How to Invest in the Stock Market With Little Money

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You can invest in the stock market with little money if that is your situation. I share ways and brokers to use to invest in the market with little cash.

Do you want to know how to invest in the stock market with little money, but don’t think you can or don’t know where to start? I spoke with many investors in the same situation in my days as a stockbroker and help people everyday with the very same situation. Many believe you can’t invest in stocks with little money and they allow that to keep them from investing.

I love helping people who are just starting to invest with little money as they’re taking the first steps to grow their wealth. The challenge many often face though is the belief they can’t afford to start investing in the stock market.

We all come from different situations. Some may be working to pay off credit card debt and have very little money to spare. In that case, you want to lower your interest rates so you can pay it off as soon as possible.

Click here to compare balance transfer cards that offer 0% APR for up to 18 months and kill your debt for good so you can start investing sooner.

Others may have more resources but spend it foolishly on things that bring little value and, as a result, they feel like they can’t afford to invest.

Nearly anyone can invest in the stock market with little money, you just need to know the available options to invest. That’s not to mention the fact they also need to see the need to start investing and that even with little money that it’ll make a difference for their future.

As this is a part of my how to invest in stocks series, please feel free to check out some of the other posts in that series as each one builds on previous articles:

With that out of the way, let’s discuss how to invest in stocks with little money.

here’s how you can start investing with little money today


A common misconception among many is that you need to have tens of thousands of dollars to invest in the stock market. While more is certainly better, a lot of money is not a requirement in order to invest in the stock market.

Opening an online brokerage account is often the best way to get started if you’re investing with $500 or less, especially if you do not have access to a 401(k) through your employer.

If you’re looking for an online broker, you can check out my online brokerage page to find brokerages that I either personally use or have extensive experience with. Many online brokers start out with a minimum opening balance of as little as $500, or nothing at all, which is tough to beat.

Below are some of the brokers that allow you to open accounts with $500 or less – with the minimums to open an account to each:

  • Ally Invest – no minimum deposit required
  • Betterment – no minimum deposit required (they manage your investments for you)
  • E*TRADE – $500 minimum balance required, $0 for IRA accounts
  • Stash Invest  – $5 minimum balance required
  • Stockpile – no minimum deposit required and they give you $5 in free stock to start
  • Wealthsimple – no minimum balance required (they manage your investments for you)

As you can see, there are numerous options to trade stocks with little money – some that will even do the investing for you. You can also invest directly with specific mutual fund families, but you may be held back to many thanks to the minimum they require to open an account. There are many ways to invest in the stock market with little money, you just have to find the best fit for your situation.

If investing in the stock market isn’t your thing, you can also invest in commercial or residential real estate with little money. You can invest through Fundrise with as little as $500, when you open an account.

Automation Can Be Your Best Friend


One of the most common excuses I heard from those saying they couldn’t afford to invest in the stock market during my stockbroker days was that they commonly forgot to deposit money into their account. I understand that, life is busy and it’s easy to forget things, especially if it’s not a priority.

This is where automation can be such a huge asset to those just starting out and those who have been investing for years alike.

Many online brokerages allow you to set up an electronic transfer between your account with them and your bank account. You can either transfer money in individual situations, or set up a regular transfer at an interval of your choosing. Using this feature allows you to build up cash that you can invest in the stock market.

Unless you’re transferring a large amount over, try to avoid buying stocks with each transfer as it’ll only cause you to spend more money in fees and commission. To avoid this, you can focus on investing the money once a month or quarter to cut down on costs.

A Quantifiable Goal Can Be Your Best Friend


A common issue I see with those saying they can’t afford to invest in the stock market is they have no ownership of it. They have no skin in the game and thus don’t see the need to begin investing. Regardless of what it is in life, if you don’t truly want it, it’s going to be difficult to work towards.

Investing in the stock market is no different. Saving for retirement can be such a nebulous thing to those three to four decades away that they can easily put investing in the back of their mind and lose sight of time. The risk is loss of time which means you lose out on growth.

This is why I find it so helpful to have something to work towards to help incentivize myself to push me to reach whatever goal I have. I did this several years ago when my wife and I wanted to go on a cruise for our tenth anniversary.

