Sep
24
Blog I read
Filed Under Uncategorized
I read a blog at http://www.tobinvanostern.com/tblog/2008/06/27/how-to-start-investing-young/. It is very informative on the topic that I am discussing. This blog breaks the investing formulas better and shows how you can start with $100 a month and after X amount of years this can turn out to be a huge sum. The writer also explains how and where to open your retirement accounts. He explains the minimums that some firms require to open an account. For example he shows us how it’s better to go through Etrade since they have no commission charges on their mutual funds. Commission charges can take a toll on our retirement accounts over time. Imagine every single time you buy a share of your fund your paying fees. That’s why you have to go with a no load fund. He also does a good job of giving some advice when to buy and when to sell. The universal rule to this is buy low and sell high. Warren Buffet which is the greatest investor to ever lived is the master of this principle. One thing that I use which he added on his blog is to use Morning Stars which is a mutual fund rating system. This is extremely important due to the fact their are thousands of funds. You don’t want to get yourself into a mutual fund that has a bad track record. Morning Stars rates the funds with a star system. Five stars being the highest and one being the lowest. Well this blog I read helped a lot. I’ll be adding more on this topic on my next blog.
Approximate Word Count (very rough estimate): 259
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The basic principle is buy low sell high, i got that. with the market in such unchartered grounds, and the market at a very low, is now the time to buy? But on the real note, good research on the topic, and thanks for that link