If you’ve read our 13 Steps To Financial Freedom, you’ll already know a lot about the Motley Fool, and particularly our love affair with the share market.

But before you dive in and buy shares in Bradman OilGasOre Resources Pty Ltd, we thought it might be an idea you get at least a basic understanding of the various investing options and products.

Welcome to our 7 part guide to Getting Started In Investing. Onwards and upwards, dear Fools…

Part 1

The Difference Between Saving And Investing

When you save money, your capital is secure. You are (usually) guaranteed to get back the sum you put in, plus interest. When you invest you have no such guarantee. Your capital is at risk. In return for this, you expect to get more back than you put in, plus a little income on the side as well.

Part 2

Why You Need To Invest

If you want to have control over your retirement age, and your retirement nest egg, you have to do it yourself. Relying on the government, including relying on the Age Pension, is simply leaving too much to chance.

Part 3

Your Four Investing Options

Despite the thousands of products on offer they all consist of just four basic investments, albeit in different quantities.

Part 4

Why Shares Are Best

Generally speaking, assets that have demonstrated higher returns tend to be more volatile, especially when you look at short periods. And the asset that has generated the best returns over the long term is shares.

Part 5

Why We Love Index Trackers

Most people are better choosing a fund with low charges, index tracking funds have the lowest charges. They are run by computers and computers tend to be a lot cheaper to run than fund managers. They don’t eat, drink, drive fast cars, have to pay a mortgage or send their kids to posh schools.

Part 6

The Benefits Of Regular Investment

Setting up a regular investment is also a good discipline, meaning that you effectively force yourself to invest every month. It’s a good habit to get into. When you get towards retirement, you’ll be glad you made all those small sacrifices in the years behind you.

Part 7

Going Beyond Index Trackers

For many people, regular investment in an index-tracking fund will cover a large chunk of their investment needs. However, if you want to try to beat the market, and have some fun along the way, you’ll have to buy some individual shares.

 

OUR #1 DIVIDEND PICK FOR 2016...

Forget BHP and Woolworths. This "dirt cheap" company is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for hungry investors, including SMSFs, this ASX company could be the "holy grail" of dividend plays for 2016.

Enter your email below to discover the name, code and a full investment analysis in our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2016.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.