We wanted to spare no expense and thus needed to save like crazy for it. It may sound silly, but I put a picture of the ship we’d be on at my desk. Whenever I wanted to give up or not work to get a bigger bonus I’d look at the picture and I’d be motivated to start working for it again because I wanted it.

If you’re struggling with wanting to invest in the stock market because a lack of funds, look for ways to not only motivate yourself but push yourself to find ways to find the cash to invest.

Don’t Give Into the Excuse of Lack of Funds


I purposely left this issue to the end of the post. Too many times to count, I ask individuals why they are not investing in the stock market and am often told they feel like they don’t have the money to start. I’ll cede the point that there are some who find themselves in that case and I do not judge that by any means.

However, with apps out there like Stash Invest that allow you to start investing with as little as $5, I find it hard to believe the lack of funds excuse. Stash Invest, for example, gives you $5 when you open an account, so you literally can start with nothing and invest your spare change.

That being said, many are professionals who make a very decent salary but choose (I am largely guessing here) to not make investing in the stock market a priority. Worse yet, they use the belief that they have no money to spare as an excuse to not invest in the stock market.

You can invest in the stock market with little money if that is your situation. I share ways and brokers to use to invest in the market with little cash.

Ultimately, it comes down generally to a lack of priorities and not thinking about saving for retirement and instead only thinking of the present. If you’re in this situation, I ask you to look at your spending habits and look for ways to cut your expenses.

I’ll spare the list, as it has been rehashed here many times before, but look for ways you can trim the fat from your spending and put that money to work for you as opposed to being enslaved to it.

It may seem like a small amount, but finding something as simple as even $40-50 per month to invest in the stock market will do you wonders in the long run. If you want or need help to locate those areas to trim, we recommend Tiller as a resource to help track your spending.

Tiller lets you view all your financial transactions in one location, through automation. Tiller is a Google Sheets based service that automatically pulls all your banking and other financial transactions that helps you categorize your spending and find opportunities to save.

Tiller is free to use for the first month, then $5 per month thereafter.

Whatever your situation is, please take action to get started today as you don’t want to look back years from now wishing you would’ve started earlier.


Additional resource: If you’re looking for somewhere to invest with little money, you can open a Wealthsimple account with no minimum balance. Wealthsimple offers a great way to get started as well as allowing for instant diversification, not to mention promotions when you open a new account with them. 

Open a Wealthsimple account and get up to $100 cash back today!



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I'm the founder of Frugal Rules, a Dad, husband and veteran of the financial services industry. I'm passionate about helping people learn from my mistakes so that they can enjoy the freedom that comes from living frugally. I'm also a freelance writer, and regularly contribute to GoBankingRates, Investopedia, Lending Tree and more.


  • FI Pilgrim says:

    Great article John, I agree that there’s never “too little” to get started with. And for some folks who like to speculate too much, learning how NOT to invest in the stock market is a better lesson to learn when you only have a little to lose!

    • John says:

      Thanks! You bring up a great point that if speculation is your forte then not investing can be a good lesson to learn if you’re starting with little.

  • I like your tip about having a small amount automatically transferred from your bank account to your brokerage account. I already have a small amount transferred each month from my checking to savings, so what’s my excuse for not having a small amount transferred to my investment account? There really isn’t any, though I am guilty of not taking action and actually setting up this transfer.

    • John says:

      That’s exactly how you should view it DC! It’s just like transferring money over to your savings account each month. I like to view it as a bill and just let it do its magic.

  • Troy says:

    I always thought you needed at least $5000 to open an account (at least that’s how much you need at my brokerage).

    • John says:

      That’s a common misconception Troy. Many brokerages, if they do have minimums, are as little as $500 or $1000. Of course, if you plan on utilizing margin then you need $2,000, but many brokerages you can get started with very little.

  • Matt Becker says:

    You can get started at Vanguard with one of their target retirement funds for just $1,000. And there are no commissions to speak of. Most people can save up $1,000, even if it takes some time. Then, like you said, you can automate whatever regular amount you can afford to contribute and you’re on your way. And again, without commissions you don’t have to worry about firs putting money into cash and then later moving it into your actual investments. You can invest right way without dealing with any kind of extra hassle, extra cost or drag on your returns.

