Early in November I mentioned that I have a goal of learning how to invest. I went out and borrowed 3 books from the library on my quest to an investment education.
My First Roth IRA
I have opened my very first Roth IRA account! Let me tell you how much I do not know about Roth IRA’s.
Well, that’s not true. I know a little. I know that my husband has something like it through his company and that you are supposed to pick the mutual funds that you want your money to work in. Because I work at home as the CEO of my household, I don’t get a fancy-schmancy retirement option in which to place a certain amount of income. [You’d THINK that I would at least get a good retirement package seeing that I’m a CEO and all!]
Nope…I had to go to my bank (USAA) and open one myself. After I deposited an initial amount of cash, I looked at it blankly.
In my ignorance, I didn’t realize that I actually had to research ALL the mutual funds and then PICK one. Sheesh! And there isn’t just a few to choose from…oh no…there are like a gazillion!!
Fortunately, the Investing For Dummies book is less of a sleep-inducing read than the other books.
What I Have Learned So Far
There are a few things I learned from the book and opening my Roth IRA.
Stock/Fund Screening Programs
The author of Investing For Dummies mentions that there are programs out in cyber-world that help you figure out what type of mutual fund and stock to pick. He mentions that Morningstar.com is his go-to site.
Honestly, when I first looked at it I was really exhausted and nothing made sense. I actually didn’t look at it again until I opened up my IRA because USAA has a connection with the site and I was able to access it through them! [Woo Hoo!]
It still was confusing to try and figure out, but after HOURS of looking through the site, it started to make a little sense.
For the Mutual Fund I want to invest in, there is a minimum investment of $3000! *GASP* I had only opened the account with a measly $100 so I am far…far…away from that total. However, if I want to purchase stock, there is no minimum investment.
Since I am looking towards a more aggressive approach to my portfolio, I spent a looooong time researching different stocks. Yes, I am a risk taker…did you note I only put in $100? After looking at different types of stocks [which I will go into at another time], I finally found a favorite. I was able to buy….
wait for it…
2 stocks! [$100 does not go far in the stock world.]
I still have a lot more to learn about this whole investing thing. Two stocks is not a whole lot after three weeks of learning, but it’s two stocks more than where I started!
There are some affiliate links in this post in an effort to raise my CEO income! 😉