I just opened a fidelity account so i can put money in and forget it. I see a lot of people talk about VOO and other funds that track the S&P500, and that’s what i would like to invest in. I don’t really make enough money to buy those shares as frequently as i would like to. Should i still invest in fractional shares as often as i would like to?
Buy Fidelity index funds, e.g. FXAIX.
Paxton said:
Buy Fidelity index funds, e.g. FXAIX.
Noted
Buy what you can, when you can, and turn on drip (dividend reinvestment). It’ll be a slow accumulation, but it’s better than not at all.
Fin said:
Buy what you can, when you can, and turn on drip (dividend reinvestment). It’ll be a slow accumulation, but it’s better than not at all.
Thanks for clarifying. I’ll keep this in mind!
SPLG and SCHD. Both low cost ETF thats still below $100 per share.
Peyton said:
SPLG and SCHD. Both low cost ETF thats still below $100 per share.
Most of the big Schwab ETFs recently split so individual shares are 1/3 to 1/4 of what they cost a few months ago. SCHX is pretty close to tracking S&P500 (not exact, cut close) and now clocks in at $23.71.
Check out a mutual fund like swppx. That lets you invest $1 at a time and set up automatic investments.
Nothing wrong with fractional shares. I place my orders in terms of dollar value so I’m picking up fractional shares anyway.
You should just search for ETFs that represent the stocks you want. If you search for ETFs for SP500 for example, you will see that SPYG is about 87/share SPLG is 70/share VOO is 548/share and SPY is 596/share. You can do this for many ETFs and different companies will offer essentially the same ETF at a different price. Some brokers also allow you to buy fractional shares so you don’t have to buy a full share of the ETF. Be careful with fractional shares though because some brokers charge higher fees.
@Dezi
And SPYD which is the high dividend yield version of SPY and tracks, I think its, top 83 dividend paying stocks and has a higher dividend payout but at the cost of not tracking as high as SPY since its not tracking all 500 and is just under $46 a share. As others have said though, invest now and frequently if you can i.e. monthly and if you are buying ETF don’t try to time it just keep buying what you can. Try to invest the same amount every month if you can then it becomes a habit.
Buy whatever amount you can. There’s no minimum restriction. …even if its $10 a month…always invest monthly
Youtube finance bros will convince you into thinking than everyone can become multi millionaires by investing their coffee change into the stock market. I’m sorry but it’s not true, if it was then they wouldn’t be making youtube vids for ad revenue. You CAN build wealth through investing though but there’s an order of operation you need to consider. One important part being income, you need positive income to be able to invest, if you can’t invest at least $500 a month then you need to shift your primary focus on improving your income (job growth, education, whatever it takes). The other two pieces of wealth building (besides income) is staying out of debt and investing… A lot of popular youtube investors who show their portfolio will show that 70-80% is actually money they’ve slowly contributed over time and only about a small portion is growth. Any growth is great because of compounding but you need to be able to constantly contribute in order to see any meaningful gain.
I can buy slices for 5$. I do NOT use drip, I am trading with no fees so I reinvest my dividends myself.
If I’m not mistaken Schwab has SWPPX that you can start from 1 dollar
Maybe an S&P500-tracking mutual fund? You can start with as little as $1 and add to it whenever you’ve got some spare bucks to throw in. Or just save up and buy ETF stock shares when you can. There are pros and cons with either that you can research.
Go to the transfers link on fidelity and select the recurring transfer link. Select the investment transfer choice and select SCHB or SPLG as possible ETFs to weekly invest in. You can increase your investment amounts whenever you like. Heck, you can set it so that you could invest every weekday into the same ETF.
The first step is to find a job that has benefits and retirement. The second step is to live comfortable without debt. Car debt is the worst kind. Then you should comfortably covet rent/mortgage depending what stage of life you’re in. Once your comfortable, the extra money will come and you can tuck that away into fractional shares. After a while, you’ll see a small chunk. And then that small chunk grows into a wad if you’re consistent.
It’s not important how much you invest but how much you have accumulated. Give that to your kids and let them repeat that. Your kids future as well as their kid future will be brighter with a bunch of opportunities that you didn’t experience.
Buy what you can when you can, automate whenever possible