It is the time of year again. I need to set my target and goals for 2007, both money and family wise.
Finance:
1) Grow our net worth to $700,000. It is a very ambitious goal because it means it will be an increase of $150,000 and a lot can depend on the stock market's performance. It has been very good to us for the last few years and I am not sure the market growth will be sustainable but I will certainly try my best to increase our net worth. I will again fully fund our Roth IRA and my 401K and his TSP to the highest allowable amount.
2) Hopefully we will buy a house we like. It is not a goal we absolutely have to achieve but it is something we'd like to have.
Family:
1) Grow our family to three members instead of just two now. It will probably take a lot of work as well as luck. But again we will definitely work hard on it!
Here is to another joyful year.
Friday, December 29, 2006
Thursday, December 28, 2006
Housing Report
CNN Money has the Nov housing report out "Existing home sales rise, prices fall" in which it is indicated that housing market has stabilized but will likely stay flat for a while until current home inventories are cleared.
This is good news for us since we are looking to buy a new/bigger house. We are not actively searching, just going to open houses on the weekend and not involving our realtor until we are absolutely sure that the time has come for us to act on it.
We are tracking the housing market and interest rate trend closely to get an idea of market direction so that when the time does come, we can be better informed about the biggest financial decision of our lives.
Right now, our price range will be around $400,000 for a four bedroom, 2-3 bathroom house with at least one car garage (I really want two car garage but it is not a deal breaking requirement).
In DC area, that is not much but we don't want to over stretch ourselves with mortgage payment, insurance, tax and regular maintenance.
This is good news for us since we are looking to buy a new/bigger house. We are not actively searching, just going to open houses on the weekend and not involving our realtor until we are absolutely sure that the time has come for us to act on it.
We are tracking the housing market and interest rate trend closely to get an idea of market direction so that when the time does come, we can be better informed about the biggest financial decision of our lives.
Right now, our price range will be around $400,000 for a four bedroom, 2-3 bathroom house with at least one car garage (I really want two car garage but it is not a deal breaking requirement).
In DC area, that is not much but we don't want to over stretch ourselves with mortgage payment, insurance, tax and regular maintenance.
Wednesday, December 27, 2006
2007 Roth IRA
I started to plan for funding 2007 Roth IRA yesterday. The total will be $8000, $4000 each for me and my DH.
His IRA is with Fidelity and I have two funds in there, Fidelity Balanced and Fidelity Value. I plan to DCA $166 into both funds every month starting Jan. That would come up to $3984 at 2007 year end, close enough to $4000.
For me, my IRA is with Wells Fargo brokerage account, I plan to buy EUROX (US Global Eastern European) in Jan. I sold $1000 of PSPFX (US Global Natural Resources Fund) yesterday, with new cash of $4000, I should be able to meet the minimum investment requirement of $5000. I have been debating whether to buy this fund in a taxable account and then DCA into every month or putting it in an IRA. At the end, I decided with its high turnover, volatility and huge increase in the last couple of years, it is better to put it in a tax advantage account so that I don't have to pay much in tax although I would lose the benefit of investing more than $5000 in 2007. If the performance will be stellar again in 2007, I can always add more in 2008 IRA. For now, I want to be cautious considering how high and hot this fund has been going!
His IRA is with Fidelity and I have two funds in there, Fidelity Balanced and Fidelity Value. I plan to DCA $166 into both funds every month starting Jan. That would come up to $3984 at 2007 year end, close enough to $4000.
For me, my IRA is with Wells Fargo brokerage account, I plan to buy EUROX (US Global Eastern European) in Jan. I sold $1000 of PSPFX (US Global Natural Resources Fund) yesterday, with new cash of $4000, I should be able to meet the minimum investment requirement of $5000. I have been debating whether to buy this fund in a taxable account and then DCA into every month or putting it in an IRA. At the end, I decided with its high turnover, volatility and huge increase in the last couple of years, it is better to put it in a tax advantage account so that I don't have to pay much in tax although I would lose the benefit of investing more than $5000 in 2007. If the performance will be stellar again in 2007, I can always add more in 2008 IRA. For now, I want to be cautious considering how high and hot this fund has been going!
Tuesday, December 26, 2006
Finally Back from In Laws House
We made it home. Yeah!
It was a quite stressful driving from WV. Because we had to change our plan, leaving Sunday afternoon instead of early Monday morning due to weather change. We learned on Sunday that it would be raining and possibly icy Monday morning which would make driving through the mountain roads dangerous. So we had to leave early, right after a late lunch with families.
All in all, it was a good Christmas holiday. We spent about $45 in gas round trip which is total more than 600 miles. We usually write down the exit number and the gas price along the highway while we drive pass, and with that, we can plan our gas fill up schedule to stop at the gas stations with the cheapest price. Together with cruise control and speed limit of 65 or under, we got about 35 miles per gallon out of my baby car.
