Sunday, August 26, 2012

Overcoming Fear of Investing -

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Conquer Fear of Investing

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  • Investing is a deep mystery and I am completely lost.
    • Are you lost or just not interested?? In either case, start simply. Read the Beginning Investors posts found in the Categories section on the right sidebar.
  • I'm afraid I will lose money.
    • Don't jump into the market with all your savings.? Dollar cost average and invest a modest sum every month over a span of six to twelve months.? Take longer if you have a sizable nest egg.
  • This is a bad time to enter the market.
    • The worse things look the better it is for investing.
  • I do not have a clue which stocks to select.
    • Don't invest in stocks.? Use index funds or index ETFs.? There are many example portfolios found within this blog.? Ask questions is you are unsure what to do.
  • I read about the need to analyze stocks and I don't know what is involved.
    • This problem is removed when one uses index funds or ETFs as the investment vehicles. Stock selection is a game you do not want to play.? Read Charles D. Ellis' book, "Winning The Loser's Game."
  • I can't keep up with investment discussions at the water cooler.
    • These are conversations best left in the word trash bin.? Never act on a hot tip unless you want to get burned.? Don't get greedy.
  • I'm too busy to think about investments.
    • If you set up your portfolio using index funds, you will not need to take more than an hour or so a year to rebalance the portfolio.? I do suggest learning how to use the TLH spreadsheet and that will take time until you learn how to use it properly.

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Source: http://itawealthmanagement.com/2012/08/25/overcoming-fear-of-investing/

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