2006-09-03 04:49:53 · 9 answers · asked by paintedaisys3 1 in Business & Finance ➔ Investing
you have several opportunities available to you. The most common is mutual funds. After you make an initial investment almost all will allow you to make periodic investments of $50.00. One of the advantages of making say a monthly investment of $50.00 is that when stock prices are low, you purchase more shares than when stock prices are high and you average cost per share results in being advantageous.
One family of funds that has a decent record and a low minimun investment is American Funds. This family has a front end load of 5.75%, but that is offset by their low expenses and within 5 years, the front end load will be offset. And they have an excellent reputation. Many of the no load funds require a higher minimum and subsequent investments.
For example Fidelity Funds which are no load funds has a minimum initial investment of $2500 and subsequent investments of $250 for their funds. The expense ratio of these funds are about 50% higher than for American Funds.
2006-09-03 05:33:22 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Cool has an excellent point. If your employer has a match program for their 401K, it could be winner, but its investment vehicle must perform well too, or over the long run it wont help much.
Another group PAXWORLD Funds, has NO front or rear charges, has as low as $50 per quarter automatic deduct from your bank account and either a Roth or Regular IRA. You can Search Engine them using PAXWORLD as your key. They have no charges, but will charge you $15.00 a yr for IRA admin. They have a good investment record, and have Online and Telephone switches thru their Money Market, Income, Growth and Balanced Stock funds.
As far as I have been able to find for people I work with, this has been the handiest, best way to go.
If you have a mind to select your own stocks, or want a free IRA, you can use Scottrade, and Scottrade will allow you a free transaction for a no-load Mutual Fund like any in PAXWORLD's group, so if you can save up $500 for the online minium [there is no minimum at Scottrade for off-line trading], you can do a no-fee IRA in a no-load mutual fund. This is a bit more work than the others, but its a good way to force yourself to get educated.
Good Luck
2006-09-03 15:08:39 · answer #2 · answered by denaliguide2 3 · 0⤊ 0⤋
You could do both or you could also by single stock. Large companies, like Proctor and Gamble, Coke, and McDonald's, and many more, allow you to send a monthly amount to purchase their stock.
You're place of employment should offer you the 401. If not, go to your bank and they will help you. As well, you purchase your CD's at the bank. Finally, to buy stock directly contact the companies you are interested in buying by doing a web search. Most companies will have down loadable forms or contact information.
2006-09-03 11:58:31 · answer #3 · answered by Steve N 3 · 0⤊ 0⤋
I have a Roth IRA through Horace Mann Insurance. You can pick how you want the money invested and do it all online. It is easy. Good luck!
2006-09-03 11:51:42 · answer #4 · answered by applebetty34 4 · 0⤊ 0⤋
If your company has a match 401K is best if not Roth IRA.
2006-09-03 13:06:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Read some investing tips and more on this site to help you with it
2006-09-03 11:51:34 · answer #6 · answered by Anonymous · 0⤊ 0⤋
$50 dollars month is really not allot of money. If you have bills or credit debt, I suggest you pay that off first.
2006-09-03 12:17:25 · answer #7 · answered by Grandpa Shark 7 · 1⤊ 0⤋
Here are some links that addres that exact question:
http://www.mymoneyblog.com/archives/2006/06/only_have_50_a.html
http://www.fool.com/foolu/askfoolu/2001/askfoolu010314.htm
http://www.blackwomenshealth.com/start_investing.htm
2006-09-03 11:57:36 · answer #8 · answered by Anonymous · 0⤊ 0⤋
TD Ameritrade. (Try ETFs or Mutual Funds)
2006-09-03 16:53:34 · answer #9 · answered by Anonymous · 0⤊ 1⤋