How I Will Be Rich

This is part of my ongoing theme “The 8 Step Process to Being Rich“.

So you’ve got that job and you’ve got an income flowing. Now you even have a Roth IRA with a good Index Fund. It’s time to open a discretionary investment account. This is an account where you put your money and invest it in whatever you want. Here you can deposit money and withdraw it as you please. Keep in mind, though, you will get taxed on your income before investing and you will get taxed on the interest you’ve made once you realize your capital gains. This account is for the money you aren’t putting in your Roth. You can only invest so much per year in to that so this is where you put your money that you want to invest once you’ve already made your Roth contributions. Lately, I’ve been looking at a company called Zecco. They seem to be a real great choice for a discretionary account because they have basically no fees for simply trading stocks.

I’m not one to give stock tips on any individual stock. In fact, I actually think it’s pretty foolish to go and invest in stocks because of a tips from a website or a friend or even a TV show for that matter. The only way to trade stocks is to do your own research. Read books on analysis and investigate the companies that you want to own. My personal strategy for investing in individual stocks can be found here.

Now that you’ve come this far, it’s time to move on to Step 4: Adopt a more frugal lifestyle.

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