We've been getting a number of of new or beginning investors here looking for advice. With the wealth of knowledge we have, I can honestly say that they've come to the right place.

However, with so many threads covering so many areas of investing, it's difficult for a beginning investor to get a comprehensive understanding of finance; furthermore, we can get the same questions in many places.

Hence, this thread.

Some ground rules, if I may:

1. Please don't post the same advice more than once. Look through the thread, then come up with something that hasn't already been covered. This goes, especially, for posts of the "I agree with so-and-so" variety.

2. Please try to make your advice as general as possible. For example, avoid posts of the "Don't buy AAPL" variety. Prefer something like, "When you're young, buy stocks, when you're old, buy bonds."

3. Please explain the reasoning behind your advice whenever practical. It's much better for an investor to understand why he's doing something, rather than simply knowing that he should.

I think that's about it. If other useful rules spring to mind I'll amend the list.

Have at it!

 

If your employer matches your contributions to a retirement account such as a 401(k), you should do everything you can to save at least as much as the limit your employer matches.

Why? It's free money; that's why.

For example, if your employer will match half your contribution up to 10%, you should save at least 10% of your gross pay in your retirement account. When your employer matches that he contributes 5% of your gross pay to your retirement account. That's like getting a 5% raise for doing no additional work. That's a deal that's hard to beat.

 

How do I learn about stocks and investing in the stock market?

Watch Mad Money on CNBC weekdays at 6 or 11PM Eastern. If nothing else you will be entertained and think of investing and money as something fun and enjoying. After watching the show for a few months a lot of what we're talking about is going to start to make sense. You'll be more interested in your money, more studious about your investments and have the confidence and understanding to make better decisions. It's an excellent way to start out and costs you nothing. Call it Stock Market 101.

When you're ready watch Fast Money on CNBC at 8PM Eastern. It's much more advanced but still a hoot. By this point you'll be learning all sorts of things on your own. Call it Stock Market 200.

Have fun

 

Not sure about tips, but I've been pretty lucky in the market. The only relevant advice I can give this thread is to avoid bank accounts.
Keep as little as possible in a savings account - enough to cover bills and some security money, but it's an insulting interest rate. Almost any mutual fund will beat a bank's account, even a CD.

 

Is there a quick assessment tool that gauges where I am and what I will need for retirement?

Here is a nifty tool to quickly assess what you have and will have or need for retirement for the 401k, retirement minded investors -

http://personal.fidelity.com/planning/reti...&psite=prhpeasy

Ensure you are using monthly total contributions into 401k, IRA, Roth, etc.... Calculate a withdrawal of 3-4% "On-Track to Have". This will be your annual withdrawal without totally depleting your nest egg in short order.

Enjoy!

 

Here are some other tools for IRA and retirement income planning

http://www.troweprice.com/common/index3/0,...253D8278,00.htm

 

Make sure you factor in taxes to your investment choices. Maxing out your 401(k) is typically more advantageous to you if it will lower your tax rate than opening a brokerage account, even though stocks are more sexy.

 

I'm an investing n00b and this thread is great. Please, keep it coming

 

1. Only invest what you are willing to completely lose

Why? Because nothing is guaranteed, that's the risk. The reward you seek is typically proportionate to the risk you bear. The reason to enter the market is to reap the larger reward but be prepared to face a larger risk.

2. Set a loss threshold (the amount you're willing to lose before you sell) when you purchase the stock and stick to it!

Too many people new to the market react poorly when their stocks decline (re-read number 1), sell their holdings, and take the hit. Often times those same stocks bounce back after they have sold on emotion. Set limits in the beginning and stick to them, your mindset is much more clear during this time than when your holdings dropped 10%.

Chris

 

Chris good comments....I agree 100%

Risk is viewed in many ways...if you sit with a broker and you take his "allocation test" and you come up conservative...he'll put you in bonds...well we all know Bonds can lose value...so to a broker bonds are safe, but to myself and many other guys we view risk as in "can you lose money" if its yes, then its AT RISK, if there is no chance of loss than its SAFE....pretty simple to me...but others have different opinions.

So be aware if you sit with a broker or stock guy, their defination of RISK is different than others...