5 Ways to Start Investing with $50
It doesn't take $10,000 for you to get started investing. You can invest with as little as $50. That's right! You can buy stock with as little as $50. The first step is to determine what asset class that you would like to invest in. You can invest in any asset class (stocks, bonds, mutual funds, CD's) online.
1. Online Brokers
Now it's time to get started. If you choose to invest in stock, you can use online sites like Buyandhold.com or Sharebuilder which allow you to buy stock with only $20. These sites have very low fees and are great for the beginning investor. Buyandhold has a fee of only $6.99 per month which gives you 2 free trades every month. Sharebuilder has no monthly fee and charges just $4 to buy stock and $9.95 to sell stock.
2. Government Saving Bonds
If you choose to invest in bonds, you can use the TreasuryDirect website. TreasuryDirect is the US government's official website that sells US savings bonds. I bonds and EE bonds can be bought for as little as $25.
3. Mutual Funds
If you would prefer to invest in a mutual fund, then you should look at companies like T Rowe Price and the Principal Financial Group. These firms offer automatic asset builder plans that let you invest for $50 per month. You can buy stock funds, bond funds, or commodity funds.
4. Dividend Reinvestment Plans
Dividend reinvestment plans are known as DRIP's. DRIP's are a low cost way to buy shares of stock. You can buy shares of companies like McDonalds' Nike or General Electric $50 at a time. Computershare and Mellon Investor Services are transfer agents that act as middlemen for companies and shareholders. You are buying stock directly from the company through the transfer agent. You can buy just about any company's stock through a DRIP program.
5. Direct Stock Purchase Plans
Enroll in a DSPP. A DSPP is a Direct Stock Purchase Plan which enables investors to purchase shares directly from the company. This investment service is cheaper than buying from a brokerage firm because investors avoid paying commissions. These plans often have low minimums that allow investors to automatically buy shares each month and reinvest dividends in the company automatically. Most major blue chip stocks offer direct stock purchase plans. Visit the company's web site for more information.
For more information read [http://buylikebuffett.com/index.php/2010/08/how-to-pick-the-right-mutual-fund/]
1. Online Brokers
Now it's time to get started. If you choose to invest in stock, you can use online sites like Buyandhold.com or Sharebuilder which allow you to buy stock with only $20. These sites have very low fees and are great for the beginning investor. Buyandhold has a fee of only $6.99 per month which gives you 2 free trades every month. Sharebuilder has no monthly fee and charges just $4 to buy stock and $9.95 to sell stock.
2. Government Saving Bonds
If you choose to invest in bonds, you can use the TreasuryDirect website. TreasuryDirect is the US government's official website that sells US savings bonds. I bonds and EE bonds can be bought for as little as $25.
3. Mutual Funds
If you would prefer to invest in a mutual fund, then you should look at companies like T Rowe Price and the Principal Financial Group. These firms offer automatic asset builder plans that let you invest for $50 per month. You can buy stock funds, bond funds, or commodity funds.
4. Dividend Reinvestment Plans
Dividend reinvestment plans are known as DRIP's. DRIP's are a low cost way to buy shares of stock. You can buy shares of companies like McDonalds' Nike or General Electric $50 at a time. Computershare and Mellon Investor Services are transfer agents that act as middlemen for companies and shareholders. You are buying stock directly from the company through the transfer agent. You can buy just about any company's stock through a DRIP program.
5. Direct Stock Purchase Plans
Enroll in a DSPP. A DSPP is a Direct Stock Purchase Plan which enables investors to purchase shares directly from the company. This investment service is cheaper than buying from a brokerage firm because investors avoid paying commissions. These plans often have low minimums that allow investors to automatically buy shares each month and reinvest dividends in the company automatically. Most major blue chip stocks offer direct stock purchase plans. Visit the company's web site for more information.
For more information read [http://buylikebuffett.com/index.php/2010/08/how-to-pick-the-right-mutual-fund/]
