Are you considering investing in the stock market for the first time, but are hesitating? If you are serious about taking the plunge, think of your situation in terms of behavior change. That is, think of what it takes to go from being an outside observer to an actual newbie "investor."

Behavior change works in stages. The Transtheoretical Model of Behavioral Change (TTM), developed in the late 1970s to describe the "process of intentional behavioral change," can be a guide. (Abstract available at tinyurl.com/yc6tu2sp.)

According to the authors of the study, TTM consists of six stages: "precontemplation, contemplation, preparation, action, maintenance and termination."

Stages can be applied to the hesitant future investor as well. "The New Investor Roadmap," part of the recently released report by the FINRA Investor Education Foundation and Commonwealth titled "Exploring the Stages of the New Investor Journey: Actionable Insights for Industry Stakeholders" (tinyurl.com/mpwxrc9p), does just that. Commonwealth is a national nonprofit building financial security and opportunity for financially vulnerable people through innovation and partnerships. FINRA's foundation provides educational programs and research to help consumers reach their financial goals (tinyurl.com/bdhn96xj).

The New Investor Roadmap identifies four stages: Contemplating; Starting; Engaging and Integrating. As we talk about each stage, see if you can identify where you are in the process.

In Contemplating, one starts "to weigh the benefits, barriers and risks." The length of the contemplating stage can vary, as people consider "whether investing is right for them." This stage can last "anywhere from weeks to years."

Contemplating is a time for gathering information: "Networks, such as family and friends, can help determine how long new investors remain in the Contemplating stage." Also, "Trusted representatives of financial institutions within local communities can help [people] gain awareness and knowledge about investing."

The Starting stage comes next, where "potential investors transition from contemplating to actually opening an account and making their first investment." These newbie investors consider financial basics: "How much to invest, where to invest and risk tolerance."

Making decisions on investments "can be influenced by how easy or difficult products are to understand." Also, investors "are in search of others with similar goals and experiences, including looking toward friends and family for support."

At the third stage, Engaging, these new investors become "more familiar with how investing works" through gaining experience and knowledge.

Now, there is continued learning and self-discovery based on how their investment decisions are playing out. Educational resources (newsletters, webinars, interactive tools) remain important as investors seek to expand their knowledge so they can reach their investment goals and minimize their losses.

In the fourth stage, Integrating, investors "no longer desire to constantly engage with their investment accounts" and "are now in a position to start exploring whether different investment opportunities would align with their objectives and risk tolerance."

Within their personal networks, new investors "recognize the value of accurate information and seek this from trusted professional sources, rather than from family or friends." In addition, "they start sharing their knowledge with family and friends."

Seeing things in stages of behavioral change can help with "an investor's journey, from the first time they learn about investing through becoming a knowledgeable and confident investor," according to the report.

Before leaving this subject, be sure to take advantage of tools and guidance from regulators. FINRA, which oversees the U.S. broker-dealer industry, provides helpful information about investing basics and other subjects at tinyurl.com/muyuj33k. The U.S. Securities and Exchange Commission, the federal regulator of the financial industry, also provides resources on its Investor.gov website. See Introduction to Investing (tinyurl.com/3fkbnker).

If you are thinking about becoming an investor, send me questions I can answer in this column (readers@juliejason.com).

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Are your retirement savings on track?

Reports vary. The Federal Reserve's Economic Well-Being of U.S. Households in 2023 report (tinyurl.com/4zy7m6k5), released in May 2024, indicated that only 34% of non-retirees said their retirement savings were on track. Another 19% said they were not sure. Those results are not reassuring.

On the other hand, the 2024 Retirement Confidence Survey, conducted by the Employee Benefit Research Institute and Greenwald Research, reported that 68% of 1,255 workers were "very or somewhat confident" they would have enough money for retirement. The workers (along with 1,266 retirees) were surveyed in January 2024 (tinyurl.com/54dyy6an).

A common concern reflected in these and other surveys? Inflation.

"[I]nflation remains a top reason for Americans' lack of confidence," the 2024 Retirement Confidence Survey stated. "Among those who do not feel confident, 31% of workers and 40% of retirees cite inflation as the reason why."

In addition, 78% of workers said inflation would stay high for at least the next 12 months (down from 86% answering the same question in the 2023 survey).

Thirty-five percent of those in the Federal Reserve survey self-reported inflation as being the main financial challenge, which was similar to 2022 (33%). In both years, "inflation" finished ahead of any other challenge.

Similar concerns have emerged elsewhere. A recent survey of 2,392 adults in early May by CNET Money, a digital media publication, found that 93% of adults are concerned about inflation (tinyurl.com/4xnzz38p).

Asked about the financial goals that have been postponed by those in the CNET survey, 38% said saving for long-term goals, and 24% said investing for long-term goals such as retirement or property.

