Investing can be easy on just $50 per month, and when
you place your money in Blue-Chip stocks, or those well
established and financially sound, you can earn a higher
return than any bank or savings and loan can offer.
While day trading can be lucrative if you're a finance
expert and know what you're doing, buy-and-hold investing
is typically the safest and most passive investment method
available for the general public. When you buy and hold,
you purchase stock in a company for the long-run, or for
more than five years. Once purchased, you can let the
market fluctuate up and down without worrying about its
impact on your stocks. After all, most Blue-Chip stocks
go up in value at a predictable rate over the long haul.
One of the easiest ways to get into the stock market
on a low budget is through DRiP investing, short for Dividend
Reinvestment Program. Many DRiPs let you purchase shares
directly from the company via an Optional Cash Purchase
Plan or Stock Purchase Plan for as little as $50. You
can opt for a one-time, periodic or ongoing investment,
helping you slowly build up a high-return nest egg.
To start a DRiP, most of us need to make our first share
purchase through a brokerage firm (i.e. Morgan Stanley/Dean
Witter, Schwab, A.G. Edwards, etc.). Just give them a
call and purchase one share in a company you've already
researched and found to offer a DRiP and Optional Cash
Purchase plan. It takes a few months to receive your first
statement. When you get your statement in the mail, it
should have instructions on establishing a one-time or
ongoing transfer from your checking account for incremental
shares. (If it doesn't just call the transfer agent.)
Once established, you're well on your way to building
a solid, cost-effective portfolio.
For more information on Dividend Reinvestment Plans
or to research companies offering Optional Cash Purchase
Plans, search Dividend Reinvestment Plan on wikipedia.org
or your favorite search engine. |
