How do I buy stocks seperate from my 401k?

Answer 1

Through a stock broker, either over the phone, visiting the broker or doing it online.

Answer 2

The best thing to do after you contribute to a 401k (assuming you already have some cash savings for emergencies) is to invest extra money in a low cost index fund. There are several reasons this is a better idea than trading individual stocks:

1. If you purchase shares in a US stock market index fund, you are buying EVERY stock in America. An international index buys you EVERY international stock. That way you are really diversified.

2. If you only have a few thousand dollars to invest in one stock, that stock will have to go up several percentage points in order for you to even make enough money to cover commissions. You don't have to pay commissions to buy or sell the shares in an index fund or mutual fund.

3. Index funds perform better than most mutual funds and have lower fees. Professional stock pickers rarely outperform index funds and almost never do on a long term basis. You probably will not be able to either.

Good luck!

Answer 3

What gregory said, plus some companies with dividend reinvestment plans allow you to buy the first shares directly through them. Check the web site of the company you want to buy and get the phone number for investor relations office and call.