Investment
I am 23 and have lightly babbled with investing via Robinhood for over a year now. Would you suggest someone my age and not of strong financial backing to go bigger with my investments in the realm of over $150 per share. I want to have my money start doing more for me than gain practically nothing in the bank. What would you advise?
Terry Says
I'm glad you are starting early to be concerned about investing for your future. But I think you might need a bit more information on the basics of investing. First of all, it's not the dollar price of the stock that makes for a better investment. True, some larger companies have higher share prices -- but there is no benefit in buying a stock whose price is over $150 a share. In fact, you might want to diversify your regular monthly investments by buying a mutual fund from a place like Fidelity or Vanguard. You could buy a fund that invests broadly across the stock market -- a S&P 500 stock index fund. Or you could buy a fund that invests in a sector of the economy that interests you. Or you could purchase fractional shares of higher priced stocks by going to Stockpile.com. I don't know where you're getting the money to invest -- but if you're working you should investigate plans offered by your employer. Sometimes they even "match" your contributions to the plan. And the plan should offer some diverse mutual funds. Plus, the money can grow tax-deferred until you retire. That will help you have more money to grow more dramatically. I'm so happy to hear of your interest in investing that I will contact you by email to send you a copy of my book -- The Savage Truth on Money.