    • John says:

      That’s exactly what I’m talking about Matt! Starting with something like that with Vanguard can be a great way to get started and even sticking with them is advisable as they’re hard to beat in a lot of areas.

  • AverageJoe says:

    I like the process of investing automatically because it becomes a bill. If you try to trust yourself to save money every month, you never will. If it’s automatic, you’ll make sure the money is always there to invest when the “bill” arrives.

    • John says:

      Right on Joe! It’s funny how we try and trust ourselves and it generally doesn’t work out. Having that bill mentality is a great way to go.

  • Mr. 1500 says:

    I think that there is only one excuse for not investing. That excuse is if you have enough money to retire without ever earning another dollar from a job. So, if you have attained financial freedom, you may buy Corvettes or travel to Fiji with extra money. Otherwise, save until it hurts.

  • Great post! Investing in stocks could really be great for you and making excuses not to do it is your loss.

  • You make some great points here, John. Everyone needs to start somewhere. Small amounts do eventually grow into large amounts. Anyone can get rich … slowly. The key is to get started.

    Automatic transfers into your investment account are a terrific idea. Soon after setting up automatic transfers, the money isn’t even missed. You become used to the new ‘normal’. In effect, you have begun to ‘normalize’ a disciplined investment approach that is key to wealth building.

    • John says:

      Thanks! I agree, it may not seem like much in the beginning but we all need to start somewhere.

      That’s my exact thought with the automation. You don’t feel it really and can begin to start that discipline of investing for the long haul.

  • Hey John, another great post as usual. I really like the automatic investment options. I think one of the best out there is Betterment. Anyway, thanks for the great read!

  • No Waste says:

    As long as the approach is tempered for risk and well-balanced, everyone should be investing in the market..

    But getting to that well-adjusted point can be very difficult, given human nature.

    • John says:

      I could not agree more – on both accounts. It’s vital to be in the market and it can be difficult to get to that point and balance it well.

  • I think everyone should invest as soon as possible too. Pay the consumer debt off first though. Even $100/month is a good start. It will build up a good habit.

  • Hmm, if someone isn’t investing because they think they don’t have enough money then that sounds like there is a lack of education. Here’s the thing though, if they are that unaware or misinformed, it would be wise for them to learn a bit more about the basics of investing in the stock market before they actually get started. In other words, if someone thought they had to have $10k minimum and then found out they could get started with much less, they should take the time to learn what they’re actually doing rather than blindly picking something.

    • John says:

      That’s a very valid point and one I’ve covered in previous posts. 🙂 That said, you’d be surprised at how often the lack of knowledge is used as an excuse to not start investing. A lot of people allow that to hold them back when they really don’t need to.

  • Having small funds is no excuse nowadays. I know not too long ago it was very prohibitive to invest small amounts due to the high commissions and account fees. Now with the discount brokerages which offer low commission costs and usually no account fees plus most offer commission free ETF and mutual fund purchases. Granted there’s usually limited options on those ETF/MF’s but I haven’t seen one that doesn’t have your broad based index funds. That’s enough to get your feet wet.

    It really all comes down to your mindset and making it a priority. If you want to be in better financial shape in the future you have to do something about it today. That is until the next Powerball jackpot gets up to $250+ million, I guess that’s always an option.

    • John says:

      I could not agree more JC. The online brokerage space really has made it much easier for the everyday retail investor to get into the market even though they may not have tens of thousands of dollars.

      Great point on the mindset! Many don’t have that mindset and they only harm themselves as a result.

  • Okay John, you caught me. I invest in my 401k, but I often tell myself that I have too little to invest on my own. That is totally not true! I guess it comes down to priorities and I just need to do better.

    • John says:

      Ha ha! 🙂 I guess I did catch you. 😉 Seriously though, that’s great that you’re investing in your 401k! You could have quite a bit more diversification going for you and help your long term picture by also starting something like a Roth. It really does not take a whole lot and if you go with some vey low fee index funds you could really do a lot of good.

  • My excuses would be lack of knowledge and lack of time. Upon graduating from university several years ago, setting aside money to use for investing was the last thing on my mind.

    Now its constantly on my mind!

    • John says:

      Those are very common ones, but kudos to you not allowing that to hold you back. It can take time to get started, but that starting is the key.

