BusinessHABMoney Stock Market Investment : Everybody knows they should be saving for retirement.
But when you’re young, it can seem like that day is well down the road, and you’ve got plenty of time.
On top of that, if you’re just starting a career.
You might not have a lot of extra money to save or invest for your future.
However, you don’t need thousands of dollars to start investing.
Online brokers and mobile apps make it possible to invest in the stock market.
Even if you can only spare a few pennies a day.
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Money Stock Market Investment http://howtostarts.com
Money Stock Market Investment:
1. Evaluate several different micro-investing apps.
There are numerous investment apps available for both Android and iOS phones.
Many of these apps also have a full website with additional investment features you won’t find on the app.
- Some apps require a minimum deposit to open your account, or require you to make a commitment to deposit a specific amount of money each month. Others, such as Acorns, have a round-up feature where the app rounds up your everyday purchases to the nearest dollar and invests that change for you.
- The best app for you may depend on how much money you have available to invest and whether you want to start investing right away. For example, Robinhood offers free stock trades, but you can’t buy fractional shares of stock – only full shares
Money Stock Market Investment:
2. Calculate the true cost of any fees.
Many micro-investing apps charge relatively small flat fees per month, typically less than #5.oo.
However, depending on how much you plan to invest, that small flat fee could actually represent a large percentage of the money you have invested.
- For example, if your app charges a monthly service fee of #100, and you invest #1000 a month, that amounts to a 10 percent fee.
- Most online brokers charge significantly lower fees than that.
- Although they may have higher minimum balance or contribution requirements.
Money Stock Market Investment:
3. Set up your investing account.
You’ll likely also need to connect your bank account.
- After you set up your account, the app may walk you through some basic information about investment strategy and how the stock market works. Many of these resources will be available for you to look at later on if you need a refresher.
Tip: Look for any promotions before you open your account.
Many apps offer deals for new investors.
Such as referral bonuses or no fees for the first few months.
Money Stock Market Investment:
4. Choose your account type and investment strategy.
Micro-investing apps typically provide a range of broad portfolio descriptions and allow you to pick one.
You’ll also likely have to answer questions about whether you want to be able to access your money right away.
- If you’re setting up a retirement account, you’ll have to decide whether you want to pay taxes on income from those accounts now, or have those taxes deferred until you actually access the money.
Money Stock Market Investment:
5. Set up weekly or monthly contributions.
Once you’ve connected your bank account to your app.
You can set up automatic payments each week or each month.
Some apps have a minimum required contribution.
- Look at your budget and determine how much money you can afford to put towards investments.
- Keep in mind that this isn’t money you’ll be able to access immediately if you need it.
Money Stock Market Investment:
6. Compare several different online brokers.
If being able to access your account from your phone is important, check out their mobile app as well.
- The broker’s website should be easy to navigate, with a relatively intuitive interface.
- If you have ideas of the types of stock you want to invest in, make sure the broker offers that stock for purchase.
Money Stock Market Investment:
7. Check the minimum account deposit requirement.
- Charles Schwab and others have a minimum balance requirement of #1,000, but it can be waived if you set up an automatic monthly transfer of #100, or open a checking account and link it to your investment account.
Money Stock Market Investment:
8. Set up your account with the broker of your choosing.
Setting up an investment account isn’t much different than setting up any kind of bank account.
The whole process shouldn’t take you more than a few minutes to complete online.
- Link your bank account and make your initial deposit or transfer of funds.
- It may take a few days for the money to be available for you to use to buy stocks.
- While you’re waiting, you can continue to learn about the stock market and investing strategies.
- You may also want to set up automatic weekly or monthly transfers from your bank account to your investment account. If your income varies, you can also make your own contributions when it’s feasible to do so.
Money Stock Market Investment:
9. Research stocks extensively before you buy.
Check the company’s history and the stock’s performance over the past 5 or 10 years.
Determine whether there have been any major changes at the executive level recently.
Or if the company has any new products coming out. These are things that could impact the stock price.
- Full-service brokers would be able to give you lots of advice on which stocks to pick and how to build your portfolio. However, if you don’t have a lot of money to invest, a full-service broker is likely out of your price range. This means you’ll need to do the bulk of the research yourself.
Tip: You can look over a stock prospectus and company news on the company’s website.
In addition, look for analysis and articles on financial websites and in leading financial publications, such as the Wall Street Journal.
Money Stock Market Investment:
10. Choose 1 or 2 stocks you want to buy.
Money Stock Market Investment:
11. Increase your holdings as your account balance grows.
By investing small amounts gradually, you’ll eventually have a deep, well-diversified portfolio.
- Once you have 5 or 6 different stocks, apportion your contribution among the stocks to keep your portfolio balanced. For example, if a stock is over-performing and has a high price as a result, you would typically by less of that stock.
Money Stock Market Investment:
12. Find out if your employer has a 401(k) plan.
While you probably got information about your employer’s retirement plan during orientation, that information may have gotten lost in the shuffle as you adjusted to your new position. Additionally, most employers require you to work with them for at least 60 or 90 days before you become eligible to participate in any retirement plan.
- You can check through your orientation materials or employee handbook if you have one. If not, ask your manager or someone in human resources. They should be able to give you more information.
Money Stock Market Investment:
13. Choose a traditional 401(k) or a Roth 401(k).
Contributions to a traditional 401(k) are taken from pre-tax dollars, while Roth contributions are taken from your income after taxes.
- Someone in human resources will be able to walk through the options available.
- However, they won’t be able to give you any individual investment advice.
Money Stock Market Investment:
14. Evaluate your investment options.
You’ll likely be put in touch with a plan administrator who will enroll you in the plan and get you started with managing your investments. Most 401(k) administrators offer different mutual funds, including index fund
Your plan administrator will give you information about the types of investments available. You may want to do additional research or consult a financial advisor if you don’t think you know enough to make the best decision.
15. Invest a small portion of your wages or salary.
When you’re just starting out, you likely don’t have a lot of wiggle room in your budget.
However, you can usually handle contributing 1 or 2 percent of your paycheck to your 401(k).
If you are paid an hourly wage, your employer may also allow you to contribute a specific amount out of each paycheck to your 401(k), rather than a percentage. Sometimes this can be as low as $1 to $5 per paycheck.
- Check your employer’s match when deciding how much of your salary to invest. Employers may match 50 to 100 percent of your contributions, up to a maximum percentage of your salary (typically anywhere from 3 to 6 percent). Because employer match is essentially free money, you want to get as much of this as you can.
Money Stock Market Investment:
16. Think before you leap
Employer matching funds may be subject to a vesting period. If you leave the company before that period ends, you won’t get any of that money. You’ll always get to keep your own contributions, however.
Money Stock Market Investment:
17. Increase your contribution when you get a pay raise.
Each time you get a pay raise, distribute half of that amount to pay and the other half to your 401(k) contributions. That way your investments are increasing but you won’t miss the money.
For example, suppose you were contributing 2 percent of your salary to your 401(k), and you just got a 2 percent pay raise. You could increase your investment to 3 percent. If your employer matches up to 6 percent, you’ve maxed out your employer’s matching.
Conclusion
This article covers investing in the stock market in Nigeria.
If you live in another country, or are interested in investing in another country’s stock exchange, seek out a financial adviser with experience in that area.
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