CONSUMER ALERTS

The ABCs of investing

No matter what your stage in life, you’ve probably said at least once, “If only I had the money to. . .” You may want to save for expenses such as a new home, your children or grandchildren’s education, or  later retirement years, but how do you get started?

     A great first step is educating yourself. The U.S. Securities and Exchange Commission and the Federal Citizen Information Center (FCIC) have just the materials you need. Investing Basics is a free kit of publications that offers a range of helpful tips to get you started.

     Your first step should be to make a financial plan. It outlines what you want to save and invest for, your current financial situation, and what your income and expenses are. Figure out where your money goes each month, and then make sure you’re spending it on things that are important to you. Cut out money spent on things you don’t use, comparison-shop to spend less, or eliminate debt by paying off a high- interest credit card. The Investing Basics kit has resources you can use to make your plan, as well as information on finding a financial professional who can help you.

     Your plan should also include ways to save for your goals. Try to find some extra money each month and put it to work for you by investing it somewhere—savings accounts, mutual funds, or stocks and bonds are common options. Learn about each kind of product with Investing Basics and get pointers on important questions to ask an investment expert about them. You definitely want to know where your hard-earned money’s going and the risks and benefits of each product. The kit even has suggestions for what to do if you have a problem with an investment.

     Once you’ve chosen your investments, keep tabs on them over time so you know that they’re keeping pace with your changing goals. Your needs at different ages are probably quite different, and the way you invest should reflect this. Changing the percentage of money you have in each type of investment means your money’s working its hardest for you and will be available when you need it, whatever your life circumstances may be.

     Saving and investing take practice. There are three easy ways to get your Investing Basics kit:

• Send your name and address to: Investing Basics, Pueblo, Colorado 81009.

• Visit www.pueblo.gsa.gov/rc/n75investingbasics.htm to place your order online or to read or print these and hundreds of other Federal publications for free.

• Call toll-free 1 (888) 8 PUEBLO. That’s 1 (888) 878-3256, weekdays 8 a.m.  to 8 p.m. Eastern Standard Time and ask for the Investing Basics kit.

     Get even more information and take advantage of online government resources at www.USA.gov and www.GobiernoUSA.gov—your official English and Spanish web portals to the Federal government.