Money & Investing – Banks.com

Image by TW Collins via Flickr

Right now, as many have said, is a good time to get into the stock market. It’s not a great time, like it was a few months ago when  everything could be bought on the cheap, but it’s still a good time to get in and reap the benefits of a rising stock market. Some folks, though, are worried that they don’t have enough money to start investing. The good news is that recent developments have made Wall Street more accessible to greater numbers of people than ever before.

Amateur Asset Allocator has a great post on how you can invest, even though you may not have a great deal of money. Some of the suggestions that he makes include:

• All in one funds with low minimums and low fees. You can start these with as little as $1,000, and put in a little bit each month.
• Retirement funds with low minimums. There are many retirement plans that will waive the minimums, letting you start for as little as $50, provided you sign up to automatically invest money each month.

The key is dollar cost averaging

When you have limited funds, the key to successful investing is dollar cost averaging. You put in a certain amount of money each month and buy partial shares. This way, you are always buying as many shares as possible, and you are doing so regularly. Your investment portfolio grows over time, and the consistency can be an advantage. It allows you to reap some of the benefits of investing without having to use a big chunk of capital.

In the end, the key is to get started investing. Figure out how much you can afford each month, and then have that money automatically invested. You’ll be glad you did.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss. You are responsible for your own investment decisions and any loss that may result from your decisions.