| The first step to investing is to develop a plan. You | | | | (k) plan, therefore, it is very important to contact your |
| should research and explore your resources before | | | | program representative to obtain more information. |
| making decisions on how you will invest your money. It | | | | Although investing through your employer is a |
| is often useful to make a list of concerns and desired | | | | convenient option, it is not the only option. If you are |
| outcomes from investing. | | | | able to invest on your own, the first step to investing is |
| Common questions to explore are: | | | | to do the research. The most common type of |
| * Am I investing for long term, short term, or both? | | | | investing is in the stock market. However, since the |
| * Am I willing to take risks? And at what cost? | | | | stock market is unpredictable, you need to research a |
| * What are the advantages? Disadvantages? | | | | company by reading the newspaper, or seeking |
| Depending on your answer, your first step to investing | | | | advice from a professional. While doing your research, |
| will vary. Typically, if you want to invest for long-term | | | | you should find a stock that you can afford, and that |
| retirement goals you can find investment plans through | | | | has a history of making a profit. For those budget |
| your employer. For example, if you work for a public | | | | conscience buyers, you can buy stock ranging from |
| owned company you may be able to invest by buying | | | | $7 - $29 per share. If investing is a short-term goal for |
| company stock options, usually at a discounted rate. | | | | you, you can purchase stock when it is cheap, wait a |
| The benefit of this is that you are using after-tax | | | | few weeks until the price increases, then sale your |
| payroll deductions to purchase your stock plan. | | | | stock for a profit. However, if you want guidance with |
| However, if you cannot buy company stock, inquire | | | | maintaining your stock, you can hire a broker who will |
| about investing by participating in your employers | | | | advise you and manage your stocks for a commission. |
| deferred compensation program. Depending on your | | | | The first step to investing is realizing that you are |
| job, the deferred compensation program can go by | | | | never too young or too old to start investing for the |
| many other names, but commonly it is called a 401 (k) | | | | future. Investing is not something exclusive for wealthy |
| or 457 plan. To get started with this type of program, | | | | people; if you do not want to retire broke, you should |
| speak with your program representative as there are | | | | look into investment plans. In most cases, you can |
| different investing options ranging from conservative | | | | invest as little as $50 a month in order to join a |
| investing to aggressive investing. In addition, some | | | | retirement plan program. |
| employers match employees contributions to their 401 | | | | |