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$1000, is it enough to start making some successful investments?

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    $1000, is it enough to start making some successful investments?

    It seems that this amount of money isn't enough for great purposes. But all starts with small steps, doesn't it? Is there a way to turn $1000 into something bigger, and then to say "yes, I've done it! This is the most intelligent and successful investment."?

    #2
    Money magazine does a feature every year called What to do with $1,000. If you Google that, you can find the articles from prior years.

    Sure, there are always ways to invest relatively small amounts. The challenge used to be diversification and fees but now with commission-free ETFs, you can actually get yourself a nicely balanced portfolio with $1,000.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

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      #3
      Originally posted by Britanny_Wells View Post
      It seems that this amount of money isn't enough for great purposes. But all starts with small steps, doesn't it? Is there a way to turn $1000 into something bigger, and then to say "yes, I've done it! This is the most intelligent and successful investment."?
      Changing subjects just a little, but... is your emergency fund fully loaded?

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        #4
        In a word Yes! Make a start, arrange your finances to allow regular contributions. A modest sum can be set up as automatic contribution, called DCA [Dollar Cost Averaging] to buy units of Mutual Fund or Exchange Traded Fund [ETF] at that date's current price. As a registered 'retirement fund,' it's tax deductible; regular fund only taxed on profit when cashed as capital gain.

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          #5
          Yep that's how I started out 27 year ago but I had 3k to invest.

          My first professional job my boss helped me get started in investing. I still remember the funds, Gabelli Asset Funds, American Century Ultra Fund and Vanguard Money Market Fund. I put a 1k in each and set up auto deposits of $25 monthly. Over time I upped my auto deposits. We also had a plan that we could buy US Savings Bond and they'd take $25 out of my pay and I'd get 1 $100 Saving Bond a month. I'm loving that now that I have 2 in college and can cash them in for their school!

          Anywho, get started and keep at it. Add more when you can and you'll be surprised in 30 years what your 1,000 grows to.

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            #6
            You can start investing at any point, but with small amounts you don't have much economy of scale and commissions and fees can eat up a good percentage of your capital.

            I waited until I had around $40,000 in cash saved up before I decided to jump into the stock market.
            Brian

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              #7
              Charles Schwab has a minimum opening balance of $1,000. With that, you can buy ETFs (Exchange Traded Funds, which are tiny slices of mutual funds that are treated like stock shares).

              They offer a range of zero-commission ETFs called OneSource.

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                #8
                Originally posted by bjl584 View Post
                with small amounts you don't have much economy of scale and commissions and fees can eat up a good percentage of your capital.
                Originally posted by Nutria View Post
                Charles Schwab has a minimum opening balance of $1,000. With that, you can buy ETFs (Exchange Traded Funds, which are tiny slices of mutual funds that are treated like stock shares).

                They offer a range of zero-commission ETFs called OneSource.
                As Nutria and I both mentioned, that really isn't true anymore. With commission-free ETFs and online ultra-discount brokers, you can build a well-diversified, low fee portfolio with almost any amount.
                Steve

                * Despite the high cost of living, it remains very popular.
                * Why should I pay for my daughter's education when she already knows everything?
                * There are no shortcuts to anywhere worth going.

                Comment


                  #9
                  Absolutely you can invest $1000 or even less. I use CapitalOne360 and have a stock account as well as a Roth IRA account. Both with a bit over $5000 each. I deposit money monthly into those two accounts and when I have a couple of hundred saved up I invest it, whether into my IRA or the stock portfolio. But then this year I realized that I never make the total deposits that I could for my age into the ROTH IRA, and I have to pay taxes on the dividends my stock portfolio throws off, I put that money into the IRA since I know if needed I can withdraw the actual principle that I put in without a penalty. As it is I'm almost old enough to take money out anyhow as I'll be 62 in a couple months.

                  I have the actual Roth money in an American Century mutual fund as it has lower investment limits than many of the other do and you can invest, I think it is $250 initially. You would have to check on that at this point. If you use this link, you can get a $25 bonus for signing up as they also have checking and savings accounts as well as investments. https://www.capitalone.com/bank/referred-by-friend/
                  I think I have 6 different accounts with them and no charges for it. I've been using them since they were ING and the big bouncing orange ball! No problems. I love watching my money grow.
                  Gailete
                  http://www.MoonwishesSewingandCrafts.com

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                    #10
                    I would put that $1000 into a balanced no-load mutual fund - Janus, American Funds, etc., and then add to it each month by automatic withdrawal.

                    Even has little as $50 a month adds up over the years with growth.

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                      #11
                      Many mutual funds, etc. won't take amounts of less than $1000, etc. but some do take smaller initial deposits as well as smaller amounts as you can contribute. I started out investing with very small amounts years ago that they have now grown. I like seeing that those little amounts have grown and are throwing off dividends. Several of them now give me over the course of the year, an entire share in the company due to compounding. I know it doesn't sound like much, but better to have that almost $11K invested than to have spent it on frivolous stuff over those years. These accounts plus some IRAs that we opened years ago and couldn't add anything else for many years are far better than nothing now that I am in my 60's and could take the money out of the accounts, but as long as I can keep adding to them, I will and don't want to take anything out until the day I can't move and really need the money.
                      Gailete
                      http://www.MoonwishesSewingandCrafts.com

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                        #12
                        Originally posted by Gailete View Post
                        I know it doesn't sound like much, but better to have that almost $11K invested
                        We do what we can... My monthly investments are radically smaller than those of DisneySteve, SinGuy and TexasHusker, but that doesn't stop me from plugging away.

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                          #13
                          Originally posted by Nutria View Post
                          We do what we can... My monthly investments are radically smaller than those of DisneySteve, SinGuy and TexasHusker, but that doesn't stop me from plugging away.
                          Absolutely. It's all relative to your circumstances.

                          We opened our first mutual fund account in August 1992 with $50 and added $50/month from then on. We still own that account which now has about 100K in it. We increased the monthly deposit over the years as our income allowed.
                          Steve

                          * Despite the high cost of living, it remains very popular.
                          * Why should I pay for my daughter's education when she already knows everything?
                          * There are no shortcuts to anywhere worth going.

                          Comment


                            #14
                            with $1000?? What's the purpose of this investment?

                            For me the only reason I would invest one single payment of $1000 in securities is to get used to the process, and learn how to cope with the ups and downs etc.. but not for a real tangible monetary benefit. It's just too small on investment. I would rather try to invest it in a passive small business idea.. preferably something that's all cash. Think ebay transaction that's predictable or something more creative ..

                            There's a carribean carnival in my city around this time every year. You can literally just stand on the street and sell cold water bottles to folks walking around. $250 gets you 6000 water bottles .. let's say you only sell a quarter of that, you still make $1500 on a $250 investment. What's the IRR on that?

                            Not all opportunities are that profitable .. probably not even close.. but watching $1000 earning 7-8% every year is just not worth it IMO.

                            Comment


                              #15
                              Originally posted by Captain Save View Post
                              There's a carribean carnival in my city around this time every year. You can literally just stand on the street and sell cold water bottles to folks walking around.
                              And get arrested (or at least cited and made to go home) for not having a vendor's permit.

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