Brooke on Tour

Buying a house, a comfortable retirement, college for the kids---it all takes money and time to build a portfolio. Here's what you need to start a successful investment program.

Attitude -- First, believe that you can do this. Maybe your grandparents and parents didn't invest but this is a new millennium so old excuses don't work anymore. Wall Street will always make headlines with its roller coaster gyrations on a day to day basis, but, long-term, stocks earn an average of 10.5% annually, compared to 3.1% for bank savings accounts.

There's no perfect time to start a regular investment program. Do it when you have the money---like a large Christmas bonus or a tax refund check. Start small.

Mutual fund companies like Strong (800-368-1030), American Century (800-343- 2021) and Invesco (800-2-INVESCO) allow you to start automatic investment plans with as little as $50 a month. Only one African American mutual fund has beaten the S & P 500 Index, with a 32% return. The ProfitValue Fund managed by Eugene Profit (888-744-2337), www.profitfunds.com, also allows new investors to open an account with $1,000 or do $50 a month automatic investing.

Priorities -- Finding the $50 a month isn't difficult if you make a commitment to yourself to do it. Look at how much you blow each month on fast-food meals, CDs, paperbacks, movies, magazines and hair appointments. It adds up-- and what do you have to show for it?. Over a 30-year period, $50 a month invested in stocks, growing at 10 percent a year will cost you $18,000 but you would have earned $113,024.40. The web site www.dripadvisor.com shows you how to you can buy up to three stocks a month with as little as $100 a month.

You can start buying many of these stocks with as little as $250 through a DRIP, or a dividend reinvestment plan. Call 888-OWN-A-STOCK for a list of the 900-plus companies that have DRIPS or visit www.netstockdirect.com to get the rules on each company's plan or enroll direct on the internet. Some companies require that you buy the first share of stock through a stockbroker before enrolling in the plan.

Take it off the top -- Set up an automatic wealth-builder investment plan that takes the money out of your paycheck before you get it. Mutual fund families like Fidelity (800-544-8888), Vanguard (800-962-5102), TRowePrice (800-541-8462) and TIAA-CREF can arrange to take the money out of your hands before you get it. If you don't see it, you can't spend it. After a couple of paychecks you won't miss it. After a few months you'll see how easily it is to accumulate money without any strain. Discipline is the key here. Investing, like diet and exercise, offers the best result when you do it on a regular basis.

Treat it like a bill -- The rent, car note and phone bill have to be paid each month and so do you, or else, what's the point of working? Your investment accounts are a way of paying yourself first so get on your own payroll. Start with one to two percent of your take-home pay going into a money market fund. As you see your account grow you will gladly increase it as your income grows.