There also is this: 63% of respondents said they worried more about running out of money than they did death, according to an Allianz Life Insurance Company of North America survey in February and March of 2024 of 1,000 individuals 25 and older (tinyurl.com/2s39akkr). The most common concern related to the worry about running out of money? High inflation, at 43%.

It's important to keep in mind that the Consumer Price Index, a measure of inflation, increased 6.5% between December 2021 and December 2022 (tinyurl.com/2n8u2nmh). However, the increase was only 3.3% from May 2023 to May 2024 -- the most recent report issued by the U.S. Bureau of Labor Statistics (tinyurl.com/bdch46a4). Yet despite the improving numbers, survey respondents still view inflation as a concern.

Another explanation for the concern? "Despite multiple indicators of improving economic conditions, the idea of a 'vibecession' -- which is defined as 'a period of widespread pessimism about the economy regardless of the actual economic situation' -- seemed to persist across the U.S. workforce," was cited in Fidelity Investments' "Building Financial Futures" (tinyurl.com/mr42tw5s).

The report also noted that "the percentage of Fidelity customers who felt optimistic about their finances, their health, and their work at the end of 2023 increased by double-digits from the end of 2022." However, "anxiety about the economy continued among Fidelity customers, with 75% indicating that they are stressed about higher prices and the increasing cost of living."

How do you view inflation these days? Do you feel that your saving for retirement is on track? No matter where you stand, consider how these Allianz Life survey responders are addressing their concerns about running out of money:

-- Increase retirement savings (41%)

-- Reduce current spending and save more (38%)

-- Put portion of retirement savings in a product that provides lifetime income payment (35%)

-- Work longer and retire later (35%)

All good suggestions. Consider whether these are realistic and practical options for you if you would like to improve your retirement preparedness. And let me know if you would like to talk more about this subject. Write to me (readers@juliejason.com) with questions I can answer in this column.

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So far, the IRS has processed 144 million tax returns through May 10, 2024 (tinyurl.com/5t59f7xm). Most (137,394 million) were e-filed either by the taxpayer or a tax professional.

The Free File program (tinyurl.com/4hsj7bnp), which involves private-sector partners teaming with the IRS to offer free online tax software to qualifying taxpayers, is still available for tax 2023 taxpayers on extension, and longer -- as the IRS announced a five-year extension of Free File through October 2029.

The Free File program, which is only available on IRS.gov, processed 2.9 million returns in 2024 as of May 11, which was up from 2.7 million returns filed during the same period last year (tinyurl.com/5t59f7xm).

There were eight private-sector firms that served as Free File partners in 2024. To qualify for using Free File, taxpayers had to have an adjusted gross income (AGI) of $79,000 or less in 2023. Those taxpayers with an AGI over $79,000 could still use the IRS Free File Fillable Forms.

Another program called Direct File (tinyurl.com/mryhy5cj), which is a "free, public electronic return-filing service option," will become a permanent option beginning with the 2025 tax filing season. Direct File is part of the IRS Inflation Reduction Act Strategic Operating Plan (tinyurl.com/5n6pnt58).

Tests through a 2024 pilot program were quite successful, with more than 140,000 "relatively simple" tax returns being filed through Direct File. The IRS program focused on full-time residents of 12 states. If a taxpayer had a tax situation that was not part of the scope of the program, he or she was directed to other options.

Ninety percent of more than 15,000 Direct File users who participated in a survey said that they ranked their experience with Direct File as being excellent or above average, as detailed in the "IRS Direct File Pilot: Filing Season 2024 After Action Report" (tinyurl.com/2muyvtz8). Also, 86% of those surveyed said their experience with Direct File increased their trust in the IRS.

Nearly half of Direct File users "reported paying for tax preparation the previous year," IRS Commissioner Daniel Werfel stated in the report, adding that "the Treasury Department estimates that Direct File users saved $5.6 million in tax preparation fees."

Keep in mind that statistics published in the instructions for IRS Form 1040 for tax year 2023 indicate that non-business taxpayers, who make up 72% of all tax returns, spend roughly nine hours and $150 in preparing their taxes each year (tinyurl.com/y8hays3r).

Direct File also "issued more than $90 million in tax refunds and collected $35 million in tax balances due," Werfel said. Overall, the IRS distributed more than $269 billion through May 10, 2024.

The IRS pointed out in its statement that Direct File "will continue to be one option among many from which taxpayers can choose. It is not meant to replace other important options by tax professionals or commercial software providers, who are critical partners with the IRS." The IRS added that it "remains committed to the ongoing relationship with Free File Inc."

Other IRS free filing options for qualifying taxpayers include the Volunteer Income Tax Assistance program and the Tax Counseling for the Elderly program (tinyurl.com/34jbmdxz), with 2.6 million returns prepared through those options.

Expect to hear more details about an expansion of Direct File in the coming months, according to the IRS.

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