Lux Investing - Do low income individuals invest in the financial markets?

Do low income individuals invest in the financial markets?

Do low income individuals or those who are in the lowest tax brackets (those making less than $30,000 a year) invest in financial markets such as stocks and bonds? What is the minimum amount individuals are making a year before they actually do invest, if $30k a year is too low? Thanks

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You can open an online account with $1000
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Most investment companies, such as Scott trade, Fidelity Investments, Charles Schwab, etc. require a minimum investment of 2K (2 thousand $). It's very risky these days and if your income is less than 30K, it's probably not a good idea. You can lose it all in one day easily. Actually an hour or less. My husband and I had 350K in investments about 6 mos. ago and have only 140K to 150K each day. The stock market is very volatile these days. It's really scarrry! If you have any money to invest, your best bet is to put it into a CD (Cash Deposit) at your local bank. While the interest rate is not high, it's safe and you can't lose your money. You just need to leave it alone and not try to cash it in. It will at least collect interest and be worth more when you cash it in. Talk to your bank and find out the minimum CD you can purchase and what term . Like 2 yrs. or 5 yrs. etc. The longer the term (duration) of the CD, the more your return will be (money at end of your term). DON'T TRY TO PLAY THE STOCK MARKET NOW! The big boys with big bucks like millions or billions of dollars to play with can manipulate the market just by buying and selling on pennies of price change. You wouldn't have a chance even if you invested a year's income. Hope this helps.
any one can invest (say can trade). there is no minimum guarantee in the business. there can be loss as well as gain - depends on the ability of the investor.
If you are just starting to invest you should consider mutual funds. You can open an account with a monthly dank draft for as little as $50 per month. The good thing about mutual funds is that even a small investor gets the advantage of a professional money manager with team or researchers and analyst. If you start buying individual stocks it's more like gambling than investing. Check out the American Funds. http://www.americanfunds.com/default-home.htm
Income is not a criteria for investing or starting to invest, this does not mean you go into hock to play the market. You can open an account, with a brokerage firm or mutual fund company for as low as $500.00. You can always start investing by using or investing in mutual funds, then moving to Exchange Traded Funds 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 have an entire array of products many will fit your needs. You can go to the MSN MONEY website http://moneycentral.msn.com/home.asp it has an entire section on mutual funds and Exchange Traded Funds. Read about the various products 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 for mutual funds. The service and information they provide is all free and you will find it helpful. During your working career, you pay your bills, and then try to save, this is not always the correct approach, you should develope a plan so that you pay yourself first, then pay your bills. You pay yourself by making small monthly payments into your investing account Try it you'll like and you'll be surprise what investing can do. Don't let any one tell you not to invest, especially anyone who is not investing themselves, Good luck, and go for it .
i make less than 30 grand per year, that doesnt mean that I cant invest. It just means that when i invest I have to be smart about the desicions that I make. When you invest you have to keep in mind that you could only invest what you are willing to lose. I made some risky decisions but have got me to make alot of money off the stock market. The way i see it, penny stocks is the way to go if you want to make huge profits right away, you dont even have to spend over 100 dollars and can become a millionaire.