Q: My neighbor says that autumn is a good time to get started in the market. He always seems to make money. Is he right about this?

A: He's half right. Autumn is as good a time as any. But it's no more special than winter or spring. I've heard the studies that say stocks do well from November through April. But take a look at what happened last year. Stocks began to sink in the fall and kept falling right through April.

I'd love to see your neighbor's portfolio. Only then would we know how much money he really makes. He sounds to me like one of those investors who is always trying to make sense of the market, to make it fit into some kind of pattern. The truth is that no one knows when the market will take off or when it will sink. Those who look for patterns usually end up trading too much and getting lower returns.

One of the hardest things for investors to learn is that stocks provide a higher return because the risk is higher than buying, for example, bank certificates of deposit. You can't control the risk. You're either willing to take it or you're not. For most people, it's better just to get in there. Ignore the short-term gyrations of the market. Ignore the predictions on the nightly news. Ignore your neighbor.

But don't ignore the emotional cost of investing. It can be hard on your nerves if you're not prepared for it. This is what trips people up every time. Most people hate to lose money. Intellectually, they can entertain the idea of watching the market go down with the smug knowledge that it will head back up. But when it actually happens, they say: "Yikes! That is my hard-earned money. And it is going up in flames. I must put a stop to this." Everything that Mom and Dad and Grandma ever taught them comes into play. They don't want to be fickle or foolish or wasteful. They don't want to gamble their money away. So when the market sinks, they bail out.

That's what happened to so many new investors in my online newsgroup last spring. They watched the market tumble down and down and down. And then they sold. At the bottom. They just couldn't take it anymore. Here is what one investor wrote: "I thought I would hold forever. If my funds had continued to grow, I probably would have."
I don't believe we can make sense of the market in the short term. I think you just have to get in there-but only after you've thought through, really thought through, what you will do when the market goes down. The stock market rewards those who have patience, who hang in for the long term.

Q: Whenever I read a story about how to get started as an investor, the example is somebody who makes $50,000 a year. I don't make half that. Should I bother investing?

A: Yes, of course. The key to financial success isn't the amount of money you make. It's discipline. Financial planners tell me that it is the clients who make the most money who waste the most.

You should do just two things. First pay off your credit card debtThat gives you a guaranteed return that equals whatever interest rate the debt carries. So if you owe $500 on a credit card with an 18 percent interest rate and you pay it off, you've earned 18 percent on that money.

Second, set up a savings discipline. Make a game of it. Arrange to have a certain amount taken out of every paycheck and deposited in the credit union at work.

Start small and then see how far you can stretch it. When you've accumulated a bit, set up the same kind of monthly plan to invest in a conservative balanced fund, one that invests in both the stock and bond markets. You can do that for as little as $25 a month.

That is the best way to get started no matter how much money you make.

Q: My husband and I are expecting our first child. I want to start a college savings plan, but my husband refuses. He paid for college himself and says he wants to teach our child the same important lesson.

A: One of the interesting things about having kids is that it challenges your most cherished beliefs. Like your husband, I paid for college myself and I felt the same way. Now I have kids, 15 and 11, and I see how hard they work at school and sports and part-time jobs.

I see, too, that the world is much more complex. Kids have to demonstrate knowledge and expertise in computers, and they must show leadership skills and have hobbies, community service, and summer internships to put on their résumés.
I want to help my kids with college. And I'll bet your husband will too. I wouldn't push him now, though. Give him a little time.

E-mail your personal finance questions to MoneyQuestions@neamb.com.

Mary Rowland is an author and contributor to several financial planning magazines. You can e-mail your personal finance question to her at MoneyQuestions@neamb.com.

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Thrifty Educator

This month's money-saving tip comes from Edward Chappie, a fourth grade teacher from Johnstown, Pennsylvania.

"I ask my fourth graders to bring in books that they've already read. Then we set up displays for those who brought books to sell. Booksellers also get a chance to circulate and buy books from others. Since there are at least five book exchange days in a school year, the students get to resell many of the used books that they bought. I've found that it's good to set a price limit on what a used book may sell for. Thirty minutes is plenty of time for a book exchange period. Parents are especially happy that their children are getting to read many books at little or no cost."

Got an idea?
If you have a suggestion for how your colleagues can save money at school, send it along to neatoday@nea.org.