Front Office Football Central - View Single Post - Thinking of getting into the stock market

Logan · 01-01-2008, 01:08 PM

I'd tell you to do one of two things...if you really want this to slowly grow into something with small contributions, do it as an IRA. Or do your research and find a company you really like and throw your $1K into that. As Quik said, dividing that amount into smaller stocks is gonna kill you when it comes to the fees, even if you go with Scottrade at $7/trade. Buying and selling 5 stocks has erased 7% of your value before you've gained anything. Factor in taxes on any gains and the 4.5% or so you can get if you just left the $1K in a high-yield savings, and you have a lot of work to do to catch up. So again, I'd say as option 2, buy $1K in a company and hope that grows into something nice.

01-01-2008, 01:08 PM	#20
Logan Head Coach Join Date: Oct 2000 Location: NYC	I'd tell you to do one of two things...if you really want this to slowly grow into something with small contributions, do it as an IRA. Or do your research and find a company you really like and throw your $1K into that. As Quik said, dividing that amount into smaller stocks is gonna kill you when it comes to the fees, even if you go with Scottrade at $7/trade. Buying and selling 5 stocks has erased 7% of your value before you've gained anything. Factor in taxes on any gains and the 4.5% or so you can get if you just left the $1K in a high-yield savings, and you have a lot of work to do to catch up. So again, I'd say as option 2, buy $1K in a company and hope that grows into something nice.