Last week a friend asked me if Cora and I really did "all that research" before we made an investment decision. She was referring to in-depth economic history as a foundation for financial planning. The question startled me, because Cora and I have been researching the markets and economies for almost three years now, and the matter of whether we wait this long to invest seemed absurd at first. However, I realized how complicated our little meanderings seem - especially to new investors. So, this article is a response to my friend's question, but the rest of you can listen in.

When Cora and I began investing, we just jumped in. Although I wouldn't recommend jumping in with every last penny you find around the house, there's merit to not knowing too much before investing for the first time for one reason: If you tried to learn everything about the stock market before you ever invest, then you never will invest. This would be the best excuse in the world for procrastination.

Cora and I began by choosing a few companies we knew about and whose products or services we used in our daily lives, and these companies became our first investments. We didn't know how to read a chart, we didn't know anything about technical analysis (that term sounds daunting even after all our studies), and we weren't sure whether we'd lose all our money or become millionaires. We did, however, know which broker we wanted to use, because BUYandHOLD offered services that seemed to fit our needs. For example:

1. I am not a consistent person. BUYandHOLD is perfect for me, as their monthly payment plans allow me to build this valued character trait called "reliability." If I don't make that monthly payment, not only do I have to physically account for a loss in my portfolio, I also have to emotionally account for my negligence to my daughter.
   
   
2. I can take advantage of the IRA tax shelter at BUYandHOLD. A little research might be necessary on the front end, but the only effort I applied was to contact other brokers to find out how much they charged before I was convinced the BUYandHOLD option was the best for me.
   
   
3. I could open an account for Cora at BUYandHOLD. Believe me, this wasn't an altruistic decision. I did this so I would stay on top of my own investments. For some reason, when my daughter joined me on this quest to discover the world of finance, my own investment habits improved dramatically.

Your own family dynamics may vary drastically from mine, but if you have children, think about them for a moment. They may receive an education, but you and I know this education is not specialized until they head off to college. Although this makes for a diverse foundation, it isn't as diverse as we hope it will be. Physical education is minimal unless we provide opportunities for them to participate in events outside of school. Art and music education are also minimal. We need to provide them with opportunities to learn the value of aesthetics. We can even provide them with the tools to learn to how create their own art.

Their financial education is just as important as their basic, aesthetic, or physical education. In fact, it might even be more important. If your child becomes a basketball star or a famous pianist, what will they do with all that money? They could hire someone to handle the income, but we don't want them to become the victims of foul play. How can we avoid this mistake?

They can learn if we help them learn. There's no education like hands-on, in my opinion. If you open an account at BUYandHOLD, it could be one of the least intimidating and most rewarding experiences you'll ever offer your child, and they will learn more about finances with this effort than with anything else you might offer them.

So, my friend, I'll recap this for you briefly in five short steps:

I know these steps may sound backwards, but think about that basketball star and that famous pianist. They didn't begin their successful stories by knowing all the rules or by understanding how the insides of the piano work. All they did was make that first shot and play that first note.

Go for it.

Until Next Week,
Linda Goin