1. Make sure you have job security before you begin investing.
   Start investing with a small amount that you can afford and contribute to your investment regularly.
2. Never start investing until all your bills are paid and you are debt free.

You can start investing with a small amount of money that you can spare and build up your assets over time. A little money invested now can result in huge rewards 20 or 30 years down the road.

1. an interest in making money in addition to your salary
   an appointment with a Certified Financial Planner
2. a clear statement of financial goals

Before you start investing, you need to have a clear understanding of what your life goals are. Once you establish goals, your goals will help you to define your investment strategy.

1. educate yourself about investing
   subscribe to a some investment journals
2. hire a broker that can also offer you financial planning services

Once you have decided that it is a good idea to invest, you will need to educate yourself about investing. Find out all you are able about stocks, bonds, mutual funds and other investment strategies.

1. as much as 15 percent of your monthly salary
   as much as 20 percent of your monthly salary
2. as much as 25 percent of your monthly salary

If you would like to retire at the age of 50 and live on your investments, you may have to invest as much as 20 percent of your salary. If you plan to wait for social security to help pay the bills you can likely get away with investing less money.

1. a firm financial foundation
   a separate bank account solely for investment purposes
2. a 401K as a tax shelter for your money

Establish a firm financial foundation before you start putting money at risk. According to Kiplinger, many financial experts recommend medical insurance and at least six months of income in a low-risk bank account prior to investing.

1. dividends that they can reinvest
   thrill of earning income from owning part of a company
2. financial security of profiting from investments

Most investors purchase stocks as long-term or short-term investments. Dividends are nice and if reinvested can increase your stock assets, but buying low and selling high is where the money is.

1. Invest in companies that you feel will increase in value significantly within a few months.
   Invest in companies that you feel sure are going to grow.
2. Invest in companies that are new on the market and have displayed good short-term growth.

You should do your market research and invest in companies that you feel confident are going to grow. A company that has steady growth over a long-term is an excellent investment.

1. between 6 and 10 percent
   between 10 and 12 percent
2. between 12 and 17 percent

History has shown that the stock market has grown on average 10 to 12 percent per annum. Remember, this in average performance over the years and not an average for every single year, which reinforces the concept of a long-term investment strategy.

1. are assessed yearly management fees
   have maturity dates at least five years after issue
2. offer lower returns on investment

Along with lower risk comes lower return on investment potential. The only exception is junk bonds that offer a higher return on investment, but they have a low credit rating and are more likely to default.

1. instant investment diversity
   low initial cost to join
2. management by a co-operative

Joining a mutual fund will give an investor instant diversity in their investment portfolio. Mutual funds by design insure that your money is invested in a balanced portfolio managed by a professional and there are no broker fees for each purchase made by the fund manager.

1. A REIT is a company that only manages rental properties.
   A REIT is a company that owns and manages a portfolio of real estate properties and mortgages.
2. A REIT is a company that manages retirement plans for individuals and other companies.

A real estate investment trust (REIT) is a company that owns and manages a portfolio of real estate properties and mortgages. When you invest in an REIT you are entitled to a share of the profits the company generates.

1. to register your trading account with a stock exchange
   to have a good credit score and a trading account
2. to choose a broker or a brokerage firm

Only licensed brokers are permitted to trade stocks, bonds and mutual funds. You will need to find a broker and set up a brokerage account that they will use to finance your trades.

1. You will need to prepare a balance sheet listing your assets and liabilities before selecting a broker.
   You will need to know what the minimum deposit requirement is for the brokerage account.
2. You will have to bring your last completed tax return with you to show the prospective broker.

Most brokers require that you have a minimum deposit for your brokerage account and they will not work for you without the deposit. According to Investopedia, minimum deposits can average anywhere from $500 to $2,500, but can go as high as $10,000.

1. Brokers charge a commission on each trade they make on your behalf.
   Brokers charge between one and five percent of the total value of each trade.
2. the company of record on the shares traded will compensate brokers

Brokers are paid a commission from your account for every trade they perform on your behalf. Most brokers also charge other fees, so it is best to clarify what amount of commissions and fees you will be charged.

1. Churning is simply another term to describe the practice of day trading.
   Churning is the practice of encouraging multiple unnecessary trades.
2. Churning is the practice of investing in the Forex market.

According to Investopedia, churning is an unethical practice that people sometimes accuse full-service brokers of employing to increase their commissions. Remember that not all full-service brokers are worth their huge commissions, because they tend to be salespeople that peddle their firm’s investments and that is not always in your best interest.

1. Stocks have less long-term risk and a better return on investment over time.
   A younger investor has a lot of time to trade up to better performers.
2. Young investors tend to worry less when a stock they own suffers significant loss.

Stocks have less long-term risk and a better return on investment over a period of several years. Stocks have a history of averaging an increase of about twelve percent in value.

1. “Get in cheap and get out quickly with a profit.”
   “Don’t roll the dice, take good advice.”
2. “Invest aggressively for the long-term and conservatively for the short term.”

According to Kiplinger.com, you should “Invest aggressively for the long-term and conservatively for the short term.” If you plan to save money to use next year put it in something relatively safe and if you are saving with a view to the long-term you can be more aggressive.

1. invest only in mutual funds
   use dollar-cost averaging
2. hire a Certified Financial Planner

Dollar-cost averaging (DCA) is a strategy where you decide a fixed monthly amount to invest in the same investment instrument. For example, with your allotment you buy stocks in the same company every month regardless of their performance, in the long term you pay a lower average price per share then if you were randomly buying and selling.

1. You must stick with your investment strategy.
   You can beat the odds by sticking with only mutual funds.
2. Try to become proficient at estimating the future performance of your stocks.

Do not be trapped by get-rich-quick schemes and investment scams. If it sounds too good to be true, it most likely is. Once you have developed a reasonable investment strategy based on your knowledge and professional advice when necessary, you should stick with your strategy to achieve the best return on investment.

1. Always reserve a small portion of your liquid assets for short-term investment in the next hot sector.
   A change of course is not bad if it is obvious that a part of your plan is not working.
2. Have a Certified Financial Planner review your plan with you every three years.

If a part of your plan is not working, it makes good sense to change courses in that area of your investment plan. If, for example, you invested in a stock and it has lost value consistently for several years, it is probably time to cut your losses and find a different place to put your money.