A retired financial planner, James Leitz has a MBA (finance) and 35 years of investing experience. For 20 years he advised individual investors, working directly with them helping them to reach their financial goals. Jim is the author of a complete investor guide, Invest Informed, designed for average investors or would-be investors of all levels of financial background and experience. To learn more about investments and investing and his new financial guide go to http://www.investinformed.com.
This article will address how to invest from a practical standpoint. How do you actually invest in stocks the best way, and at the least cost? First we discuss how to invest in stocks, and then move on to stock mutual funds.
In this article I name discount brokers and no-load fund companies (families) that I personally consider to be among the best in their field. They are also among the largest and most reputable, and offer some of the lowest commissions, charges and fees in the business.
If you want to invest in stocks, including ETF's, open a brokerage account with a major discount broker. If you go to google and search "best discount brokers", names like TD Ameritrade, E-trade, and Scottrade will appear. Stock trades can cost as little as $9.99 or $7, whether you buy or sell.
Investing through these brokerage firms on your computer is simple, and trades are executed accurately and promptly. I've placed hundreds of orders through one of the above, with no significant problems. To open an account simply go to their web site. If you need help, call the toll-free number. Tell them you need some help and want to open a brokerage account.
You can also invest in stock funds through your discount broker. In my opinion, the best way to invest in mutual funds is to open an account with a no-load fund family. This way you avoid tranaction fees, plus you have a wide range of services available to you.
If you Google "best no-load funds", names like Fidelity, Vanguard, and T. Rowe Price will appear. These three fund companies offer a wide selection of no-load mutual funds, with costs that are moderate to low. For example, all of the Vanguard funds are no-load (no sales charges), and this fund family charges less for yearly expenses than any other I know of.
Visit the above web sites. If you are not sure how to invest, call the toll-free number for help. Tell them you want to invest in stock funds, and they will help you open an account. You want to open a mutual fund account, not a brokerage account.
Remember, the service representatives are there to help you and do not work for commissions. They are usually very friendly and helpful, and are used to talking to everyday people who don't know the Wall Street language.
Now, here's how to invest in stock funds with one of the best companies in the business, at the lowest possible cost. Invest in Vanguard stock index funds. Total yearly expenses can be lower than two-tenths of 1%.
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