Not sure where to post this, so placing it here. Stocks?

Question

Has anyone ever invested in stocks? Pros/cons, stories, tips, website links, anything would be helpful. We want to put at little as possible in (like maybe $10) just to see how it goes. Husbands 401k is invested in stocks but it's through the company who handles it. Not sure how much we would profit off of $10 or how long it would take, or even how soon we could pull out from the stock....any help would be awesome.

Answer

I am invested in stocks. I have made a 100% profit in the past 3 years. Some years are good, some are bad. But it helps to seek out a financial advisor for this. Unless you are extremely knowledgeable about rhe different markets and businesses, you won't see a large profit.

Answer

I'm a stock broker. If you're taking about investing $10, you're better off with a savings account. With that amount, all you can really buy are penny stocks which are very high risk. There are a lot of websites claiming you can make tons of money investing in penny stocks, but it's extremely rare. The majority of people who trade individual stocks, lose money. 
401k money is usually invested in mutual funds which are managed by a team of professionals. There are stock mutual funds, bond funds, blend funds, etc. Your husband can call his 401k provider for advice on what funds to pick. 
You can also invest in mutual funds outside of a 401k by opening a brokerage account, but most funds will have a minimum investment amount of at least $2500.

Answer

Continued...) All of these websites are awesome so I'd suggest clicking around on them and seeing what you find! And doing some research on these concepts yourself with good ol' google. Also, some of these concepts can be tough the first time you try to wrap your head around them. Don't worry though! It'll get easier as you begin the play around with it. My final piece of advice is the age old wisdom of investing: diversify, and know what you own. In other words, invest in an investment vehicle that's inherently diversified (like mutual funds or ETFs) because you avoid the "all the eggs in one basket" syndrome easily by doing this (I.E. it's safer). Know what you own means that you should never ever invest in something that you don't understand or know what it is: so never invest in an investment vehicle that you don't understand, and never invest in a company you don't know/understand.

So short answer? $10 won't do much, but a small monthly investment in something you don't have to think about will make a world of difference- the hardest part is picking where you want to park your money.

Hope this helps! Let me know if you have any questions, this is a passion of mine so I love to talk about this stuff haha. Good luck and happy investing!!

Answer

Links-
Mutual Funds: http://m.investor.gov/investing-basics/investment-products/mutual-funds
Exchange Traded Funds: http://www.investopedia.com/terms/e/etf.asp
Great Guide to Investing (had to use this on my finance class last semester, great way to introduce us to these concepts!): http://www.fool.com/how-to-invest/thirteen-steps/index.aspx?source=iibedicl10000001
Compound Interest: http://www.investopedia.com/terms/c/compoundinterest.asp
Time Value of Money: http://www.investopedia.com/terms/t/timevalueofmoney.asp
Why you should pick an index fund (explained in 60 seconds): http://www.fool.com/60second/indexfund.htm
Why you should open a Roth IRA: http://m.kiplinger.com/article/retirement/T046-C006-S001-8-reasons-you-need-a-roth-ira-now.html

Answer

Hey there! Sorry for how long this is, glow is making me break it into smaller posts haha. So first off congrats on thinking about dipping your toe into the world of investing! Totally a great thing to do, and you won't regret it! So first, are you taking about a 1 time $10 investment or a $10 a month investment? Because a $10 a month investment might actually yield some decent returns over a couple years but a 1 time $10 investment won't do anything for you even over decades (a few cents per year) Second, forget investing directly in stocks- unless you're an expert finance gurus will tell you not to put your eggs in this basket- instead, try a mutual fund or an exchange traded fund (ETF)! Most finance professionals agree that these are the absolute best investment vehicles and the best part is that you don't have to think about them or worry about buying and selling them, it's taken care of for you! (It's still investing in stocks just in a basket of them rather than individual stocks.) You just invest and hold. My personal story is that I've been invested in a mutual fund (large-cap) for about a year now, contribute about $50 a month, and am currently at about $3,000. I wanted to start investing early to take advantage of the principle of compound interest, which is every investors best friend. Here are a few links to get you started so you can start dipping your toe in the investment waters ☺️ Also, I'd ask your husband if he's invested in pure stocks via his 401k, or in stocks via a mutual fund through is 401k. I'm willing to bet it's the latter, but I'd be interested because the same principle applies to him! Mutual funds and ETFs are the smart choice. (I'd personally recommend an index ETF for your situation but I'm by no means a professional, just a student who's currently studying this stuff ☺️) Links in next post-

Not sure where to post this, so placing it here. Stocks?

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