The Stock Market and Stock Funds
Growing Wealth for New and Seasoned Investors
For Stock Market Investing, We Give You Choice
Whether you are new to investing or are a seasoned investor, more knowledge and professional advice help you make smart choices. For stock market investing and consulting, we work directly with Choice Investments. We work with them to offer you a comfortable and solid investing experience through a caring culture, just like our own. You can check the background of these financial professionals through FINRA’s BrokerCheck.
We will work with you to customize a plan that meets your needs and goals. No amount is too small and it’s never too early or too late to start. It’s free to meet with us and learn your options.
Understanding Common Terms
What is the “market”?
It’s all of the companies and products which are publically traded. Their values, or stocks, are divided into smaller units called shares. If you go shopping this week, chances are you’re buying items made from companies that have value in the stock markets, which track the values of those companies’ shares. When you buy stock, you are investing in a company. When their value goes up or down, the value of your shares, or investment, do as well.
Risk tolerance is your comfort level, your willingness to leave your funds invested, despite market fluctuations (the value going up and down).
You can purchase individual stocks, which are invested in one company, and therefore higher risk. If the company is performing well, the value of its shares goes up, and you stand to earn more. If it is not performing well, you stand to lose more.
Each of these funds is comprised of investments in multiple companies. If one or a few companies in a fund are not doing as well, those stocks can be sold, and other stocks that are performing better in the group can be purchased. This can help to better balance your funds/earnings. Generally the high and low fluctuations are smaller than for individual stocks.
Earnings from these funds are tax-free, whether you withdraw or reinvest them.
There are many types of funds that only include companies in targeted categories. For example:
A fund that includes only socially responsible companies.
A fund that includes only companies whose products are made in the USA.
A fund that includes only energy companies.
You can choose where you want to invest, and what companies you want to support.
Investing Your Savings
Investing always starts with saving. Since there are inherent risks in stock market investing, greater gains and losses are possible, so we encourage beginning investors to set aside enough for their immediate and emergency needs before putting money into the stock market.
When we meet with you, we’ll start with a thorough conversation about your financial standing, well-being, and current needs. We’ll look at your needs for the future, as well as your risk tolerance, and create a unique plan just for you. Part of that plan is working with you to decide how much you can invest, initially and each month. You can increase, decrease, or stop the amount you invest at any time without penalty, and we can show you projections of how those changes could affect your future funds.
When investing, think diversification over the longer term. Give yourself a minimum of 3-5 years to see how your investments work out. This is a recommended minimum for beginning investors. Since funds do fluctuate over the short term, longer is better.
If you’re close to retiring and looking for advice on what to do with your investments, we’ll sit with you and discuss smart strategies to help you continue to generate income during your retirement. We’ll also help you through the process and paperwork as it can be very detailed.
Investing is an important part of your financial picture, and there’s much to learn. We're here to help you Live and Invest Smarter. Start by making an appointment.
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