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Consider Community College or Online College For Your First Year or Two - If you are finding you need the education but don't have the funds, or want to take...

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Investing With $1000 Or Less

Over the last year, I've been following up on e-mails that I have received from young and beginning investors and, by far, the most common question I've received is, "I don't have very much money but I'm interested in getting started in the stock market. How do I do this?" In fact, if I had a dollar for every time I received that question I'd be a millionaire. Okay, that's a little exaggeration on my part but it does show that most beginning investors are people who have set aside a little money and would like to see that grow faster than it would in a savings account or CD.Many people wonder if it's even possible to invest just a little money and it definitely is. You hear stories about these millionaire investment moguls all the time but it doesn't mean you have to have that much money to invest. A thousand dollars is usually a good number to start with but you can start with less. I doubt it'll make you the next Warren Buffett but even he wasn't born a billionaire.

There are two approaches to investing $1000 or less: the mutual fund route or the stock route.Investing In Mutual FundsThe first step to investing in mutual funds is to research and find a mutual fund that suits your interests. It also has to have a minimum investment which you can afford. Most mutual funds have $2500 minimum investments for regular accounts but some funds let you start with $1000 or less like Invesco funds ($1000) or the Pax World Fund ($250).

The next step is to decide what kind of account you want to open up. The options usually include custodial, joint, IRA, and regular accounts. Custodial accounts are what you would open up if you are a kid and want to invest or if you are a parent who wants to open up an account for their child. You might consider a joint account if you want the account in both you and your spouse's name. Individual Retirement Accounts (IRA's) are excellent ways to save for retirement with tax benefits but you should only open up one of these if you plan on using the money for retirement. Regular accounts are the standard type of account.Once you have decided what fund you want to invest in and what type of account you want to open, all you have to do is fill out the forms and mail them in and relax as your money grows. Since your money is managed by professionals, you probably won't have to worry about it as much if the market takes a little dip. You can also check how your mutual fund is doing online by entering in its ticker symbol.Investing in StocksIf you feel you have a good understanding of the stock market and want to pick your own stocks, there are a couple ways to go about doing it. You can either invest in them by buying DSP's or by opening a low-cost online investing account. A Direct Stock Plan (DSP) allows you to invest in a stock with very little commission. They're good for people who have little money but I don't recommend them for someone who doesn't plan to own the stock for at least a year. The reason is because you have to fill out the paperwork for each stock you buy and they are slightly less liquid than a regular stock is.The alternative to a DSP is finding a low-cost online investing account. Finding a low cost online broker is very important when you don't have a lot of money to invest because higher commissions can eat away at your savings. Some online brokers that allow you to start with $1000 or less and have cheap commissions are Scottrade, Ameritrade, and Sharebuilder.Once you've found the broker and have filled out the necessary forms, you'll be able to invest online. But before you make that first trade, you have to research some stocks and decide which one you want to buy. I personally recommend you invest in companies you know about rather than some strange company that you had never heard of before. Once you've picked the stock, just enter the trade and it should be promptly executed.Whether you decide to invest in a mutual fund or in individual stocks, the odds are in your favor that, over a period of time, you will earn a positive return greater than the traditional savings account or CD. If you keep at it, maybe you'll retire with a few million dollars and a large beach house. If that's a case, give me a call.

 

Discuss It!
1 2 >

Jay said:

thanks you are beautiful jodi

paul said:

i dont get it jodi

Spand said:

Ohhhhhhhhhhhhh

lockedgarden said:

thanks, this was really helpful!

Jig said:

Thanks, seems like very helpful but want to try and see the result. You will get 2% out of my profit :)

ASI report said:

Thanks for useful information I put my article on my blog it about invest with less money at http://asireport.blogspot.com

mcfaggle said:

This is good advice

blasterbug said:

this is boring

Matteo said:

What the best company to invest with?

Behrouz said:

I have invested in this website and they paid me ontime till now ( more than 7 months ) : https://skn-fund.com/?ref=behrouz daily interest + monthly interest . for more than $2000 investment : money back guarantee

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Mike Hawk said:

What the fuck did you just fucking say about me, you little bitch? I’ll have you know I graduated top of my class in the Navy Seals, and I’ve been involved in numerous secret raids on Al-Quaeda, and I have over 300 confirmed kills. I am trained in gorilla warfare and I’m the top sniper in the entire US armed forces. You are nothing to me but just another target. I will wipe you the fuck out with precision the likes of which has never been seen before on this Earth, mark my fucking words. You think you can get away with saying that shit to me over the Internet? Think again, fucker. As we speak I am contacting my secret network of spies across the USA and your IP is being traced right now so you better prepare for the storm, maggot. The storm that wipes out the pathetic little thing you call your life. You’re fucking dead, kid. I can be anywhere, anytime, and I can kill you in over seven hundred ways, and that’s just with my bare hands. Not only am I extensively trained in unarmed combat, but I have access to the entire arsenal of the United States Marine Corps and I will use it to its full extent to wipe your miserable ass off the face of the continent, you little shit. If only you could have known what unholy retribution your little “clever” comment was about to bring down upon you, maybe you would have held your fucking tongue. But you couldn’t, you didn’t, and now you’re paying the price, you goddamn idiot. I will shit fury all over you and you will drown in it. You’re fucking dead, kiddo.

kosta said:

my teacher made me read this

rj said:

im hella gay

mr. vought said:

yes, rj you are very gay indeed

Erik Stove said:

I am in government right now

Erik Stove (the fence humper) said:

i am also humping a fence right now

Zach Boulom said:

Can I join?

Mr. Vought said:

shut up erik

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