Lux Investing
How much money is too little to invest into stocks?
Im currently a 17 year old male, and i am becoming quite interested in the stock market. I am just curious what age, and what is the lowest amount of money i could invest into the stock market, any help is WELL appreciated.
Public Comments
- If you want to invest in individual stocks you should start out with at least $10,000. Otherwise you'd have a difficult time being adequately diversified. If you're investing in mutual funds, go with whatever their minimum balance is. Most are around $2,500 unless you do systematic investing (usually a minimum of $50 a month until you reach their minimum balance). Good luck, investing early is a great idea!
- Its not how much to invest in any one stock: Its how much of your money in that trading account is too much. One of the rules of our group is: NO MORE than 10% of the total trading account balance in any one trade. EXAMPLE: $10,000 total trading account balance NO MORE than $1,000 for any one position for any one stock. If shares are selling for $50/share, you8 should not invest any more than $1000 or 20 shares. Thanks for asking your Q! I enjoyed answering it! VTY, Ron Berue Yes, that is my real last name!
- You can start at any age, if you're a minor, just open a custodian account, I was 12 when I started, which was a long time ago, You can check with some of the fund companies. you may be able to open an account for a few hundred bucks. (try Vanguard) There are thousands of people just like you that are, or were looking to invest and those that did buy Mutual Funds. One purpose of mutual funds is to help investors like you, who are either just entering the investment world or who have no experience investing. Fund companies have an entire array of products many will fit your needs. You can go to the MSN.Money website it has an entire section on mutual funds. Read about the various funds and in doing so you will be getting investment ideas and at the same time educating yourself about investing. You could also contact the funds companies for more information. I have found that Vanguard & Fidelity can meet your needs. The service and information they provide is all free and you will find it helpful. Don't let people talk you into trading, you have to learn what things are all about first. Don't let anyone talk you out of investing. And remember, keeping you money in a bank or bank product is not investing. Good luck on your journey
- Vanguard has a fund for beginning investors called the Star fund requiring only a minimum $1,000 investment. The Vanguard Star Fund (VGSTX) is a balanced fund of funds, a ready-made portfolio of 11 mutual funds. It's expense ratio is a very reasonable .32% https://personal.vanguard.com/us/FundsSnapshot?FundId=0056&FundIntExt=INT Good Luck!
