Author Topic: Investing small amounts of money  (Read 4697 times)

Miss Scribbles

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Investing small amounts of money
« on: December 11, 2013, 04:40:39 PM »
Hi everyone,

I am such a new Mustachian that you can barely see my stubble, but I am thoroughly thrilled to have found this blog.

Although I am embarrassed to admit it, I have only recently begun to save money and I am in my fifties, but at least I have started.

I would like to know if anyone knows where I can begin to invest small amounts of money?  I took a look at Lending Club, but I believe they require a few thousand to start.  Because I am just beginning to save, I am now putting most of my cash aside for a cushion in case of an emergency. But I would like to take as little as $100 dollars each month and begin to invest it.

Because I am so woefully under-educated about investing, I am learning something each day about finances, investing and how to handle money, and this blog has been an excellent source of information.

With my new (only during the last week) exposure to this blog, I have taken a close look at my budget and realized that I could save almost $400 a month in stopping incidental spending, i.e. no more buying snacks and sandwiches at work, no lattes, no restaurants, no pre-prepared foods, and the best news, is that I am cutting off my cable, which will give me an extra $90.  I'd love to take that cable savings and invest it somewhere, and would like to average the 7% interest mention on MMM's blog.

Any ideas?

Thanking you in advance for whatever guidance you can give,
Miss Scribbles

missundecided

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Re: Investing small amounts of money
« Reply #1 on: December 11, 2013, 05:20:12 PM »

I would like to know if anyone knows where I can begin to invest small amounts of money?  I took a look at Lending Club, but I believe they require a few thousand to start. 

When I signed up for Lending Club, the minimum was only $25 to invest, and after I rolled in $25 each time, I ended up with only $100 tied up in LC. Then again, this was a couple of years ago, so perhaps this minimum has changed. 

Miss Scribbles

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Re: Investing small amounts of money
« Reply #2 on: December 11, 2013, 05:27:03 PM »
From one "miss" to another "miss,"

Thanks so much--I will go back and take a look now.


Another Reader

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Re: Investing small amounts of money
« Reply #3 on: December 11, 2013, 05:36:24 PM »
You don't provide any information on your income, your expenses, or the purpose you have in saving.  Are you working?  Do you have a pension plan?  Do you have a spouse and/or children?

There are mutual funds that you can start investing in with small amounts of money and a regular investment.  If you go the Vanguard route, some of their funds require only $1,000.  But what is your purpose?  Do you want to invest for retirement?  Save a down payment for a house?  Buy a used car in a year?  That will determine where you should start.

gimp

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Re: Investing small amounts of money
« Reply #4 on: December 11, 2013, 05:37:30 PM »
A lot of plans require an original investment that is a couple thousand, but after that, you can add smaller amounts. Would you be able to, for example, put $1K or $3K into a vanguard account and then keep adding little bits at a time?

Also, how's your 401K + IRA?

aj_yooper

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Re: Investing small amounts of money
« Reply #5 on: December 11, 2013, 05:48:00 PM »
Welcome to the Forum!

You are feeling the power of your savings muscles flex so good on you.  I would suggest that you get started by reading at Bogleheads  at the investing (http://www.bogleheads.org/wiki/Bogleheads®_investing_start-up_kit) and the personal finance sites (http://www.bogleheads.org/wiki/Bogleheads®_personal_finance_planning_start-up_kit) to get some start up information.  Also, go to the Vanguard site and read what they have posted on investing.  Before you start investing, I would suggest that you make sure you have an adequate emergency fund to help you cope with household calamity, should it happen. 

Stay tuned and enjoy the voyage!

irrational

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Re: Investing small amounts of money
« Reply #6 on: December 11, 2013, 06:10:52 PM »
A lot of plans require an original investment that is a couple thousand, but after that, you can add smaller amounts. Would you be able to, for example, put $1K or $3K into a vanguard account and then keep adding little bits at a time?

Also, how's your 401K + IRA?

I opened an IRA @ e-trade with (I think) $100. But, you are correct, some of the "better" firms & offerings certainly have minimums. I remember the first year with my IRA it was very difficult to find a no-load no-fee mutual fund with sub-$1000 initial purchases.

MKinVA

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Re: Investing small amounts of money
« Reply #7 on: December 11, 2013, 06:23:50 PM »
I would invest in some stocks through their reinvestment plans. At your age, and I am the same age, I wouldn't be playing the stock market if you don't have experience. For one, check out dominion resources which owns virginia power. Their dividend is one of the best and very stable. Have owned dom res for thirty years. Their are others too. The reinvestment plans are pretty cheap to get into and don't require a big up front investment.

Miss Scribbles

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Re: Investing small amounts of money
« Reply #8 on: December 11, 2013, 09:15:50 PM »
Thanks to everyone for their comments, recommendations and support.

Although I know it is better to list all accounts and conditions, I am simply too embarrassed to show how little I have in savings…especially when I see some of the other amounts on this site.  However, I am glad I am finally starting.

Today I finally have all of my financial data together and  I am still embarrassed to put these facts in front of you kind folks.  I will keep a private record and will be glad to post progress when I have made some.

Because I am just now starting to save and because I am beginning rather late in life, I will definitely continue to work.  I am employed now as a writer/editor and commute to work.  But because I know I will have to continue to work I am now researching how to work from home, simply because I love being able to work from home.  I can do freelance writing (writing for businesses, web content, commercial writing)  from home, but am also researching other types of work that can be home-based and that I really enjoy.

At the very least, I plan to post a progress report periodically and perhaps prove that it is never too late to start saving in order to live a better life.

Thanks again to all who have commented--it is truly appreciated.

MgoSam

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Re: Investing small amounts of money
« Reply #9 on: December 11, 2013, 11:34:40 PM »
I recommend Vanguard, they do have a Lifetime Target fund that requires a minimum of $1000 to start. But I do believe you can open an account with them with less, but that is their money market fund. As soon as you have a $1000 you can do that. This gives a way to get exposure to their Total Stock Fund, Total Int'l Fund, and Total Bond Fund. Based upon your time horizon (how soon you will need the money) there are different plans that give different allocations of these funds.

I recommend giving them a call and explain your situation.

Another Reader

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Re: Investing small amounts of money
« Reply #10 on: December 12, 2013, 05:14:41 AM »
It sounds like you do not have anything saved for retirement and you don't mention a pension or 401k.  If that's the case, in your shoes I would open an IRA account at Vanguard or Fidelity.  If Fidelity has offices near you, you might be more comfortable with them, as they can walk you through the process.  They offer mutual funds that are similar to Vanguard and also have investing seminars at the branch offices.  Because you are over 50, you can save $6,000 in an IRA every year.  You can contribute to a 2013 IRA up to April 15th of 2014. 

I don't think anyone has mentioned JL Collins' series of investing articles on his blog.  His writing style is simple and his points are easy to follow for a novice.  Basic investing will serve you well at this point, leave Lending Club to people that can afford to take bigger risks.