Wednesday, April 26, 2023 |
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Open your first brokerage account in 4 easy steps |
The best time to start investing is as soon as you can. The second-best time to start is now. That's because an investor's greatest asset is time. Getting your money into the market earlier gives compound interest more time to work its power. One common reason investors delay getting started: Opening an account at an online brokerage can seem complicated and intimidating. If that's how you're feeling, follow Make It's step-by-step guide to opening your first investing account. Step 1: Pick a brokerage. Thanks to a decades-long price war, virtually every major online brokerage now offers commission-free stock and exchange-traded fund trading, on intuitive trading platforms. Basically, if you know the name of the company (Fidelity, Vanguard, Schwab, E-Trade, etc.) it's hard to go wrong. Step 2: Choose an account type. Think about your intentions for the money you're putting away. If you're investing for a short-term goal, such as a down payment on a home, a taxable brokerage account will give you the most flexibility. If you're saving for long-term goals, investigate individual retirement accounts, which reward users with tax advantages. Step 3: Sign up and fund your account. Once you decide on an account, you'll have to fill out an application and provide some identifying documents and personal information. You'll also have to fund your account by linking a bank account, ordering a wire transfer, cutting a check, or transferring funds from a different type of investing account. Some brokerages may charge for certain types of transfers, so read the fine print before moving any money. Step 4: Select and purchase your investments. Once your money is deposited, it will be held in a so-called sweep account — a default low-interest cash vehicle. You can use that money to purchase any type of investment your brokerage offers. If this is your first time investing, it's smart to focus on broadly diversified, low-cost investments. If you choose a mutual fund, select from the brokerage list of "NTF" funds, which can be purchased with no transaction fee or sales charge. |
Money Tip of the Week: Trick yourself into saving Saving money is easier said than done – especially when buying something you want is as easy as clicking your mouse or tapping your phone. That's why financial planners recommend a series of "tricks" to help you cut back on unnecessary purchases and rewire your thinking around money. Here are three strategies to consider. Automate your savings. Set up a transfer via your bank website that automatically directs a portion of each paycheck into a separate savings or retirement account. By putting your savings out of sight and out of mind, you're free to spend the remaining money guilt-free. Think of purchases in hours worked. Say you make $30 an hour and want a $150 sweater. That's five hours. Would you be willing to work an extra shift in exchange for that cashmere? Thinking this way can help you determine if the things you want are worth the cost. Wait 24 hours before making big purchases. Give yourself a mandatory pause for purchases over a certain amount. After a good night's sleep, those items in your Amazon cart may not feel as essential to your well-being as you thought. |
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Next Gen Investing: How to avoid crypto scams like Taylor Swift did |
A slew of celebrities and star athletes, including Shaquille O'Neal, Larry David and Tom Brady, who were paid to endorse now-bankrupt crypto exchange FTX were recently named as defendants in a class-action lawsuit. One name you won't find on the list: Taylor Swift. In 2021, FTX offered the pop superstar a $100 million sponsorship deal that would have involved selling concert tickets as non-fungible tokens to her fans, according to the Financial Times. Swift sniffed out a potential red flag, asking whether the firm was promoting securities that were unregistered with the Securities and Exchange Commission, Adam Moskowitz, one of the attorneys leading a class-action lawsuit against FTX's celebrity endorsers, said during an episode of "The Scoop" podcast. Chances are, you're not going to get approached for a multimillion-dollar crypto endorsement deal anytime soon. But the SEC does recommend that you watch out for signs that a crypto investment might be a scam. Claims of high returns with little or no risk. Typically, the higher the potential return, the more risk an investor must take on to achieve it. Any claims to the contrary are classic signs of fraud. Unregistered investors. Always check that the person trying to sell you an investment is properly registered and licensed to do so, even if you know them, the SEC says. You can check an investment professional's background, qualifications and registration through the Investment Adviser Public Disclosure website and the Financial Industry Regulatory Authority's BrokerCheck website. Problems with sales documents. If a salesperson won't provide any information about a potential investment in writing, you'd be wise to avoid it. A legitimate private offering will typically be described in a private placement memorandum, the SEC says. Check any literature you receive for spelling errors or other mistakes, which may indicate that the investment is a scam. |
Sign up to attend our Small Business Playbook virtual event |
Join CNBC's Small Business Playbook virtually on May 4, where entrepreneurs will share advice and tips on how to handle economic uncertainty, inflation and more so your business can succeed for the short-term and the long-term. Register for free today. |
Worth the Money: Courant Catch:3 phone charger — $100 |
Phone chargers can't be sexy. Or at least that's what I used to think. Ever since I got my first cellphone in 2007, I've been charging my devices with a cable that plugged right into the charging port. It's not elegant, it's not beautiful, but it gets the job done. Recently, however, I've been using the Catch:3 from luxury charging brand Courant, and I might never go back. The sleek charging mat doubles as a tray on my nightstand, holding my glasses and watch while my phone charges. At $100 (or $175 if you opt for the leather-bound version at staycourant.com) it's definitely not cheap, but it's an elegant and stylish upgrade for something I use each and every day. —Nicolas Vega, Pop Culture Reporter |
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