A Beginning Investor's Best Friend

[sweeps]

Have you been putting off investing because you don't know where to start? Say hello to our pal the mutual fund. We show you all there is to love about this simple investment and suggest three good funds that'll let you in for $50.

Kiplinger article

[creditcardfree]

I've heard of T. Rowe Price and TIAA-CREF. I didn't know that it was still possible to start investing for only $50 a month at those major mutual funds. That is good information for all of you that have yet to start investing in an roth or traditional ira.

When I worked for a mutual fund, their prospectus stated minimums of $500 to $1000. However, we made exceptions in some cases if the client set up a monthly automatic investment for $50 a month or more. I think this was done as a favor to the registered reps who sold the funds. So, my point is that it wouldn't hurt to ask if they can make an exception in exchange for monthly investments.

[Ima saver]

That was a good article, thanks. Note, these funds will only let you open an IRA with the $50 auto. investment.

[glock35ipsc]

It is almost the norm to be able to set up an IRA with automatic monthly investments of $50 to $100 a month. I have seen a couple as low as $25 a month too. T. Rowe Price has a $50/month minimum, Vanguard is $100/month minimum. Standard investment accounts can be higher, sometimes.

[sweeps]

Originally Posted by glock35ipsc

Vanguard is $100/month minimum.

Actually Vanguard has a minimum investment of $50 if you use ACH transfer. But Vanguard doesn't belong in this discussion anyway because you need a minimum of $3,000 (or more depending on the fund) to get started.

[Ima saver]

This really is a good place for a beginner to get started in mutual funds!