How to Invest in the Stock Market for Beginners with Little Money Today!

What’s up everybody, I’m Rob I’m Reshawn and this is Learn hustle Grow. If you are interested in all things money Marriage and travel. This is the place for you. It is saying that there are two surefire ways to build wealth in America investing in the stock market and real estate a Once every three years study by the Federal Reserve Board found that in 2016 51 point nine percent of families own stock either directly or as part of a fund the study discovered that about one-third of families in the lower-income scale has stock holdings in the next Forty percent of the income scale about seventy percent of the families held stock households in the top 10% of the income scale had stock ownership rates above 90 percent basically the poorest people own the least amount of stock the middle-class are getting a hang of it and the richest people Take full advantage we grew up with no money. No vacations pay less Pro Wings and free school lunches We both joined the military and went to college to get good jobs so that we would not be poor Guess what it worked? getting jobs after college and Consistently increasing our earnings allowed us to become part of the middle class Like most people we loved making money, but wanted more control over our time We were working hard, but could never take more than seven consecutive days of vacation We needed an alternative to the stressful careers. We had chosen when it came to building wealth I was convinced that real estate was the answer. Yes. He was I Kept singing the praises of a blog and podcast called bigger pockets until mrs Li was ready to get on board it took her a couple of years To realize the value of this awesome free resource. I Just could not hear and so we have paid off our debt using our modified Dave Ramsey plan Will include links to our investing in real estate and Dave Ramsey modified videos in the comments below While paying off our debts we continue to invest in our 401k retirement accounts We also opened an online trading account Yes, we invest in the stock market outside of our 401ks and IRAs Online trading accounts can be open for free with companies like fidelity Schwab and Vanguard their websites have search engines and access to free articles on investing Let me start by saying we really do get it deciding when and how to invest Can be a challenge is now the right time Do I need a financial advisor which investments are the right investments for me? Frankly, it can be a bit intimidating So we’re sharing how we decided what stocks to buy Here’s the deal you can begin to invest in the stock market without a lot of money Sure, we’ve heard of people investing in real estate with no money Usually mean no money of their own that’s another video When I had absolutely no money I met with a financial advisor who? Explained to me that my net worth would actually be higher if I were dead Yep, I was worth more dead than alive at the time the proceeds from my life insurance policy would pay Off my debt and leave behind a nest egg for my young son while this is probably true for most 20-something year olds It’s not where you want to be long term If this is true for you, and you’re over 30 with dependents, and you should definitely be alarmed the good news is that as long as you are breathing you have time to change your circumstances If you have never met with a financial advisor review your company benefits To find out if the first meeting is free at the very least This individual can give you some feedback regarding your retirement in the options and your net worth even more good news You don’t need a college degree in finance to figure out how money works Many people will tell you that college business courses taught them absolutely nothing about personal finance Unfortunately many business owners do a terrible job at managing their balance sheet Although I was a licensed financial advisor between the years of 2006 and 2008 I had no investments beyond my 401k Today our 401ks and IRAs are heavily invested in Target-date and index funds these funds are passively managed and do not require you to pick stocks Check out the book simple path to wealth by j al collins Target date funds are low fee mutual funds that allow you to set it and forget it. We’ve all heard the term no risk no reward This is true in investing and in life the further out the maturity date the more risk in the portfolio ideally as a young investor, you have more time to build wealth and a higher risk tolerance as someone retiring sooner you would choose a closer date the portfolio and your fund would have less risk an index fund is another type of mutual fund with low operating expenses the fund portfolio is constructed to match the components of a market index like the S&P 500 These funds follow their benchmark index no matter what the state of the market There is an index and an index fund for nearly every financial market in existence in our trading account We began has purchased a hundred shares at a time of companies that we were familiar with when large companies fall on hard times Stock prices drive we reviewed the 52-week price range Morningstar ratings and how the company compared to others in its same industry online brokerage firms provide research and information on individual stocks and mutual funds after doing our research, we choose what positions to buy based upon the money we have to invest Just to keep it simple If we have one thousand dollars to invest we would search for a ten dollar stock or mutual fund if there’s nothing in our price range we wait until we have more money to invest or Purchase more shares of what we already have when we’re happy with the growth of a stock We sell and look for other opportunities we can capitalize on Recently this meant selling some individual positions to move into sector funds Sector funds are industry specific mutual funds or ETFs These exchange-traded funds have a lower barrier of entry and low expense ratios why not index funds Index funds are great when the market is down When the market is high so our index funds Vanguard VF ni x is a well known S&P 500 index fund at the time of this recording a single share can be purchased for two hundred seventy eight dollars and 66 cents we own sector ETFs and healthcare technology and energy at the time of this recording you can purchase a single share of ExxonMobil for 72-64 you can purchase an oil and gas ETF with shares of Exxon Mobil and a hundred and twenty seven other companies for around 16 dollars and 32 cents share We continue to focus on the basic principle of buying low and selling high Rob and I are buy-and-hold investors essentially, we hold our investments long-term selling when we are comfortable with the growth achieved or When we want to utilize the funds to purchase real estate We our stock market investors but not active traders There are individuals that offer more information and online courses if you are interested in becoming a stock trader Check out Tila Holcomb the black mark exchange or invest with Terry. We’ll put the links below Should you decide to buy and sell? Individual socks, make sure you understand the profit equation profit equals revenue minus costs There are fees associated with buying and selling a stock You will also be responsible for short and long term capital gains taxes When you file your annual return as an active trader if you are not careful Fees and taxes may eat up any profit you might receive Keep in mind that personal finance is exactly that what works for us may not work for you Neither of us are licensed professional advisors today Rashan’s brokerage license expired years ago. We are simply sharing our experience in hopes that it might Demystify the idea of stock market investing if you’ve got any value at all from this video don’t forget like subscribe and share See you on the next video

3 Replies to “How to Invest in the Stock Market for Beginners with Little Money Today!

  1. Great info although you lost me when you started talking about sector the video got me excited about learning more and doing more. Im currently invested in my work place 403b and my IRA under very aggressive plans to make up for the "uninformed" years in my 30's. You live and learn. Tfs.

Leave a Reply

Your email address will not be published. Required fields are marked *