What money do you have to live on when you retire? How will you pay for your kids’ education? Have you got savings in the bank or have you considered investing stocks online? If these questions make you feel uneasy if not downright worried then you are not alone. Millions of Americans are going through life without taking basic steps to ensure their future financial security, and the futures of their children. Learning how to buy and sell stocks and taking advantage of discount online stockbrokers can change this worrying scenario completely.
According to a Princeton University survey which was undertaken for the Consumer Federation of America, over 70% of families that earn less than $50,000 a year have retirement savings of less than $5,000. Living from paycheck to paycheck is the American way. Investing stock online can be a safe and effective way to maintain lifestyles in retirement. But it does require some active learning and money management.
Although most of the big name brokerage companies like Merrill Lynch, Dean Witter, and Paine-Webber, and giant discount online stock brokers such as Fidelity and Charles Schwab won’t look at you for less than a $2,000 opening balance, ($1,000 for IRA, individual retirement account). But there are several brokers who will open your account with no money. These can be a standard interest-earning trading accounts or any kind of IRA.
Just keeping your money in the bank will not solve your future money needs. Learning how to buy and sell stocks will because it is a far more profitable investment method. However to buy and sell stocks is not as simple as marching into a stockbroker’s office and handing over cash for shares as if you were buying a new shirt. You will have to open an account with the brokerage, much like you did when you opened your account at the bank.
Thousands of American business corporations are quoted on the stock market in order sell parts of themselves and raise money to invest in land, factories and machinery. These corporations issue stock certificates or pieces of paper that represent ownership of a number parts the firm. These stock certificates represent a set number of shares and it is these that you buy and hold and earn dividends from.
When you buy and sell stocks you earn extra income from dividends and they grow in value over the long term. Stock values do go up and down but over years, which is what retirement is all about, stocks give better returns than almost any other form of investment. Discount online stockbrokers make this kind of investment cheaper and more convenient. Discount online stockbrokers bring a secure financial future within reach of all those Americans who need to rethink their money lifestyles.