She Strengthens

Unlocking the Secrets of Investing: A Personal Journey

As a non-finance enthusiast, the concept of investing often seems like a foreign language. But, what if I told you that owning and selling stocks on Wall Street can be demystified? My unexpected entry into the world of investing began when I inherited an investment account from my grandmother. With no background in economics, I embarked on a journey to understand the workings of the stock market.

Taking Ownership

When I turned 21, I became the legal sole owner of the account, managed by an Investment Advisor hired by my mother. I soon realized that I had the power to change Capital Management companies, but I chose to stay with my current advisor, who helps me navigate the complex world of stocks.

The Power of Research

As an Art History major, I knew how to research like nobody’s business. I spent countless hours looking up investment terms, understanding IPOs, and learning about the stock market. My research skills helped me grasp the basics of investing, and I now have a good understanding of the inner workings of Wall Street.

The Goose that Lays the Golden Egg

The fable of the Goose that Lays the Golden Egg is a timeless lesson in the world of investing. When I keep my stocks, CEOs pay me dividends, which I can choose to reinvest or transfer to my checking account. Selling my stocks means I’ll no longer receive dividends, making it a less satisfying approach.

Market Fluctuations: The Unpredictable Nature of Investing

I experienced firsthand the unpredictable nature of market fluctuations when I lost $10,000 in a single day due to interest rate changes. Luckily, the stocks rallied, and the market value returned to its former level. This experience taught me that decisions made in Washington can impact my investments.

The Freedom to Spend

As the owner, I have the freedom to sell my stocks and spend the cash on whatever I want. However, this means I’ll no longer have any stocks, making it essential to weigh my financial decisions carefully.

Capital Gains Taxes: A Year-to-Year Variable

I paid minimal Capital Gains taxes this year, but this can change from year to year. As my employment income changes, so will my tax obligations. It’s essential to stay informed and adapt to changing circumstances.

Involvement is Key

My hands-off approach to my investment account changed when I had to quit my job for health reasons. I used the money to find the best treatments and providers, which taught me the importance of being involved in my investments. This experience showed me that carefully weighing pros and cons, checking in with professionals, and following my own needs means I can make my own financial decisions.

Empowering Financial Decisions

With my newfound knowledge, I hope to continue being involved in my investments, but in a more direct way. I want to open my own investment account, make my own decisions, and take control of my financial future. By sharing my story, I hope to inspire others to take charge of their financial decisions, even if they’re not finance experts.