  • All of my investing is in my 401k and Roth IRA right now. No time to play with stocks as we are on an EXTREMELY tight budget 🙂

    But I LOVE the idea of automating transfers to your brokerage account.

    • John says:

      To be fair, I really am not talking about playing with stocks, but generally being in the market. Whether that be in index funds, mutual funds, dividend paying stocks I was just meaning generally being in the market. That said, it sounds like you’re on the right path with both your 401k and Roth.

  • Some people may feel a little overwhelmed with some of the minimums with these brokerages, but that is why I chose Betterment. I could get in for little money and it is working well. You can then transfer to another one once you get to the minimum level.

    • John says:

      I totally agree Grayson. That said, the beauty is many brokerages have no minimum at all, a simple internet search should direct you to some that have none. That said, a tool like Betterment can be a great option.

  • after my wedding in 12 days, fiancee and I plan on each starting Roth IRA accounts at Vanguard since it’s a low minimum to start a target retirement fund. We’re both super behind on retirement funding but can at least still do a little bit even while paying off my debt.

  • I like the idea of automated investing and agree with Joe; if automated you make sure that there is money every month and that is that. We use a ‘dam’ like system at the moment where accumulation happens in a savings account and then investments are made. Problem with automation can be that it kills creativity and he highest gains are from creative investments.

    • John says:

      He did have a great point and I tend to view it that way as well. That’s a great point about automation possibly killing creativity. Though I don’t know how much you want to be “creative” when investing in the stock market.

  • I think it’s easier to save for an immediate goal like a trip because it’s tangible. What picture could you put up for retirement? An old broke guy panhandling on the street maybe? A case of top Ramen?

    That being said, I don’t really think anyone has an excuse or too little money. Maybe I would hold off until there is a bit of en emergency fund, but not forever. If you are really using every penny you make for essential spending and have nothing left, you need to find a way to make more money or cut expenses. I’ve been reading blogs for a few years now, and if you can’t come up with something, you just aren’t trying hard enough. It comes down to choices vs excuses. It always does.

    • John says:

      Lol, yea, I don’t think a case of Top Ramen would be my ideal picture of retirement. That said, you’re right on Kim – it often does come down to choices vs. excuses.

  • I wonder if some of the reluctance comes from people not truly understanding what they’re buying. Stocks can be a pretty nebulous idea for some people to wrap their minds around and it only gets worse when people don’t feel confident in their own abilities to make investment strategies.
    There’s also the risk that comes with the stock market and you hear about people “losing their shirt” in this or that stock. I wonder if people are judging all stocks the same -as risky and untrustworthy places to plan their future retirement with.

    • John says:

      I think you’re right, to a certain extent, Lindsey. I think a lot of it goes back to education which I think is intertwined with that reluctance.

  • I think one of the best points you made is that people should ‘get some skin in the game’. I think the fastest way to get an education (about anything) is to have some money on the line. You then can’t help but be a bit more engaged in the process. I did a lot of learning before I first started investing, but my learning curve increased exponentially as soon as I’d made my first investment.

  • My excuse not to invest is I need the cash on other projects so the stock market comes last, but I still invest most of my money. I used to have an automatic payment to buy index funds every month and there was no fee, which was great because if you invest $100 a month and have a $7 fee it is hard to make the money back soon.

    • John says:

      I think you’re doing pretty darn good Pauline! 🙂 You’re a very good lesson in what it means to be diversified across many opportunities.

  • I’ve had good luck using Charles Schwab and their low-cost Schwab index funds. You can open each one with a minimum of $100 and they make it really easy to setup automatic investing.

    So you can start with one fund at $100 a month and then work your way up to a few of their different index funds twice a month for whatever amount you want to invest bi-monthly.

    I’ve been really impressed with their customer service, their website and the ease of use in general.

    • John says:

      Right on Brad! I’ve heard very good things about Schwab and their platform. Going the index fund route is not too shabby at all either – especially with the possibility of no commissions as a result.

  • Great article! Quite a few companies also offer DRIPs (or Direct Stock Purchase Plans) where you buy as little as one share directly from say, a Coca-Cola or Disney and avoid the brokerage fees. The enrolment process isn’t the easiest though. But once you purchase your one share, some will let you invest for as little as $10/month and all the dividends are then automatically reinvested. Just another option.

