Best Place to invest $50 per week?

Question

I have a savings account but would like to invest around $50 a week in another vehicle. Most investment firms will not even talk to you unless you have $1,000 to $5,000 to start. Where can I invest my $50 and really watch it grow?

Answer 1

You are talking of $50 a week? Meaning $200 a month? That is good enough. Most mutual fund companies including Vanguard, Fidelity and Troweprice will waive minimum requirement of $1000-$2500 if you enrol in monthly investment plan.

That means you can open the account with $0 and establish a monthly investment of atleast $50 a month. You have $200 a month, so you are good enough.

But remember there might be some funds where they will not waive minimum. Eg, in case of Fidelity, even if you commit for monthly investment plan, you still need a minimum of $10,000 to put money in an index fund.

Your best bet will be to pick a low fee index fund from a good company. Since you do not have $10,000 initial investment, you should go with Vanguard S&P500 fund. Call them, open the account. You need no money to open the account. Give them your checking/savings account number from where you want $200 to go monthly. And that’s it.

But you should start now. My experience says, if you do not open the account this month, your $200 will be spend somewhere. So, open it early and see your money grow!! Compouding does miracles!

Answer 2

Let your $50 accumulate each month. At the end of the month, buy as many shares of an S&P 500 Index Fund as you can.

From the standpoint of maximizing diversification and hitting the highest point on the risk-reward curve, this fund is the market and is the best. And, you need not worry about a particular industry, so it's low stress.

If you ever want to raise the stakes, you can use margin to ramp up your position. In finance theory, you cannot do better on risk-return than the S&P 500 Index Fund, commonly called a "spider" and traded often as "SPX".

Good luck.

Answer 3

You can check out companies like American Funds, Ameriprice, Hartford Securities, Accessor Funds. I know American Funds either requires you to put down an initial 500$ opening or to set up automatic contributions in the amount of at least $50/month. Several of American Funds' mutual funds are returning in the 10-20% range. I would also suggest that you check out a local bank to see what IRA options they have. It is convenient to have someone in person that you can talk with because if they are good at their job they will want to analyze your personal situation and find out what is best for you.

Answer 4

I would just deposit it in a high yield savings account until you have a $1000 dollars- this will only be 5 months for you to wait

try emigrantdirect.com, INGdirect.com, capitalonesavings.com(4-5% interest)

- I would consider moving your other savings there if it is in a traditional bricks and mortar bank(has a building you visit)

Answer 5

You can contact several mutual fund companies that will allow you to make periodic investments (I think T.Rowe Price has several) - great way to participate in the market without spending a lot of money!

Answer 6

Check out Sharebuilder - www.sharebuilder.com
You can invest weekly and they don't require a minimum opening balance. Check out their pricing schedule. For $12 a month you can place six trades for free in their automatic investment plan.

Answer 7

Build up enough money to start in a mutual fund...most need $1000-2500 to start...then after that, you can put $100 deposits into it on a regular basis.

Answer 8

without a doubt, Roth IRA. 200 a month will max you out for the year and it is all Tax free when you retire. this is if you make less than 100k a year.

Answer 9

online savings account that gives you 5% APY :P

Answer 10

SogoInvest.