Stock Market stumped? Tools available to become an educated investor
MILWAUKEE – Investing money in the stock market can be intimidating – especially if you’re just starting out.
Getting started
<!–>
Why you should care:
–> <!–>
“It’s a really close-knit city; everybody knows each other,” said 21-year-old Ahnesty Washington, who FOX6 Cents met as she looked out over Milwaukee from the top of the Baird Center downtown. “I’m pretty content with where I’m at right now with my age. I hope to continue to be successful.”
–>
FREE DOWNLOAD: Get breaking news alerts in the FOX LOCAL Mobile app for iOS or Android
<!–>
Washington will start her junior year at MSOE in the fall. She’s studying to become a nurse. While her career goal is to help save lives, her personal goal is to save money.
–>
“This year, I learned more about high-yield savings accounts – it just really interested me, because when you keep putting money in, it stacks up,” Washington said. “It accumulates over time.”
<!–>
Ahnesty Washington –> <!–>
–>
Washington’s talking about the wonders of compound interest. Washington said, in just three years, she grew her savings account to about $20,000. Now that she has some money set aside, Washington wants to do more with it. She’s looking to invest in the stock market.
<!–>
“I think it’s just intimidating because you don’t really – it’s hard to understand,” she said.
–>
Financial expert’s advice
<!–>
What we know:
–>
FOX6 Cents took Washington’s questions to the 17th Annual SecureFutures’ Investment Conference in May. The ballroom was packed with a who’s who of local financial experts. Presenters offered their own investment ideas and perspectives to the crowd. Among them was Bob Wynn.
<!–>
“We know that all financial literacy is very important, and a lot of financial literacy currently focuses on savings, budgeting and credit, but not as much on investing,” he said.
–>
SIGN UP TODAY: Get daily headlines, breaking news emails from FOX6 News
<!–>
Wynn is the president of Madison-based Climb USA. This summer, the organization is offering an eight-week-long “stock market simulation” to kids and adults, to help people experiment with buying and selling stocks.
–>
“The idea is that each person who enrolls gets $100,000 of fictitious money, mind you,” Wynn said, “and then they are allowed to invest on our simulated brokerage platform that we call the Climb Stock Exchange.”
<!–>
Bob Wynn, president of Madison-based Climb USA –> <!–>
–>
FOX6 Cents told Wynn about Washington’s desire to have her money do more.
<!–>
“I would say, if she hasn’t become an actual stock investor, now is a perfect time to begin her learning journey.” said Wynn, adding that even when U.S. markets crashed earlier this year, new investors like Washington can still benefit.
–>
Buy low, sell high
<!–>
Dig deeper:
–>
“I teach eighth-graders the mantra of buy low, sell high. Investing is a little bit counterintuitive,” said Wynn. “You have to fight your emotions, because when the market is crashing and going down, the human inclination is to sell.”
<!–>
Wynn breaks it down like this – while thankfully keeping the math simple for us.
–>
FOX6 CENTS: Find more financial advice from industry experts
<!–>
Let’s say you invest $50 in McDonald’s stock. If one share is worth $50, then you’ve purchased one share. If the market goes down and the share’s value dips to $25, you could then buy two shares for your $50.
–>
<!–>
But if the market swings up, and McDonald’s is suddenly valued at $100 a share, your $50 will only buy one half of a share. Again: buy low, sell high.
–>
“The people who think they’re playing it safe and staying out of the market are actually missing an opportunity for long term capital appreciation for their assets,” Wynn said.
<!–>
“Some people feel like saving is for when you have a career or established,” laughed Washington. She knows that isn’t true. After working two jobs and studying hard, she’s ready for her money to work for her.
–>
“Seeing how much I’ve saved kinda makes me excited to keep saving, because I know I can keep building on that. It just makes me feel really safe and comfortable, because I know that I have something I can fall back on if anything happens.”
<!–>
The Source: FOX6 News interviewed the people included in this story and gathered information from SecureFutures and Climb USA.
–> <!–>
–>