Low-cost investing.Q I am engaged to be married, and we want to invest in stocks. Is there any way that we can start with a small amount of funds, say $25? --Lavita Durant Durant, city (1990 pop. 12,823), seat of Bryan co., S central Okla., in the Red River valley farm area; inc. 1873. It is the commercial and processing center for an agricultural region where peanuts, cotton, wheat, and oil are produced and cattle are raised. , blackenterprise.com A This is a question that we have been often asked. As part of our Black Wealth Initiative, we have been encouraging couples like you to get started now. First, one of the easiest ways to get started investing is through your employer's 401(k) plan or other company-sponsored retirement plan. You can have the money deducted de·duct v. de·duct·ed, de·duct·ing, de·ducts v.tr. 1. To take away (a quantity) from another; subtract. 2. To derive by deduction; deduce. v.intr. from your paycheck and have it grow tax-deferred by investing in a range of mutual funds or stocks. Employers usually match some portion of the dollars that you have contributed to the fund. (Your maximum allowable contribution on an annual basis: $10,500.) Another means of investing is through a process called dollar cost averaging, in which you set aside a certain amount per month, like the $25 you mentioned, and invest in mutual funds or individual stocks. To invest in equities, you will have to do so through a direct stock purchase plan in which you can buy fractional shares Fractional share Stocks amounting to less than one full share, usually resulting from splits, acquisitions, exchanges, or dividend reinvestment programs. fractional share Less than one share of stock, that is, one-third or one-half a share. in a company without going through a broker. You can also buy stocks on the cheap through dividend reinvestment plans Dividend Reinvestment Plan (DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. (DRIPs) but you will first have to buy shares of a given company through your broker. You may want to visit the Direct Stock Purchase Center at www.blackenterprise.com, where you may find out information on such programs. The site offers investors the opportunity to purchase shares in as many as 1,600 stocks. Mail your finance questions to Ask B.E., BLACK ENTERPRISE, 130 Fifth Ave AVE Avenue AVE Average AVE Alta Velocidad Espanola (train between Madrid and Seville) AVE Alta Velocidad Española (Spanish: High Speed Train) AVE Audio Video Entertainment AVE Advertising Value Equivalent ., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011, or send an e-mail to dingled@blackenterprise.com. |
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