crownroyal1980 Posted August 24, 2018 Share Posted August 24, 2018 I’m new to investing but also don’t make a lot of money but I want to get into investing so with that said.....I have to start somewhere. I started investing in stash as in a week ago. Once I have enough money in my portfolio I plan on buying two full shares. My question is this. Are fractional shares worth it? Would I make more on my returns buying 2 full share(apple)vs multiple fractional shares? How much of a difference? Link to comment
abitbroken Posted August 24, 2018 Share Posted August 24, 2018 If you don't make a lot of money, I would first clear all of your debt -- any credit cards, anyone you owe money to. Because any investment right now, unless you really hit the jackpot is going to completely be wiped out - any small gain will be negated by the interest you are paying and any monthly payments you make. I mean - if you invest $100 and make a dividend of $2, but are paying $34 in credit card interest, it doesn't amount to a hill of beans. When you clear that out - i recommend investing in yourself -- certificate programs, etc to increase your income. But if you really want to invest - i started with a balanced mutual fund that someone managed that included a company or two I cared about. when you can afford to risk, pick individual companies. I started out a long time ago with just $25 a month drafted from my checking account or check Link to comment
mustlovedogs Posted August 24, 2018 Share Posted August 24, 2018 How many shares you own is irrelevant. If the stock goes up 10%, you get 10% on your original value. Don’t target a certain # of shares but rather a total amount you want to invest. I’m a fan of stocks that have some kind of dividend but also grow. If I were you, I’d read up on exchange traded funds (ETFs). They let you diversify your portfolio without having to buy a bunch of individual companies. One ETF is inherently diversified. Link to comment
Hollyj Posted August 24, 2018 Share Posted August 24, 2018 Start with an ETF or mutual fund. The S & P 500 has a lot of diversification, which makes it safer. Look into to Vanguard for some of the lowest fees. Don't be a stock picker. It's a good way to lose your money. I also suggest you take some classes. Link to comment
DanZee Posted August 24, 2018 Share Posted August 24, 2018 Well, I think the best kind of investment is in your employer's retirement account. You should have your employer take out the full amount allowed each week or each month. That money comes out pre-tax and grows tax free, so more money goes in and it grows faster. There's usually no minimum you can invest. When you leave the company, you transfer the amount to an IRA that you then control for your retirement. $1000 invested today could be as much as $30,000 when you retire. I'm guessing the STASH account charges you $1 a month fee. Instead, you should just put your extra money in a savings account and when you have $100, you can open a Schwab account and invest it in the Schwab S&P 500 Index (SWPPX). Then your money will grow along with the stock market. In the last 4 years, your money would have increased 33%. Not bad. Anyways, regarding your question about fractional shares, there's no difference. If the stock goes up 10%, your investment goes up 10% (minus the monthly fee). The stock market trades in 100-share blocks, so anything less is really a fractional share. With Apple, you would have doubled your value in the last 2 years. Link to comment
Hollyj Posted August 24, 2018 Share Posted August 24, 2018 If you get an IRA, go with a Roth IRA. Link to comment
Starlight925 Posted August 24, 2018 Share Posted August 24, 2018 Instead, you should just put your extra money in a savings account and when you have $100, you can open a Schwab account and invest it in the Schwab S&P 500 Index (SWPPX). Then your money will grow along with the stock market. In the last 4 years, your money would have increased 33%. Not bad. ^^This is what I recommend. First, pay of any debt, and then open a brokerage account. There are a lot of brokerage houses out there....Schwab, Vanguard, Fidelity, Dreyfus, etc......you do your research on fees, etc. I listen to a Sirius radio show about investing, where they talk a lot about learnvest.com, something to look into. Link to comment
Hollyj Posted August 24, 2018 Share Posted August 24, 2018 Investopedia is your friend. https://www.investopedia.com/ask/answers/042415/what-average-annual-return-sp-500.asp Link to comment
