Shares are for people with at least $10,000 to invest, who are mortgage-free and who do not need their money back over the next few years.

But before you invest, work through this "to do" list, ticking the items off when done:

Be sure you understand that: 

1.  Returns are usually better but can be lower than Term Deposit rates.
2.  The payment of dividends is not guaranteed.
3.  Selecting the right shares to buy is tricky, even the experts get it wrong.
4.  Shares can lose value over the short and even medium term.
5.  Some companies are badly managed and their shares can lose value.
6.  Some companies fail and their shares can lose all their value.
7.  Knowing when to sell shares is difficult, even the experts get it wrong.

Be sure you are comfortable with:

1.  The additional risk.
2.  The timeframe for investing.
3.  The costs of buying and selling shares.
4.  The need to set up a bank account with a broker.
5.  The taxation of investment income.
6.  The time and expertise needed to manage your share investments.

Do your homework: 

1.  Learn the basics of share investing.
2.  Read about companies and financial reporting.
3.  Read the financial sections of newspapers.
4.  Read share investing magazines.
5.  Read a selection of investment books.
6.  Watch and listen to the TV/Radio financial news.
7.  Take an investment course or two.
8.  Learn from fellow investors via a club or shareholder association.
9.  Consider participating in a sharemarket or investment game.
10.  Investigate if you want to invest to gain. 

Also consider: 

1.  Investing in managed funds.
2.  Investing through a full service broker.
3.  Investing in listed property trusts.
4.  Getting advice from a professional.
5.  Investing through master trusts or wrap accounts.