Do your research. Before jumping into the world of investing, know that you don’t have to shoulder the burden of learning and making investment decisions alone.  Your personal finance guide can help you understanding the basics of products are out there, how they work, and how to start. As you become more advanced in your investment prowess, you can consult free online resources that can help you better understand the technical aspects of the mythical world of stocks, bonds, and mutual funds. 

Invest on Your Own vs. Invest with a Professional. When it comes to investing, you can make all the decisions on your own or turn to experts for advice and guidance.  When investing on your own, you will more than likely be using an online discount broker. Examples of these sites include: Ameritrade, Scottrade and E-Trade.  We break down these sites further in the brokerage account section.  This option is an online tool for you to buy stocks, bonds, and mutual funds via the web.  They are generally the cheapest option when it comes to investing your money because you are doing most of the work on your own.  You are responsible for doing the research on the individual stock, bond, or mutual fund and then placing the order through the website.   

The other alternative is to turn to a financial professional for help.  In these instances you are looking for a full service broker. You will be meeting with someone face to face or over phone, and asking them to make investment decisions on your behalf.  Keep in mind that this is more expensive than the discount broker option, but hey, you are paying for advice and for someone to hold your hand on how to invest.  Also note that full service brokers don’t just take anyone as a client.  They typically work with individuals that have money to invest, typically $10,000 or more.  Examples of these full service brokers include: Fidelity, Edwards Jones, Raymond James, UBS and Morgan Stanley.