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Does anyone invest in stocks/mutual funds?

I just started by investing a small amount of money each month into 3 stocks but my stomach is in knots because I still feel like I don't know what exactly I'm doing. And the lingo is going to take some getting used to. Do you invest? Anything crucial to know?

Answer Question

Asked by Anonymous at 4:54 PM on Jan. 13, 2011 in Money & Work

Answers (10)
  • We invest in mutual funds. We feel stocks are too risky. A great show to listen to is The Money Show on WTKK radio online Sunday mornings 9-12 EST. Susan Kaplan is on that show and she is one of the top 100 financial advisors in the US. She is on almost every week and has helped us greatly for over more than 10 years. Message me if I can give you any more info about it. GL!!

    Answer by elizabr at 4:58 PM on Jan. 13, 2011

  • I have both. Stock is complicated but I get it. You just have to realize that your are only investing "play money" Never invest what you cant afford to lose

    Answer by Steph319 at 4:59 PM on Jan. 13, 2011


    copy and paste this link for more info on mutual funds!

    Answer by Steph319 at 5:00 PM on Jan. 13, 2011

  • Ok so there's a difference between stocks and mutual funds.... this is a start lol I feel silly

    Comment by Anonymous (original poster) at 5:00 PM on Jan. 13, 2011

  • A mutual fund has stocks of several companies. Holding stock of a single company is riskier than having a mutual fund.

    Answer by elizabr at 5:07 PM on Jan. 13, 2011

  • We invest in mutual funds and we use a financial advisor at Edward Jones. But the above poster is right, holding stock in a single company is risky, with mutual funds there are like a hundred companies in there so the risk is spread out.

    Answer by slw123 at 5:15 PM on Jan. 13, 2011

  • We also have a little bit of money invested in a mutual fund.

    A single stock is small ownership in a single company. And that is risky. It's basically like putting all your eggs in one basic. They might sell for say $15 a share.

    A mutual fund is basically hundreds (maybe thousands) of stocks put together. That way if one company goes bankrupt, it's not that big of deal, because the other companies you invested in aren't. You'd choose a mutual fund to spread the risk aka diversify.

    Mutual funds are mutually funded. So there could be thousands of people that put their money into the fund. Most investors don't have millions of dollars so they can't afford to buy hundreds and thousands of single stocks. But when you combine your money you can.

    Think of it like a pot luck. You can't afford to make all those great meals, but if you get together you can all share a little bit without 'buying' all of it.


    Answer by Erica_Smerica at 7:03 PM on Jan. 13, 2011

  • *Great dishes* sorry not meals.

    Anyway I would recommend a financial adviser. Look for someone that actually teaches you- not one that just tells you what to do. Investing is important, but it's more important that you know what you're doing that that you feel comfortable in where your money is invested.

    Answer by Erica_Smerica at 7:04 PM on Jan. 13, 2011

  • If you hire a financial advisor get one that is fee only. Many will only advise you to buy funds that will give them a huge commission. Ask them if they are taking a fiduciary responsibilty for your account. Which means they have to act in your best interest and recommend funds with reasonable expenses. You should also do your own research and find out what the expenses are with any recommendations.

    Answer by elizabr at 7:32 PM on Jan. 13, 2011

  • You need to educate your self! Go to the library every day and read the Wall Street Journal. Read the business sections of major newspapers online (New York Times, Chicago Tribune, etc.)

    Answer by rkoloms at 8:30 PM on Jan. 13, 2011

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