I would like to start investing in stocks. I only have about 0.00 a month to play with. Does anyone have any good, fairly safe suggestions? Thanks very much. Appreciate your time.
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I am 41 years old and I'm in the performing arts. I make a very low income but would like to start investing
Mary Ann V 2:48 pm on November 25, 2009 Permalink
You should consider a DRIP Plan. It sounds like your situation is perfect for starting one.
They are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.
The best part is you get solid annual returns from well-known, safe Blue Chip companies like: McDonalds, General Electric, Pfizer, Walmart, US Bancorp…….etc……..
They are inexpensive to start and maintain, and your dividends are reinvested for free.
They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down.
Good Luck
Shelly 2:48 pm on November 25, 2009 Permalink
"MakeBank" the other respondent who felt the need to ridicule another persons advice, most likely has an ulterior motive.
I would suggest looking at all advice and make a decision from there. And if another individual is ridiculing someone elses answer, then it is likely they have ulterior motives.
I hope this helps.
About 75% of all mutual funds under perform the market. All of them have management fees, and some have sales loads.
I own one mutual fund, but I researched it thoroughly. There is no sense in paying a management fee if the fund isn’t going to out perform the market.
ETF’s are much better than mutual funds, in my opinion. They are basically the same thing, but with lower overall management fees. Plus, they are much more liquid than mutual funds.
It is my opinion, that you have mutual fund salesmen on these forums trying to push people to their sites. They leave links to specific mutual fund families.
And by the way, DRIP’s are very solid investments. I have one and I know other investors who have them, and 100% of them are very pleased with the results.
Please do not take my word for anything. Do your own research and be very wary of those individuals who feel the need to criticize other peoples responses.
Good Luck
Donald B 2:48 pm on November 25, 2009 Permalink
Loomis Sayles LSBRX
Maximum Redemption Fee 2.00%
Total Expense Ratio0.97%
** You have a expense ratio of .97% and a possible Redemption fee of 2%.
* Too many fees for my personal taste
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Permanent Portfolio PRPFX
Net Expense Ratio: Annual Report 1.11%
An impressive track record. However, for me personally, When the management fees start getting above 1% I start looking elsewhere. That is just me.
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I will give you a mutual fund that also has an impressive track record:
Fairholme Fund (FAIRX)
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I am not sure why the gentleman who recommended the 2 mutual funds felt the need to belittle someone else’s recommendation, but there is wisdom in both suggestions.
I would invest in one of the two mutual funds he recommended. However, I went to the site he provided, and it has a $2500 minimum investment, unless you agree to a monthly purchase.
ETF’s have much lower expense ratio’s and there are now over 650 of them to choose from.
And DRIP Plans are great for small investors. I am not sure what his beef is here. You can start a DRIP Plan with as little as one share. And you can continually add shares at $4 per purchase if you use ING. You can buy the best Blue Chip companies in the USA.
I hope this helps. Look at all recommendations closely. Some individuals on these sites may be financial salesmen.
Good Luck
Knox 2:48 pm on November 25, 2009 Permalink
I personally just like to post my advice and then leave. But I read the comments of "MadeBank" and thought I would leave this link for you. This will give you good insight into the world of mutual funds.
http://www.johnchow.com/the-mutual-fund-scam/
I am not foolish enough to insinuate that all mutual funds are bad investments, that is not true, but it appears abot 75% of them are bad investments.
And what is wrong with cutting and pasting. My goodness, I am fairly new to the forums, and I have already cut and pasted an answer to specific questions that come up. It is likely people just get tired of typing.
You have about $100 dollars per month to invest. You can put it into a savings account and earn arounf 4% , and that is a high rate offered by some online companies like ETrade or Scottrade.
CD’s are also paying around 4%.
I seldom consider mutual funds anymore, but maybe you might want to. ETF’s are the same thing with lower fees.
And it does sound to me, that a DRIP Plan is pretty much in line with what you are describing. The only people I have ever met who dislkie DRIP Plans are Financial Advisors and mutual fund salesmen.
Look at all suggestions closely and make a decision that you are comfortable with.