Could I invest in the stock market with only a small amount each month?
So each month a portion of my check goes towards my 401k, which is in turn managed by Fidelity with no other work on my part. Initially I had very little money in there, but now I have quite a bit.
What I am wondering is if I can basically do the same thing with my normal savings. Like can I give someone $100 a month that they invest for me and I keep giving them $100 a month while letting them manage everything. I don't have a lot of money to invest right now, but I just let it accumulate and earn for me.
I'm sorry this is all phrased absolutely stupidly.
- SteveLv 61 month ago
If you have an advisor invest your $100 a month, prepare to owe at least half of that in their advisor fees. I started with an advisor, but quickly thought damn, $50 is a lot to give someone just for giving their opinion (which may be wrong) on what to buy and then buy it for you. So any way, I stayed with them for about 6 transactions and then looked into doing these trades myself and what Ive found is that its not so hard. Sure, Ive had winners AND losers, but anyone would with an advisor as well. So its your money, so why not take an active role in helping it grow? That is skip the advisor and go it alone. Theres plenty of material online to learn from and the business you use to make your trades has info available, too. Im not one for funds as I like the challenge and the search for something good. You can easily find out what stocks are in those funds and buy some of those. If a fund manager has enough faith to buy millions of dollars in shares, why shouldnt we be on that bandwagon as well?
- babyboomer1001Lv 71 month ago
$100 is NOT going to get you into the stock market and giving someone $100 or more to invest for you is STUPID STUPID STUPID. That's how you lose everything. You will need a minimum of $2,500 to get into the stock market and the better stocks are $5,000 and up.
- A nobodyLv 71 month ago
Without having more information about your personal information, such as age, current income and other data such as risk tolerance, martial status, demographics, income & expenses, and your current liabilities it would be very inappropriate for me or any other responsible person to provide specific investment information in this type of media.
Also it would not be appropriate for any professional to provide any specific investing advice based on the information provided. And it would not be prudent for you to accept any specific investment advice from unknown individuals here at YA or a similar media.
There are many people just like you that are, or were looking to invest and those that did bought Mutual Funds and/or Exchange Traded Funds (ETFs). One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no investing experience. Once you feel you at least have an understanding of investments you should look into ETFs which are similar to mutual funds but are traded on the exchanges.
Mutual Fund companies as well as ETFs and Master Limited Partnerships have an entire array of products many will fit your needs. Read about the various products and in doing so you will be getting investment ideas and at the same time educating yourself about investing. And take the time to read “Common Sense on Mutual Funds” by John Bogle & David Swenson, or just read – “Bogle on Mutual Funds” by John Bogle.
You could also contact the funds companies for more information. I have found that Vanguard (http://www.vanguard.com/) can meet your needs for mutual funds, or you can open another account with Fidelity. The service and information they provide is all free and you will find it helpful. You can also read about Master Limited Partnerships at “the Dividend Detective” http://www.dividenddetective.com/
Regardless of what you decide, do not ever let anyone tell you not to invest, especially those that do not invest themselves.
Good luck on your journeySource(s): from The Street
- tiescoreLv 61 month ago
You bet, Mutual Funds will often let you start with a zero balance if you sign up for a monthly investment plan, Robinhood lets you invest small amounts and even Schwab lets you start with $1000, you'll have to select your own investments but adding to a mix of diversified sector ETFs. m1finance lets you build a whole stock or ETF portfolio and divides your investment between your selections and purchases fractional shares. Go get the Dummies Guides to Investing & the one on Personal Finance it'll give you knowledge of what investments and investment tools are out there so you can plan for your financial goals. While your reading put your $100 a month into your emergency savings account, you want at least $1000 in there to start and add a little bit each month going forward. I like Capital One 360 as you can set up sub-account for different savings goals as well as your emergency fund. Also keep track of your investments, cash, retirement accounts, other assets and liabilities on a spreadsheet that you up date at the end of each month... it will get you focused on the big picture and really help you grow wealth.
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- JudyLv 71 month ago
It would cost a lot to let someone totally manage a small amount. You'd be better off putting it in a mutual fund or two. Fidelity will very possibly advise you on good funds.
- SlumlordLv 71 month ago
You can open a regular account at Fidelity, send them $100 per month and thenbuy whatever you want. Probably easier to open an account at a discount brokerage but whatever you choose.
- Anonymous1 month ago
You don't need to give it to anyone, you can do it yourself. Just pick a low or no fee index fund. Fidelity is great. One mutual fund is like an index fund, FNILX, no fees so all your money goes to work for you.
- Kid MohawkLv 51 month ago
Just open up an E*Trade account (or go with whomever you like) and pick a two or three Index Funds. You'll need to put very little thought into it from there unless you actually wish to become more active.
Just be very, very aware that you won't get rich overnight. Just as your 401k took years to grow, so will your savings. It could be a decade before you start seeing serious returns. I'd also encourage you not to panic each time the market has a downturn. A lot of people lost a lot during the recession, but a lot of people walked away wealthy by simply investing harder.
Edit: I forgot the obvious; you can just use Fidelity since you already have an account with them.
- StephenWeinsteinLv 71 month ago
That might not be enough for it to be worth someone's effort to manage it for you, but you could invest it yourself, probably by buying shares of an ETF.
- L. E. GantLv 71 month ago
Yes, it's a good idea. It would be better if you could control it yourself, but $100 a month in a good investment fund can be worth a million of more in forty or so years. It doesn't take a huge income to become a millionaire, but it does take discipline and commitment.
Good luck, and hope you find a fund/manager who will take your investment to great heights!