Looking to invest small $

daneyb · December 2, 2005

I'm looking to invest some small money, something like $100 a month. I have an ING account that is getting a large sum of my paycheck to save for a house, but in January, I'm looking to start putting $100/mo towards something. I know it's not a lot, but it's still something for now.

I read an article on MSN about Sharebuilder.com Has anyone ever used them before. Here is the article on MSN http://moneycentral.msn.com/content/Invest...ing/P117785.asp

I was also thinking about mutual funds through TROWEPRICE?

Also, I know NOTHING about investing. The article in MSN basically laid everything out pretty simple, but I don't know if it's too complicated for me or not, or if I should just go with TROWEPRICE since I'm going to opening up an IRA there too.

THANKS!

Danielle

Riskyfool · December 2, 2005

I see absolutely nothing wrong with just banking that money in a savings account - even a low interest one. Let it build up while you spend your time learning more about investing. After two years you will have a bit of cash to start with. In the meantime, it also serves as an emergency for you.

Amaysing1 · December 2, 2005

Hey! Thanks for the link. I am reading up on it now. I am trying to figure out how to invest 5K

daneyb · December 2, 2005

Anyone else???

54regcab · December 3, 2005

Opening a ROTH IRA through Trowe price is an EXCELLENT idea. Check out the PRWCX fund, excellent moderate risk fund with good returns TREMX is good if you want a high risk/return fund. BTW I own both of these

4.4k · December 3, 2005

Did you just jump into TREMX??? Or have you had it since beginning 03?? If the latter, lucky you!!

wbob · December 3, 2005

I would suggest the best thing to do is to minimize the costs of your investing. The funds that one writer mentioned, while being good because they have no sales charges, do have relatively high costs that you will pay year after year. When you consider that each year, 85% of actively managed funds fail to meet the performance of the market as a whole, it makes a lot of sense to "buy the whole market" through a low-cost index fund. That is, of course, if your investment horizon is long, and you have the ability to tolerate swings in the value of your shares.

The MSN article author suggested purchasing exchange-traded funds. I don't suggest that, as each transaction will incur a commission. Even if it's only a few dollars, you want to minimize the costs of investing. You should be able to purchase shares in a mutual fund each month at no cost. It is true, though, that most funds have a minimum amount required to open the account, maybe $1,000 or so, but after that the minimum purchase requirement should be small.

54regcab · December 3, 2005

Did you just jump into TREMX??? Or have you had it since beginning 03?? If the latter, lucky you!!

<{POST_SNAPBACK}>

I just got in this year but I've made $550 on my $4,000 within a few months

Clarkfan2 · December 5, 2005

I like a roth accout with Scottrade. Mainly because of the lack of fees. There are many fund families to choose from....but I like ETF's. Can't do research for you but internation stocks have performed well as of late.

Clark

stevenwe · December 5, 2005

ive used sharebuilder for the past few years , their great , they have alot of different investing options with the most expensive being only $12 a month !!!

lbjones · December 10, 2005

ive used sharebuilder for the past few years , their great , they have alot of different investing options with the most expensive being only $12 a month !!!

<{POST_SNAPBACK}>

See... I had the opposite opinion on Sharebuilder. Have also had it for a while, but haven't touched in in forever. It seems like a waste to put in small amounts money, so I decided I was better off putting my contribution in ING. When I get a nice lump sum saved up, then I'll move it somewhere.

Clarkfan2 · December 11, 2005

Scottrade $7 to buy, $7.00 to sell...doesn't get more simple or much cheaper than that for the small investor.

stevenwe · December 11, 2005

ive used sharebuilder for the past few years , their great , they have alot of different investing options with the most expensive being only $12 a month !!!

<{POST_SNAPBACK}>

See... I had the opposite opinion on Sharebuilder. Have also had it for a while, but haven't touched in in forever. It seems like a waste to put in small amounts money, so I decided I was better off putting my contribution in ING. When I get a nice lump sum saved up, then I'll move it somewhere.

<{POST_SNAPBACK}>

i use it in place of a mutual fund .... I only buy stocks that i plan on holding long term......and i send them whatever i can afford at the end of the month...sometimes $200....somestimes $1500

I dont like to do tremendous amounts of research, but i like to buy a few good stocks that are already established and that i think theyll be going up for a significant amount of time ......

stevenwe · December 11, 2005

Scottrade $7 to buy, $7.00 to sell...doesn't get more simple or much cheaper than that for the small investor.

<{POST_SNAPBACK}>

i can buy 15 different stocks.....and it only costs me $12 a month ....although if i want to sell i think its $15 per sale

lbjones · December 11, 2005

The OP is talking about something like $100 a month. Do the math, figure out AFTER the monthly fee or commission, what return are you getting on an investment of that size?

I still vote sock the small amount over to ING, then once you have saved up a lump, make your investment. JMHO.

ETA: Sharebuilder has a basic plan where you pay something like $4 per automatic investment. You could set it up so you put $100 a month toward a particular stock, and pay the one time fee for each investment.

Edited December 11, 2005 by lbjones

stevenwe · December 11, 2005

my mistake...i didnt realize the OP was only referring to $100.....my fault....I agree , I would put it in ING or emigrantdirect.com ...

Clarkfan2 · December 12, 2005

I personally wouldn't buy less that $500.00 per lot (in Re: to Scottrade)...so saving in an ING account is ok. If you want to invest in mutual funds, USAA's cornerstone fund is a good safe one to dollar cost average into. It has not fees and a low $20.00 per month to auto invest. It's hard to beat free and the returns will be better than a savings account.

"i can buy 15 different stocks.....and it only costs me $12 a month ....although if i want to sell i think its $15 per sale "

Sharebuilder gets you on the sell side!! They also used to charge yearly fees as well.

"

sabbath999 · December 12, 2005

Opening a ROTH IRA through Trowe price is an EXCELLENT idea. Check out the PRWCX fund, excellent moderate risk fund with good returns TREMX is good if you want a high risk/return fund. BTW I own both of these

<{POST_SNAPBACK}>

I am a huge fan of PRWCX .

But watch out if you use it for large amounts of cash not in an Roth because it is not tax friendly (high turnover).

Clarkfan2 · December 12, 2005

Hey sabbath long time no see....clean out your personal message box here so I can PM you some time. Hope all is well with you and yours...

sabbath999 · December 12, 2005

The PM is not turned on in my account for some reason.

800SomeDay · December 15, 2005

The PM is not turned on in my account for some reason.

<{POST_SNAPBACK}>

Have to be a member first not a newbie, I think you need 60 posts or so.

SURFJ9009 · December 15, 2005

Fidelity has excellent mutual funds with no front load.

Edited December 15, 2005 by SURFJ9009

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