Questions About How To Invest In Stocks And Bonds

Sandra asks…

How do you get into investing in stocks and bonds? What is the minimum to invest?

I'm thinking about investing in stocks and bonds but I don't know the first step to take in investing in one. Do I go through a broker? How do I find one? How do I find one that won't jip me out of money?

admin answers:

In today's world the easiest way is on-line. E-trade being one of the on-line traders they are cheap and do not require a large minimum. Different stocks and bonds have different requirements for purchasing. For stocks 100 shares is a typical minimum. For Bonds I believe you might still find some for 1000 dollars. But there are always exceptions and you can still buy 1 share of some stocks.

Before you start understand trading is legalized gambling and though it is monitored there is still corruption. Only invest what you can lose. Always pay off your debt first.

For information on Trading. The local library is always a good source. There are also several Magazines and Newspapers always willing to give you pointers and their view of how you should invest.

Best strategies invest for the long term consistent gain.

Paul asks…

How do you invest in stocks and bonds?

Is there a minimum deposit to invest? How do you know which ones to buy? Only helpful advice please! Thanks in advance! O, Happy New Year!!!

admin answers:

For stocks there is no minimum deposit to invest. If there is a stock trading for under a penny, than you can buy several hundred for one dollar. Bonds, some US treasury notes sell for 25 dollars. Mutual funds have minimum deposits, some 250 others over 2500 dollars. Buy securities that offer a good potential for growth. There is no security with no risk, but ones that are safer than others.

Lizzie asks…

i want to invest in stocks/bonds/mutual funds but i know you have to have alot of money to go to a broker.help?

how can i invest with only 200-300 a month? and how can i learn how invest in the right things?
please help=(

admin answers:

You don't really need a lot of money to go to a discount broker like E*Trade, Scottrade, TDAmeritrade, etc. They'd probably let you open an account with $2000 or maybe even less.

Personally, I don't think a broker is the right place though for anyone with less than about $50,000. Putting everything into one or two stocks can be very risky because if something bad happens to that company, you can lose a large chunk of your money, so in order to invest in individual stocks, I think it's necessary to have at least $50,000 so you can divide it among about 10 stocks in different industries and still keep commissions to a low percentage of your investment. (At $5000, a $10 commission is only 0.2% so that won't seriously hurt your return. If you tried to buy $200 worth of a stock, a $10 commission would be 5% of the investment - and another 5% when you sell so your stock has to go up 10% just for you to break even.)

I think a mutual fund is a better choice for people with less than $50,000 to invest or that don't want to take the time to research stocks. If it were me, I would put my $200-300 a month in an index fund that tracks a major market index like the S&P 500, Mid-Cap 400, or Russell 2000. I'd also be sure to choose a "no-load" fund (i.e. One that doesn't charge a sales fee/commission). A company like Vanguard or possibly Fidelity or American Century might have some funds like that.

Carol asks…

How to invest in mutual funds, stocks, bonds, or Treasury bills and securities?

Do I have to diversify or focus in one investment?

admin answers:

First u have 2 decide how much return u want in a year?
Suppose u r willing just 6 % return on ur investment then u invest in govt. Bank deposits-these r totally safe & liquid.
But if u want to earn 25% or 50% in a year,then u have2 search avenues which gave such returns last year & expected 2 repeat the results.
So post such questions in yahoo answers2 know in which part of world u can double ur money in what?
Then evaluate the answers regarding feasibility, liquidity and safty.
I know here in my town i double my money in 2 years in property investment, so if u want2 join u r welcome.

Lisa asks…

How do you have your 401K currently invested among stocks, bonds, and cash?

Please give your age as well as the percentage breakdown of stocks, bonds, and cash in your 401K. Myself, I am 31 years old and am 50% bonds and 50% cash and 0% stocks. I am trying to get a sampling of how others are investing their company retirement plans. Thanks.

admin answers:

I no longer have a 401k. It is all in IRA accounts now. 30% cash, 30% bonds, 40% equities. I am retired. At one time there was a higher % in equities, but that portion of the portfolio has suffered something of a relapse.

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