    • John says:

      Thanks Anthony! That’s a great option. DRIPs can be great option, especially if starting out and just looking for companies that you know/use.

  • Hoodgrown says:

    Great article. I’m basically living paycheck to paycheck and I too thought that I could never afford to invest. The new company that I work at provided us with shares and an Etrade account and now I’m really interested in doing more investing.

    Since I’m a techie I’m looking at tech stocks and even more than the money, my barrier to entry is more a matter of grasping this whole investment thing. I definitely have a lack of understanding about how the whole thing works.

    • John says:

      Thanks! That’s awesome you have that set up and should hopefully get you started out with investing.

      I can certainly understand having that barrier to entry as many have that. I’d encourage you to check out some of the free education that Etrade offers. So much of that barrier goes back to education and once you get some it becomes much more understandable.

  • Deanna says:

    The thing I don’t like about investing in stocks is that your profits only go up as long as you have the money tied up in playing the market – it seems like your “gains” are really just a fantasy, because you really only make money if you sell at a higher price than you bought. But if you invest in a stock that loses or even tanks, no one will buy, so you’re stuck with a loss. It’s no different than gambling and I don’t gamble. I don’t like throwing money into some big illusory hope that I will make something. I want to see the money come back in a tangible form that I can access easily.

    PLUS, if you are investing in some kind of money market account or a fund where they do the investing for you, you really don’t know if you are investing in companies that are ethical or outsourcing all their work by child labor in China or India, things like that. It’s a conundrum. I wish I knew what to do because I have just now come into a bit of money and I want to figure out how to get the best return on it. Never ever in my life did I think I would see banks giving no interest on the money I let them use by saving there. Interest rates are so low everywhere, I have no faith in the market or anything else. A friend of mine tells me I should buy gold, as that always goes up (over time), but even that’s been low for quite a while now. I’m beginning to feel like the best place for my money is under my mattress.

    • John says:

      Thanks for your comment Deanna. 🙂 In regards to your comparison to gambling, I’d agree, only if you’re stock picking though. If you’re just randomly picking stocks then you’re opening yourself as an investor up to who knows what. That said, if you do your research then you should be able to find something of value. I understand the feeling that any gains are a fantasy, but the question goes back to what is your perspective? Are you investing with a long term mindset? If so, then you should be able to weather any ups and downs.

      That’s a great point about not knowing what the specific company does. Many feel the same way and there are funds available that look to invest in companies that aren’t doing anything nefarious.

      The rate climate, or lack thereof, is definitely a concern. Many are impacted, to put it lightly, by this and leading them to do things they may not normally do. That said, the money under the mattress feeling is generally not one you should listen to as you’re locking in losing money due to inflation. My encouragement of what to do with the money you’ve come in to is to invest it in some low fee index funds so you can be investing with the market as opposed to trying to get wrapped up in individual stocks.

      All that said, thanks so much for your comment Deanna. I’ve spoken to hundreds, if not thousands, of people in the same basic situation you seem to be in and it’s not always an easy issue to figure out.

  • Evelyn says:

    Thank you for your post. Very informative. Question: I have a traditional IRA with my local credit union and would like to roll it over to a ROTH IRA account with OH.. I have already opened an account with OH, but need to fund it. The balance on that account is very minimal ($725). Do you think this is good enough to open the account? I have no clue of what to do and how to get started. Do you have any suggestions? Thank you.

    • John says:

      Thank you Evelyn, glad you found it helpful! That is a great question and I think it’s definitely enough to open an account with, especially as OH does not have a required minimum balance to open an account with. From there, you could look (generally speaking) at a solid index fund which should help get you started. Of course, it’ll be better to add to it either monthly or quarterly but this’ll give you a good start. Also make sure you take taxes into consideration when converting the Traditional over to the Roth. Thanks for stopping by. 🙂

  • Richard says:

    I thought that having a brokerage account would be too expensive. I also believed that because my major isint business that I would be clueless. But I’m only clueless as a am lazy. However im making changes for a better and a smarter future. With that said I want to say thanks man this article is life changing. Also before I begin as a novice investor any advise, books. I want to be prepared.