crownroyal1980 Posted August 25, 2018 Author Share Posted August 25, 2018 Well, I think the best kind of investment is in your employer's retirement account. You should have your employer take out the full amount allowed each week or each month. That money comes out pre-tax and grows tax free, so more money goes in and it grows faster. There's usually no minimum you can invest. When you leave the company, you transfer the amount to an IRA that you then control for your retirement. $1000 invested today could be as much as $30,000 when you retire. I'm guessing the STASH account charges you $1 a month fee. Instead, you should just put your extra money in a savings account and when you have $100, you can open a Schwab account and invest it in the Schwab S&P 500 Index (SWPPX). Then your money will grow along with the stock market. In the last 4 years, your money would have increased 33%. Not bad. Anyways, regarding your question about fractional shares, there's no difference. If the stock goes up 10%, your investment goes up 10% (minus the monthly fee). The stock market trades in 100-share blocks, so anything less is really a fractional share. With Apple, you would have doubled your value in the last 2 years. I ended up opening a Schwab one account with banking, man do I love it. Learning so much. I haven’t invested yet waiting on the account to fully open, it’s only half completed I was told the banking part takes the longest normally 5 business days Link to comment
crownroyal1980 Posted August 25, 2018 Author Share Posted August 25, 2018 If you get an IRA, go with a Roth IRA. Noted..... I read into it Link to comment
crownroyal1980 Posted August 29, 2018 Author Share Posted August 29, 2018 Didn’t know you had to have good credit for a Charles Schwab acct. which is fine and dandy because I open up a fidelity account and was approved I transferred $1500 into mutral funds and already made over $100 Link to comment
mustlovedogs Posted August 29, 2018 Share Posted August 29, 2018 One thing to note - You haven’t made any money You only make money when you sell stocks and the cash hits your account. Until then, your investments are up, but they can still go down. Link to comment
Starlight925 Posted August 29, 2018 Share Posted August 29, 2018 Didn’t know you had to have good credit for a Charles Schwab acct. which is fine and dandy because I open up a fidelity account and was approved I transferred $1500 into mutral funds and already made over $100 Yay, good for you! Yes, it's so much fun to watch your money! The market has had a great couple of days, so if you're in a mutual fund, you're mirroring the market right now. I keep the market indexes (indices?) on my phone and I check them all day long. The stock market goes up, down, etc., but 100 years of history has proven that ultimately, it's up. Just don't worry when.....not if, but when....there's a correction, meaning it will go down. History shows, it will go back up. Keep your money in there, and add to it when you can. You'll be happy in the long run. Link to comment
troo2 Posted September 1, 2018 Share Posted September 1, 2018 Read the book Unshakeable by Tony Robbins. It will help out a TON. Look into index funds.... Link to comment
ShatteredMan Posted September 6, 2018 Share Posted September 6, 2018 1. Pay off any debt (credit cards, loans) as quickly as possible while researching investing (as previously mentioned) tactics. 2. Open a Roth IRA and plan to make the maximum contribution every year (something I'm glad I've been doing for over 20 years) until you make more money than the govt allows in order to make said investment. Lowers your taxable income. Never take any money out until you retire! This is treated as income and you will pay a penalty to the government and your portfolio in terms of growth. If you have a stint of unemployment, resist the temptation to use this to support yourself as long as possible. 3. Take advantage of any 401k options your employer allows and put in at least what your employer matches. I highly recommend putting in as much as you can afford as soon as you can. It will also lower your taxable income. 4. I like DanZee's suggestion about an index fund as a next step. Index funds are about the safest thing out there on the market in terms of risk. Link to comment
mustlovedogs Posted September 6, 2018 Share Posted September 6, 2018 1. Pay off any debt (credit cards, loans) as quickly as possible while researching investing (as previously mentioned) tactics. 2. Open a Roth IRA and plan to make the maximum contribution every year (something I'm glad I've been doing for over 20 years) until you make more money than the govt allows in order to make said investment. Lowers your taxable income. Never take any money out until you retire! This is treated as income and you will pay a penalty to the government and your portfolio in terms of growth. If you have a stint of unemployment, resist the temptation to use this to support yourself as long as possible. 3. Take advantage of any 401k options your employer allows and put in at least what your employer matches. I highly recommend putting in as much as you can afford as soon as you can. It will also lower your taxable income. 4. I like DanZee's suggestion about an index fund as a next step. Index funds are about the safest thing out there on the market in terms of risk. No, a Roth IRA does NOT lower your taxable income. A traditional does. Link to comment
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