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6 things you should know before opening an investment account

Laura McCamy   

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  • You're never too young to begin investing, and you don't have to be rich to open your first investment account.
  • Don't let your emotions rule your investment decisions. When the market turns down, smart investors wait it out.
  • Understand your investment goals. That will help you decide where to put your money.
  • Angela Moore, a certified financial planner (CFP), has some advice to get you started.

Angela Moore's first job after college was as a finance director for a car dealership. She spent all day looking at other people's credit and, she said, "I quickly realized that there was a huge financial literacy problem in the community."

Moore decided to go back to school so she could help people close this gap. She is now a CFP and a certified financial education instructor with her own firm.

Whether you have a little money saved up or you just got a windfall, Moore thinks "everybody should look at opening some type of investment account." She noted that most bank accounts pay interest rates that don't keep up with inflation, so your savings lose value over time.

Your investment account can be an IRA, 401k, or any brokerage account that hold funds made up of stocks, bonds, and other investments. Here are six things to think about before you open your first investment account.

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