    • John says:

      Thanks for your comment and for stopping by Richard. 🙂 That is a common belief that many investors have and it’s simply a myth as there are many brokerages out there that charge nothing to have an account with them. I’ve listed a good number of them on my online brokerages page, which you can check out.

      That said, glad you found this article helpful as my desire is to help investors see that they don’t need loads of money to start investing. Sure, it’s helpful, but not required by any means. If you’re looking for a good book to start with, the one I always recommend to investors is A Random Walk Down Wall St. You can find it on Amazon here –

  • michelle says:

    I am working towards opening up a Roth IRA, but I can’t find anywhere that will accept an opening deposit of less than $2,000. That is my investment as of right now.

    • John Schmoll says:

      There are actually plenty of options at that level Michelle, depending on what your needs are of course. If you’re at or under $1,000 you can open accounts at Motif Investing, Betterment, Etrade, Optionshouse, OptionsXpress and TradeKing. You can also go with Vanguard, but depends on the fund you choose. Feel free to reach out to me if you have any questions on which to choose.

  • rosemary says:

    I am a late comer ie 76 but have little money but loads of time so I am looking at all ways to invest for a relatively short time, well I hope to make 90 at least.
    I only wish I had had all this info years ago, or at the very least had the ability to put tiny amounts away.

  • Chris C. says:

    Im new to the whole stock market investing and im not sure how to go about it the right way my goal is to set up to be well off in10 yeaqrs to live comfortably and not have to be on social securit any more. Any help with info and ideas will be greatly appreciated thx and have an awsome day.

  • Chris says:

    I’ve started a couple of accounts. I’ve been able to diversify with eight stocks with less than $1,200. I’ve used Loyal3, which charges no fees and requires only $10 to get started. They only offer about 65 different companies. I bought a few shares of 3 companies on TradeKing. They only charge $4.95 a trade, and there’s no minimum and no account fees if you make at least one trade a year.

  • john vargas says:

    I am a single father of four , and money is squeezed as it is , I am looking for investments that I can make with very little money to start .. I have read a lot of good ideas and options , but seems like to many to choose from .. I to am starting late in the game , with not much room to leave to chance … Any suggestions ?

    • John Schmoll says:

      Hi John, thanks for stopping by. There are definitely a lot of options out there and know that can be overwhelming.

      Not knowing your entire situation, I’d say it depends on your comfort level with investing and how much control you want to have. If you’re newer to investing and want help managing I’d suggest either Betterment or Wealthfront.

      Both are very low fee and manage the investments for you. They customize a portfolio for you from 10-15 different low cost ETFs and is a great way to start. I’ve done reviews on both, which I’ve put below. I’d be happy to answer any other questions you may have and best wishes.

  • Michael says:

    Nice list. You could also consider Acorns or Stash Invest.

  • Sandra says:

    Great article! I was able to put some cash aside and last year I went to Fidelity and opened an account to start investing. I only invested one time in a CD and the money is just there collecting ‘dust.’ Investment is always on the back of my mind but I don’t know what to do. What advice do you give me, because honestly I keep looking for articles and for someone with no investment knowledge, it gets overwhelming and confusing. Thanks 🙂

    • John Schmoll says:

      Thanks Sandra, glad to be of help. 🙂 I’m not able to give specific advice on my investment options, but I will say that Fidelity has a lot of great (and free) tools to help you get started. They should have something that allows you to input your age, comfort level, goals, etc and provide a list of funds that would be suitable for you. I’d take advantage of that as much as possible.

  • Wally1 says:

    All I can say is WOW! Involving yourself in the stock market as an investment is nonsense, It is no more than gambling. Long term you will lose or if you are lucky, break even. Only invest in something you know. It is possible to invest small amounts (less then $1000) with good returns on many other short term investments where you have control of your money, but I would never put money in the stock market. Too many unethical, morally corrupt people in brokerage firms.

    • John Schmoll says:

      All I can say is WOW!!! Seriously??? So, I guess there are no unethical/morally corrupt individuals in ANY other investing related fields??? To think there isn’t is horribly misguided…at best. Investing in the stock market remains, to this day, one of the best (if not THE best) ways to grow your wealth for the long haul.

      To equate investing in the stock market with gambling also reveals a misconception of what investing in the stock market actually is. If you’re throwing darts at the WSJ to determine what to invest in, sure, it’s gambling. A wise, tempered approach to the market, however, is far different.

