During a recession is not when the average person thinks about investing in any money making venture.
Most run from the stock market tails between there legs.
Bonds and other investment instruments don't do much better.
Starting a business is hardly given a glance.
Joe and Jane average hold onto the small nest egg and tremble with fear, "how much worse can it get" permeates their thoughts.
Watching the news only amplifies this posture.
If they do invest in anything it appears the lottery ticket is a good bet.
It's convenient in most states you can buy one with your morning coffee, It's cheap a few bucks will get you a chance at the mega million multi-state lotto's and the few scratch off tickets are fun.
But lottery tickets are a bad investment, other than winning there is no future return.
The odds are so heavily stacked against you that occasionally you will win than $10.
00 or $20.
00.
Enough to offset the cost of buying tickets.
One economist labeled the state run lotteries as a poor person's tax.
But many people continue to throw an extra $5.
00 on the counter every morning with their coffee and gas purchase.
Enough said about the lottery! But what if you could buy an actual investment for a few dollars a day? A legal investment instrument put in place by the federal government, would you do it? It lacks the fun of scratching off wax to see if you get three of a kind.
And you won't have a gaggle of reporters at your house if you are lucky enough to be that 1 person in 50 million to hit the mega millions.
Good luck on those odds.
One reason people don't invest is they do not know how.
There is an air of mystery around investments other that buying treasury bonds and opening a savings account.
That mystery is kept in place by the investment community for several reasons.
The most likely on is that if you decide to become an investor they want you to use an inside stock broker.
That way the commissions and fees stay inside the investment community.
Another reason people do not use stocks and other investment ventures is because the minimum to play the game is too expensive.
Some brokerage accounts require thousands of dollars just to open the door.
The average middle class wannabe investor lacks the funds to start.
Finally besides the mystery and cost is the confusion.
Confusion from deciding what type of investment, stocks, bonds, T-bills and the list grows from there.
Also trying to learn has a way of only adding to the mystery and confusion.
Plus trying to decipher the documents and cryptic shorthand can push even the most astute college educated potential investor over the edge.
Recently a lot of brokerage companies and banks have developed programs to help potential newbie investors get started.
While this has merits it also has downsides.
These include all of the above while minimizing the confusion and cost they still hold the power and charge (sometimes) outrageous fees.
Although the recession has frightened many investors away it is not the end of the world for the stock market.
Now might be a good time to invest.
Think seriously about this stock prices are down lower than they have been in years.
And do you really think Microsoft, Panasonic, Sony and other fortune 500 companies are going to go away? Of course not: they will recover and be stronger and better due to this turn around.
But remember there is a lot to learn and consider before you do go into investing in stocks, bond and other investment instruments.
So what's a little fish in the big pool do? I guess you think you are stuck with savings accounts and maybe an IRA or a 401k from your employer (if you are lucky).
Well with a little tenacity and an organized approach you can take that lottery ticket money and turn it into a safe growing investment.
These legal and little known programs require very little maintenance once they are properly set up.
These plans are wide ranging and many stock brokers will try to steer you away from them.
Not because they are risky, actually they are probably safer than stocks.
The brokerage commissions aren't there so your broker won't make as much money.
However, as I said before, a little tenacity and some intelligent approaches will allow you to create your own investment strategy and set up commission free accounts.
It may seem confusing, but its not.
And after you start down the path, put the time to learn and set it up you will quickly get up to speed and be on your way.
Most run from the stock market tails between there legs.
Bonds and other investment instruments don't do much better.
Starting a business is hardly given a glance.
Joe and Jane average hold onto the small nest egg and tremble with fear, "how much worse can it get" permeates their thoughts.
Watching the news only amplifies this posture.
If they do invest in anything it appears the lottery ticket is a good bet.
It's convenient in most states you can buy one with your morning coffee, It's cheap a few bucks will get you a chance at the mega million multi-state lotto's and the few scratch off tickets are fun.
But lottery tickets are a bad investment, other than winning there is no future return.
The odds are so heavily stacked against you that occasionally you will win than $10.
00 or $20.
00.
Enough to offset the cost of buying tickets.
One economist labeled the state run lotteries as a poor person's tax.
But many people continue to throw an extra $5.
00 on the counter every morning with their coffee and gas purchase.
Enough said about the lottery! But what if you could buy an actual investment for a few dollars a day? A legal investment instrument put in place by the federal government, would you do it? It lacks the fun of scratching off wax to see if you get three of a kind.
And you won't have a gaggle of reporters at your house if you are lucky enough to be that 1 person in 50 million to hit the mega millions.
Good luck on those odds.
One reason people don't invest is they do not know how.
There is an air of mystery around investments other that buying treasury bonds and opening a savings account.
That mystery is kept in place by the investment community for several reasons.
The most likely on is that if you decide to become an investor they want you to use an inside stock broker.
That way the commissions and fees stay inside the investment community.
Another reason people do not use stocks and other investment ventures is because the minimum to play the game is too expensive.
Some brokerage accounts require thousands of dollars just to open the door.
The average middle class wannabe investor lacks the funds to start.
Finally besides the mystery and cost is the confusion.
Confusion from deciding what type of investment, stocks, bonds, T-bills and the list grows from there.
Also trying to learn has a way of only adding to the mystery and confusion.
Plus trying to decipher the documents and cryptic shorthand can push even the most astute college educated potential investor over the edge.
Recently a lot of brokerage companies and banks have developed programs to help potential newbie investors get started.
While this has merits it also has downsides.
These include all of the above while minimizing the confusion and cost they still hold the power and charge (sometimes) outrageous fees.
Although the recession has frightened many investors away it is not the end of the world for the stock market.
Now might be a good time to invest.
Think seriously about this stock prices are down lower than they have been in years.
And do you really think Microsoft, Panasonic, Sony and other fortune 500 companies are going to go away? Of course not: they will recover and be stronger and better due to this turn around.
But remember there is a lot to learn and consider before you do go into investing in stocks, bond and other investment instruments.
So what's a little fish in the big pool do? I guess you think you are stuck with savings accounts and maybe an IRA or a 401k from your employer (if you are lucky).
Well with a little tenacity and an organized approach you can take that lottery ticket money and turn it into a safe growing investment.
These legal and little known programs require very little maintenance once they are properly set up.
These plans are wide ranging and many stock brokers will try to steer you away from them.
Not because they are risky, actually they are probably safer than stocks.
The brokerage commissions aren't there so your broker won't make as much money.
However, as I said before, a little tenacity and some intelligent approaches will allow you to create your own investment strategy and set up commission free accounts.
It may seem confusing, but its not.
And after you start down the path, put the time to learn and set it up you will quickly get up to speed and be on your way.
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