective tax category, that means you will get $ 750 more in your annual refund check or, pay $ 750 less in taxes. So you automatically get a 15% return every year. That’s why it is called the ‘no brainer’ investment. Talk to someone at H&R Block.
If you are a veteran, then the second thing you need to do is set up a stock brokerage account with USAA in San Antonio, Texas. You should also do all your banking, credit card, car insurance and life insurance with USAA. No one, and I mean no one, will give you cheaper prices and better service on anything. They have been Number 1 in customer service for years. They are so superior to anyone else it is almost a joke to claim second place. USAA will save you thousands in a life time..
The third thing you should do is buy the book Investing for Dummies. Read it at least three times. When you come to words and phrases you do not understand, you go to a site called Investopedia where they are defined in words and terms you do understand. Other than that, pay attention to financial news every day and don’t be too anxious to make an investment until you feel comfortable doing it.
BTW. Get your IRA account with a discount broker now. Your deposits can sit in a money market account inside the IRA until you learn about what to invest in. A maximum $ 5,000 deposit sitting in that IRA will get you a 15% return. Not bad for a beginner.
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