Lux Investing
How much money do you need to invest in stocks for the first time?
I am a first time investor interested in investing in stocks and I was wondering what the minimum amount one would need to start investing and where do I get solid info on what stocks to invest in? Any feedback would be greatly appreciated! :)
Public Comments
- My advice is to get a qualified broker. Find a broker that makes their money by making you money. (Say 1.5% of the profit you make) Large brokerage firms have analysts that study stocks and trends. Then invest a consistent amount over time. eg. even $50 a month over time will build you a nice portfolio. What is the most important is to be consistent with your deposits. Think of it the same a fixing the motor on your car. Sure, you can buy a book, and do the work yourself. But chances are that the work will be much better quality with a trained professional looking after it.
- the price of one share plus commission
- If you don't have much money, then I recommend a mutual fund instead because you need a decent portion of money to properly diversify yourself with stock. If you bought stock, being new to investing, and get burned - then it can potentially ruin your future investing endeavours and make you overally conservative. If you insist on stock, then it depends if you go fee based or commissioned based. Typically, fee based accounts start around $25,000. Commissioned is different depending on broker. You could always call up a Financial Advisor and get advice and direction.
- You don't need a broker, especially if you're only talking a few thousand a year or less. The simplest place to start is where you work. Do they offer a 401(k)? Otherwise you can open an account with an online mutual fund company. They have reps available by calling an 800-number, or you can just open the account directly on their website. Tell them you're interested in starting a Roth IRA and need an asset allocation fund that suits you. They can help you from there. They'll usually want you to have saved $2500 or so to start, but some will waive that if you set up automatic monthly deposits.
