Starting over – investing for beginners, Part 1

There are many kinds of starting over. HT & Thx to Nike.

Having spoken to several women recently about investing, we think it is time to start over and repeat the reason for this blog: to give single investors the intellectual tools they need to invest on their own to build a larger and more secure financial nest egg.

Sometimes IFO forgets how scary money can be. We’ve had years to get used to our own current investing habits, others… not so much. As a youngster, IFO’s only thought was to get money she received from baby-sitting and generous uncles into a safe place.

Her Dad suggested a savings account at a bank. That sounded good and worked well until she was in her early 30s! Her money-saving habits were intuitive and more stringent than anyone else’s that she knew of. She saved at least half of everything she made. By the time she got married in 1961, she had accumulated a nice wardrobe, a steamer trunk that she has to this day, a fifth semester in college, a resume and $1,000 in a savings account.

Then,  IFO stopped working for 15 years. After she and her family had moved to Oregon, she went back to work and needed a checking account. She wanted to use her birth name on the account. One bank simply couldn’t handle that. This was pre-feminism, don’t you know.

However, thanks to the wonders of competition, she found that to the bank across the street had no problem whatsoever opening a checking account for her in her birth name. Next, she got a credit card.

DDH was shocked at her lack of any other financial knowledge and urged her to open a brokerage account and a Treasury Direct account. He had to hold her hand. From there, however, it was easy-peasy.  She earned her own money with her day job and invested it bit by bit in companies she found through her research.

Research in those days included PBS television – Louis Rukeyser’s show. She bought a few shares in a couple of companies. And waited and watched. She didn’t have the fear that her current women friends have.

“The stock could go to Zero!” “You could lose money!” “It’s not safe!”

While DDH never advised specific companies, he did share his own research materials, which consisted of several financial newsletters. By the time he departed this earth, she was a fairly confident investor, but thought, correctly, that she still had a lot to learn.

Now she knows she’ll never stop learning. And those who follow her advice will never stop learning either. Nor will she ever advise buying a specific company. That is a very personal decision.

Tune in tomorrow for Part 2 of Starting Over.


About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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