|
|
|
Investment Advice 3 Steps To Start Investing With Just 100
nvestment advice is free. While it is possible to
usually geared toward those make more money investing than
with thousands, or at least you are losing on finance
$1,000 to invest, in addition to charges, it is highly unlikely.
the standard three-to-six-months Your money is best spent lowering
salary socked away in a savings credit card balances.
account.
Also, if you have no cash
Most of us know how important it savings, you should consider
is to supplement our retirement putting this plan off until you
with additional investment in have savings equal to at least
traditional taxable investment three months’ salary.
accounts. Simply maxing out your
IRA contributions and putting Finally, if you would be
away 6% of your paycheck into the devastated if you lost all of the
employer’s 401(k) just may not do money you invested, you should
it, but not everyone has the probably stay away from directly
thousands that most investment investing. While not likely if
advice requires.Here is a plan you are conservative, it is
developed with the ultra-small possible to lose all or some of
investor in mind. It takes just the money you invest, no matter
$100, every month for a year. what the security.
Should You Invest? Start Investing With Just
$100
First, it is important to
prioritize your financial 1. Open a brokerage
concerns. If you have account with a low-cost online
high-interest credit card debt, broker. It’s important that
do not invest until you are debt you’re not paying more than $5
per trade, because that’s money Now, you can't easily have a
that will be coming out of your widely diverse portfolio with
investment. Also, make sure that $100, since that won't even get
the broker you choose has no you one share of Google (GOOG) or
minimum account balance, or fees Toyota (TM). But Exchange Traded
will eat up your entire balance. Funds (ETFs) make it easy to
For more about discount stock invest a small amount of money in
brokers you can visit our broker a wide variety of securities,
comparison chart. because they are shares in a
2. Fund your account. This larger pool of securities. The
is where you send your first $100 Vanguard Total Stock Market VIPER
to the broker via check, wire (VTI) tracks over 6,000 U.S.
transfer, or ACH transfer. I stocks, and it's like investing
recommend ACH transfer, which is your first $100 in the entire
like an electronic check, because U.S. stock market. The iShares
a check will take a few weeks to MSCI-EAFE (EFA) invests in stocks
process and a wire transfer is from Europe, Australia and Asia.
too costly for investing such a The iShares Lehman Aggregate Bond
small amount. (AGG) tracks the Lehman Brothers
3. Make your first Aggregate Bond Index, and it's
investment. like investing your $100 in the
entire bond market.
What you invest in is, of course
very important, and professional If, after three months, you have
investment advice is too put $100 into each of these
expensive if you're only funds, you will have a
investing $100. But studies have well-diversified portfolio that
shown that the best returns come should withstand most of the
from widely diverse portfolios. market's fluctuations. Losses in
any particular sector of the
stock market should be offset by (and then pull back, and then
gains in other areas of the grow again) you should learn more
market. Add to it each month, about asset allocation and
never investing less than $100 at portfolio diversification, which
a time, and you should see the are the keys to investment
value of your account grow just success. The more diverse your
as the stock market does. investments, the more you will be
able to withstand volatile
There are many ETFs to choose markets when stocks dip.
from and they are getting more
diverse, including junk bond and Finally, when the total value of
commodities funds. Personally I your investment reaches $10,000,
would stay away from them until you should consider seeking
there's at least $1,000 in stock professional investment advice
and traditional bond ETFs, since and transferring your holdings to
the majority of your portfolio traditional mutual funds, which
should include traditional are a bit easier to manage, but
investments, not alternative typically have higher investment
investments. minimums.
As you watch your investment grow
About the Author:
Pat Regan is the publisher of an investment advice website, where you can compare online brokers.
Read more articles by: Pat Regan
Article Source: www.iSnare.com |
|
