Comments on: How Does This Sharebuilder Investing Work? I’m New To Investing And I Need To Start Saving Up For College.

By: Ryan

Ryan — Tue, 13 Oct 2009 00:56:02 +0000

I love Sharebuilder and as DEN GIRUS said Sharebuilder is great for Drip investing. I am no financial advisor so I can’t tell you what stocks to invest in, however, I started drip investing a few years back buying stock $100 at a time and it has grown quite a bit. I choose well established long term dividend paying stocks and make sure to reinvest dividends. Sharebuilder is great because you only pay $4 for an automatic investments and the dividends are reinvested into more shares for free. When choosing what stocks to invest I would start with a good long term dividend paying stock that has a strong history. Be sure to do as much research as possible when choosing any stock or fund to invest in. It is never to early to start investing, I think, but be sure to put in the research in order to minimize risk.

Jason’s comment on a college savings plan is a great idea, check out http://www.savingforcollege.com for more info.

By: larryris

larryris — Thu, 01 Oct 2009 04:52:52 +0000

Better put your savings into a high interest account @12% APY as I did and get a guaranteed income.
This is the best and safest investment for you.
Investing in stocks is too risky for you as a beginner.
Contact me for more details (check my profile).
Good luck!

By: Jason

Jason — Thu, 01 Oct 2009 04:47:54 +0000

have a parent or guardian invest in a tax free College Savings Plan. It’ll also lower your parents taxes. They should give you the amount they save since it’s your investment that’s creating the savings.
With ShareBuilder, your returns will be subject to capital gains taxes which reduce your overall gains.

By: DEN GIRUS

DEN GIRUS — Thu, 01 Oct 2009 04:30:07 +0000

Sharebuilder is an excellent company to purchase stocks with if you are opening a DRIP Plan.
DRIP’s are seldom talked about because brokers make very little money when they suggest them. Yet, they have proven to be one of the best, if not the best, long-term strategy on Wall Street.
They are perfect for small investors, as well as big investors. They are safe and allow you to not care about whether the market is going up or down.
However, DRIP Plans are most effective on a long-term basis. If you do not plan on keeping you money in them for atleast 5 years, you might consider other options.
Be careful about mutual funds. People will lead you to believe that they are a safe haven. About 75% of them under perform the stock market. All of them have management fees, and some of them have sales loads.
There are good mutual funds available, but you really have to look at their track records.
Ask your parents for some guidance.