UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Author: MiniNick Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2674  
Subject: Starting Out Date: 8/2/2011 2:51 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
Hello. I am a teen hoping to start investing. I was wondering, what is a good online broker for a teen who as 500 or less to start with? Or do I need to save up more before I start investing?
Thanks
Print the post Back To Top
Author: desertdaveataol Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2660 of 2674
Subject: Re: Starting Out Date: 8/2/2011 6:52 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Hello. I am a teen hoping to start investing. I was wondering, what is a good online broker for a teen who as 500 or less to start with? Or do I need to save up more before I start investing?

There are two kinds of stock buyers:

Traders must spend a large proportion of their time finding, evaluating, buying and watching and selling their stocks. They pay a lot in broker's fees and taxes. They often brag of their successes but we seldom hear of their losses.

Investors spend a lot of time finding and evaluating quality stocks which they don't have to watch like a hawk. Then they sit back and watch them grow.

I take investing one step further and invest only in stocks that pay dividends. Right now three of the big name stocks we own are PNY, SO & WTR.

Without going to a broker you can start DRIP accounts at PNY, WTR and SO for as little as $250 and/or setting up a monthly payment plan for as little as $50 a month. You can do this just by contacting the companies. NO broker = NO fees.

PNY (Been paying a dividend for over 33 years.)
Gives a 5% discount on reinvested dividends in its DRIP plan.)
You can get more info and sign up here:
http://www.piedmontng.com/investors/stockinformation/home.as...

WTR (A fast growing water utility.)
Gives a 5% discount on reinvested dividends in its DRIP plan.)
You can get more info and sign up here:
http://ir.aquaamerica.com/divreinvest.cfm

(Note that both of these companies require that you be enrolled directly in their DRIP plans to earn the 5% discounts. Pseudo DRIPs through brokerages do NOT count and do not earn the 5% discount on reinvested dividends.)

SO (Been paying a dividend for over 60 years.)
You can contact them about starting an account and sign up here:
http://investor.southerncompany.com/services.cfm

WRE (Been paying a dividend for 39 years.)
A REIT centered in Washington DC, it'll have renters as long as we have a government.
You can get more info and sign up here:
http://ir.writ.com/drip.aspx?iid=103036

If you're into DRIPs you need to visit this site:
http://dripinvesting.org/Tools/Tools.asp

There are guys & gals there who'll be able to answer your questions. Be sure to take a look at/ download/print out their U.S. Dividend Champions

Both PNY and WTR will give you a 5% discount on reinvested dividends.

As to your $500, I wouldn't hesitate a second in your position. I'd start DRIPs in each of the following stocks.

PNY (gives 5% discount on reinvested dividends in their DRIP plan)

WTR (gives 5% discount on reinvested dividends in their DRIP plan)

SO (is a utility, like PNY & WTR, so you don't need to worry about them going out of business.)

WRE (A REIT centered in Washington DC, it'll have renters as long as we have a government.)

Put $250 in PNY & WTR to open the DRIPs then sit back and watch them grow!

These companies use "Transfer Agents" which let you start a DRIP with them WITHOUT going through a broker and paying broker fees.

They DO NOT charge for over the counter payments or reinvestment of dividends.

I know it's tempting to want'a play Wall St. Wizard, but each trade through a broker costs you $$$ both buying and selling which means you've got to sell the stock for $$$ more than you paid for it just to break even.

Only you can decide if you want the excitement of the Wall St. casinos or the safety of stodgy old dividend paying utility stocks.

At your age the above stocks will be worth fortunes when you retire* if you just get'em started now and let'em grow.
*yes, I know, but that time is coming sooner than you think.

Desert (Time: it's what keeps everything from happening at once.) Dave
-- (Quotation, with attribution, permitted and encouraged.)

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
Author: awesomestockdude Three stars, 500 posts Ticker Guide Supernova Odyssey 1
Mission Team Member CAPS All Star SC1 Red Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2661 of 2674
Subject: Re: Starting Out Date: 8/2/2011 11:30 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Hey MiniNick!

It's awesome to see another teen around on the board. This board has definitely helped me become a better investor, and I'm sure it will for you too.

One of my friends set up an account in Scottrade. I believe the minimum amount you can put in is $500, commission fees are $7, and they do not reinvest dividends. Zecco could be a potential option for you as well. There is no minimum amount to set up an account, the commission fees are $4.95, and I believe they do reinvest dividends. You'll probably want to do little more research, but I hope that helps!

Scottrade: http://www.scottrade.com/

Zecco: https://www.zecco.com/

If you keep commission fees down to a reasonable level, $500 should be a good enough starting point to invest into 3 or so stocks. It is true, dividends do definitely add up over the long-term, but when first starting I would focus on investing to educate yourself. Find businesses you are interested in from a consumer angle, and try to research those. It will make learning more enjoyable, especially if the business is easily understandable. These could be businesses like Activision (think Call of Duty), Starbucks, Hasbro (think Transformers), and Nike. I don't limit myself to dividend paying businesses (I think some non-dividend paying businesses are fantastic), but all of these mentioned do pay dividends.

$500 is a fine starting place, but I hope you can add more over time. You just never know when great investment opportunities can pop up, and if you don't have any more cash on hand then it too bad, so sad. $500 may not even sound like much compared to adults around us, but think about it this way. If you invest that $500 earning a reasonable return of 10% (if you invest wisely) and don't add another cent for 50 years, in the end you will have almost $60,000. Yup, time is definitely on our side if we start young!

I hope you stick around on the board. It's been dead for quite a long time, and if things become like the past again, we can turn this board into a great learning environment.

Thanks for posting, and if you have any more questions feel free to ask!

Best,

Aaron
Long ATVI, SBUX, and HAS

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post Back To Top
Author: MiniNick Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2662 of 2674
Subject: Re: Starting Out Date: 8/3/2011 3:35 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Would these drips be a good looongggg term investment?? like 50 years long term? I would add on of course.

Print the post Back To Top
Author: desertdaveataol Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2663 of 2674
Subject: Re: Starting Out Date: 8/3/2011 5:12 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 1
Would these drips be a good looongggg term investment??

You betcha! If you look at the links I gave you'll see these companies have been paying dividends for decades.

Yeah but does that mean they'll be paying dividends for future decades?

I think so. You'll note that all but one are utilities. Happy voters tend to reelect the politicians currently in office. Do you think politicians want cold, unwashed constituents voting in the dark?

Also, utility customers are going anywhere. If you decide to move you'll want to sell your house to someone else who'll also need gas, water and electricity.

The only company on that list that isn't a utility is WRE a REIT (REIT's buy property like malls, apartments & industrial buildings then rent them out) in Washington DC. I believe WRE will have renters as long as we have a government;-)

Desert (Time: it's what keeps everything from happening at once.) Dave
-- (Quotation, with attribution, permitted and encouraged.)

Print the post Back To Top
Author: MiniNick Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2666 of 2674
Subject: Re: Starting Out Date: 8/11/2011 9:38 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
I have been trying to find custodial accounts (I am under 18) on both of those sites but have found nothing. Do I need a custodial account??

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev Thread | Next Thread
Advertisement