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[quote=Anonymous]It depends on whether or not you actually want to be investor or if you only want to participate in the market. It seems that many and perhaps most people are uninterested or perhaps afraid to invest in individual stocks. If you fit into that category you should buy shares in the Vanguard 500 Fund, reinvest your dividends and check back in when you're 65. You will certainly be pleased with the return on your investment. However, if you want to learn about the market, grow your wealth and be ready when investment opportunities arise to double or triple your money you will own shares of stock in individual companies.

If you are observant related to the world around us, if you naturally without any great effort follow the news and other economic trends it's not very difficult at all to pick winniners and losers in the market. To be successful you much be able to pick both the winners and the losers.

Get started by buying a basket of dividend paying stocks. Google Dividend Champions and Dividend Achievers. There you'll find lists of companies which have consistently paid dividends for years without any decreases in yield payments. Buy shares in about thirty different companies so you'll be diversified. If one fails you'll still be supported by the other 29. Set up your brokerage account to automatically reinvest your dividends to purchase more shares in thos companies. The ice thing about that method is that there is not brokerage firm cost for reinvesting dividends into shares of the same companies. Over time this method has a compounding effect.

In time because you have money in the game you'll begin to track market slightly more closely. You'll be able to spot trends and opportunities to buy or reasons to sell.

It's really not rocket science. It's just a matter of watching the world around you and acting accordingly. I know you can do this and do this successfully and become very wealthy over a period of decades.  However, if you don't have a real interest in this kind of finance or if you doubt your abilities to maintain a broad outlook related to your investments then you should simply buy shares in the Vanguard 500 Fund.

NEVER, pay anyone to manage your money. The 1-2% you will pay them annually will consume most of the compounding accumulation of wealth you would have otherwise gained over decades of investing. [/quote]

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