No, now we do the research and invest. Nobody is going to do it for us so we decided to learn all we could and jump right in.

I wish someone had told me more about it in my teens and early 20's when I was working and just saving in a regular low interest savings account...

This is a great example of why you need to be certain you are diversified. If one area of your fund takes a large hit you should be able to still do ok. You can be diversified in one mutual fund, or in several funds.

Yes! I can read all about it but that first step -- just can't seem to do it.

I like other people would invest more if we had more.

Still I know what Compound interest does and on top of that if your company has any investment incentives it is too good not to do.

For example we
We only contribute 6% ($2600) but you tack on 50% 401K Matching of to 6% and 401K Safe Harbor and extra 401K profit share. For us thats adds $7000 this year to our 401K This is money that is my DHs Company paid benifits it is in addition to his base salery.

I just feel that the market would have to be really really pourly for us to loose out.

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Well yes and no. When I was single, I did have 401K's, and I did invest in retirement system which did entail me selecting stocks where to put it. However, I always picked the lowest risk (and yield). Now that dh and I have been married, he is much more knowledgeable in that arena than I am. Consequently we still have lower risk (but higher than the ones I picked) investments that are consistent in their growth. I'm very hesitant about investing because I got 'burned' once when I was very young. My parents took money *I* earned and made me invest it in their choice of mutual funds. The fund did miserably and wiped out my savings, I was only 16 and it was very hard earned money from working summers! From that day on I am definitely a low risk taker in that area.

Lack of knowledge SHOULD keep you from investing. However, lack of knowledge shouldn't stop someone from ACQUIRING the knowledge so they can invest wisely. As others have pointed out, they read up and learned about the investment then they jumped in.

And yes, there are some investment vechiles that I stay away from (margin trading, for instance) because I understand just enough about it to say "that's not for me".

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As a former stockbroker, I am concerned by the number of responses from people who aren't investing because they are afraid of the risk. One big risk that is often overlooked is the risk your money won't keep up with inflation. I fully agree with Suze Orman's philosophy of establishing an emergency fund that is liquid and accessible (savings accounts and some CD's are fine). However, after that, you definitely SHOULD be investing somewhere.

There are many websites out there (Charles Schwab: Investment and Financial Management Services is excellent, but by no means the only) that will educate you on everything you need to know. When I worked at Schwab as a broker, I was quite surprised to learn that if you build a portfolio properly, you can actually DECREASE your risk as you INCREASE your return. Although this seems to go against the logic that a high return implies a high risk, it capitalizes on the fact that investments are generally cyclical and many do not move in tandem.

A simple example is a portfolio with 2 mutual funds: one that tracks a broad stock index (which is diversity among stocks) and one that tracks a bond index. Historically, stocks and bonds do not move in tandem, so when stocks are lagging, the bond fund can boost your overall return. All of the good websites should have information about determining the level of risk you are comfortable with, then building a portfolio. Most mutual funds can be purchased with a smallish initial deposit if you set up to make regular, automatic deposits (which decreases your risk by dollar-cost averaging).

If anyone has further questions, keep posting them! I'm sure one of us will have a good explanation! Happy investing!

I guess for me it's just my personality - I don't like risking/gambling money. I don't play the lotto, I don't play raffles (unless I consider it a "donation" to a group I support), I don't loan money to others, I have no interest in "potentials" for money - I want guarantees. If I am "guaranteed" for sure a certain gain, then ok, I'll think about putting money in...not a chance of gain, not even an excellent chance of gain - I want to know how much I will have in X amount of time.

Of course, I do wish I would have put money in on the oil market or Google, but I also wish I would have bought the winning lotto ticket. I know to investors, the lotto and the stock market are no where near the same, but until one can absolutely guarantee a rate of return, without exception, I will not use the market as a way of building or storing wealth. I know of many, and I think everyone knows someone who has played the market and gotten burned....and not all those people were playing it "wrong" or what not.

That all said, I do like matched 401k - because to my little mind, the "risk" is outweighed by the "free" money from the employer. If I put in $500 and the employer puts in $500, total of $1000, and I have a loss of 5% that quarter, I've still "gained" $450 on top of mine. That's good return for me If it's just me, then that $50 loss isn't a whole lot I guess, but I'm not into paying $50 for a gamble. I don't like up and down.

Finally, I don't think the market is bad at ALL! It's just not at all for me - for the rest of the folks out there, I know it's an important tool for our economy, but it's just not for me. Heck, 50 years ago, I'd be the person burying mason jars in the backyard with cash in them!

I invest in my 401K. I understand the concept of the stock market. I guess my lack of knowledge is how to begin so I still haven't invested.