  • Wally1 says:

    Wow John, suppressing opinions much. I have invested in the stock market for most of my life and IMHO, it is gambling. The small investor has no chance. All I am saying is that there are more investing paths that have actual tangible assets, Real estate for one. Education is the key and stock firms and advisors intentionally make options confusing, for them it’s about continuous trading and collecting fees. . Most people should invest in things they know, whatever that may be. It always amazed me that people walk into a brokerage firm and hand over their money to someone that most of the time can’t even balance a checkbook or take care of their own finances. Just my observation, based on experience.

    • John Schmoll says:

      Suppressing opinions? I think not. If I were suppressing opinions I would’ve deleted the comment and all others I don’t agree with. 🙂 I was simply responding to your statement:

      “All I can say is WOW! Involving yourself in the stock market as an investment is nonsense, It is no more than gambling. Long term you will lose or if you are lucky, break even.”

      I completely agree that people need to invest in what they know. However, you’re wrong when you say the small investor has no chance. Of course they do, if they know what they’re doing and educate themselves. There are plenty of free resources available to help investors get the education they need to invest well. That’s also not to mention the fact that you don’t need to be an expert to invest in the stock market. Just a little bit of knowledge can go a long way.

      I also agree that a person should not just blindly hand over money to someone at a brokerage and hope for the best. You need to do your due diligence, which I talk about all over the site. However, to think the situation of handing over money blindly to someone who has no idea what they’re doing is only found with the stock market is misguided at best.

      That’s also not to mention that your argument seems inconsistent. You say investing in the stock market is like gambling and fees are rampant. If you feel that way, then why are you even in the stock market?

  • Wally1 says:

    Well John, It all comes down to trust. While I have had mutual funds and stocks for over 30 years I will not trust my hard earned money any longer to brokers and financial advisors that I would not trust to walk my dog. This is prevalent in the finance industry. Wells Fargo is a prime example, as are others. There are much better ways to invest money where you have control. With millennials now reaching thirty, they are not investing, again it comes down to trust. tough times ahead for the financial markets unless they change their modus operandi, which they won’t, a leopard does not change it’s spots. But hey, who am I to give you advice, I’m just an investor……

    • John Schmoll says:

      Actually, it doesn’t ALL come down to trust Wally. Knowledge is just as important, if not more so than trust. Yes, trust IS certainly vital but if you don’t have a basic knowledge then it’s going to make whomever it is much more liable to getting taken advantage of. With knowledge comes the recognition that you simply can’t just blindly hand over responsibility of your finances but that you must take an active role to ensure you know what’s going on.

      Yes, there are definitely bad actors in the world of finance. I never said there wasn’t. However, to think that the ENTIRE world of finance is run/filled with bad actors is simply off base. I’ve spent two decades in the financial services industry and for every “bad” actor out there, there’s a good one. The problem is we never hear about them. It’s the Wells Fargo of the world that get the press, as they rightfully should, but the good ones are out there serving/helping those who need/want help and get few accolades.

      Again, your statement that there are much better ways to invest is simply off base. Are there other good ways to invest? Of course there is. The stock market is not the end all be all, but it is a vital part to building wealth for many.

      Let’s take a look at investing in real estate for example…it’s a great way to build wealth. But, is it free from scandal/scams/fraud/being taken advantage of? No! Just take a look at what happened in Miami, Vegas and other cities the last decade. People “invested” in real estate and they lost everything because of the illicit acts of some in the industry.

      The point is when there’s a way to take advantage of others, human nature dictates that it will happen.

      I’d also take issue with it only being Millennials not investing in the stock market. I speak with people in their 50s and 60s on a daily basis about investing and the prevailing issue, besides lack of funds, is knowledge. Stats bear this out when we see more than half of Americans are not investing in the stock market. Our society does not champion/promote/espouse financial literacy. As a result, partially, we see that many simply don’t know how to invest. Then, they step into the market and have issues because they lack the comfort level that comes with a basic knowledge…leaving them more prone to either being taken advantage of or lose a substantial amount.

      The point in all of this is that it’s important to have a balanced approach to your money. A large part of that balance comes from, again, knowledge – not being an alarmist.

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