We didn't spend any money buying food on the way either. We packed some banana, water, cookies and two sandwiches on the way to WV. On the way back, we just had a huge Christmas lunch so we weren't hungry at all, besides, we took some leftover hams and potato salad with us.
I am glad that the holiday is over!
It was a quite stressful driving from WV. Because we had to change our plan, leaving Sunday afternoon instead of early Monday morning due to weather change. We learned on Sunday that it would be raining and possibly icy Monday morning which would make driving through the mountain roads dangerous. So we had to leave early, right after a late lunch with families.
All in all, it was a good Christmas holiday. We spent about $45 in gas round trip which is total more than 600 miles. We usually write down the exit number and the gas price along the highway while we drive pass, and with that, we can plan our gas fill up schedule to stop at the gas stations with the cheapest price. Together with cruise control and speed limit of 65 or under, we got about 35 miles per gallon out of my baby car.
We didn't spend any money buying food on the way either. We packed some banana, water, cookies and two sandwiches on the way to WV. On the way back, we just had a huge Christmas lunch so we weren't hungry at all, besides, we took some leftover hams and potato salad with us.
I am glad that the holiday is over!
Thursday, December 21, 2006
Tax Cut Software
Like Boston Girl, I also receive a copy of Tax Cut software in the mail recently. From last year's experience, I know it is not free. So I just put it on the shelf without even opening it. We got ours last year from Best Buy, I believe it was $25 but I had a $10 gift card from my old boss for last Christmas holiday and then Best Buy had a $15 rebate (as a gift card), so it was basically free. And I still have the $15 Best Buy gift card! I am saving it for our next Tax Cut purchase, hopefully they will have another rebate program :)
But thanks Boston Girls for alerting everyone about the $10 rebate coupon hidden inside the software. I found it last night and will definitely keep in case I would need it. So with my $15 gift card and this $10 coupon, I think this year's tax software will be free as well! How exciting. I just love free stuff!
We use the deluxe version of Tax Cut. I use it because we have quite a few investments. But I think this year, before I buy the deluxe version, I want to research how much advanced it is compared to the basic standard version. If basic version can do the job, I may be able to get it free on here. Any one what is the difference between these two? Thanks!
But thanks Boston Girls for alerting everyone about the $10 rebate coupon hidden inside the software. I found it last night and will definitely keep in case I would need it. So with my $15 gift card and this $10 coupon, I think this year's tax software will be free as well! How exciting. I just love free stuff!
We use the deluxe version of Tax Cut. I use it because we have quite a few investments. But I think this year, before I buy the deluxe version, I want to research how much advanced it is compared to the basic standard version. If basic version can do the job, I may be able to get it free on here. Any one what is the difference between these two? Thanks!
Tuesday, December 19, 2006
Rite Aid Rebate Check
We received our Nov Rite Aid rebate check in the
mail yesterday. It is $12.47! I love Rite Aid's Single Check Rebates program. It is great way to save money and get household/personal products for free or very small price.
It works like this. Every Saturday we get ads for Sunday paper. And Rite Aid ads are usually among them as well. We usually look for free after rebate stuff like the one on the left. You can see the stuff animal on the lower left corner was 4.99 before rebate, but only 99c after that. Once we buy the products for original price, couple days later, we go online to Rite Aid website , find the products on the rebate list, log on, enter the date, store number and register number on your receipts. By the end of every month, we log on to claim our monthly rebate checks and it will show up in our mail box around the 20th.
We got a lot of free stuff out of this program,such as toothpaste, dishwasher detergent, shampoo, electric outlet, body wash, light bulbs etc.
I got this great info from http://www.stretcher.com/. It is another of my favorite websites about all kinds of ways to save money and shop smart.
mail yesterday. It is $12.47! I love Rite Aid's Single Check Rebates program. It is great way to save money and get household/personal products for free or very small price.It works like this. Every Saturday we get ads for Sunday paper. And Rite Aid ads are usually among them as well. We usually look for free after rebate stuff like the one on the left. You can see the stuff animal on the lower left corner was 4.99 before rebate, but only 99c after that. Once we buy the products for original price, couple days later, we go online to Rite Aid website , find the products on the rebate list, log on, enter the date, store number and register number on your receipts. By the end of every month, we log on to claim our monthly rebate checks and it will show up in our mail box around the 20th.
We got a lot of free stuff out of this program,such as toothpaste, dishwasher detergent, shampoo, electric outlet, body wash, light bulbs etc.
I got this great info from http://www.stretcher.com/. It is another of my favorite websites about all kinds of ways to save money and shop smart.
Monday, December 18, 2006
Christmas Gifts
I never understand the idea behind giving gifts on Christmas. I mean, I understand that shows appreciation. But showing appreciation doesn't have to mean hundreds of dollars of gifts. Small, thoughtful things we do for families, friends and each other are more meaningful than gifts wrapped in shinny and expensive papers.
This year (and last), we spent about 50 on gifts to family members. The way we do it is there are 7 of us immediate families (me, my in-laws, my husband, his sister and her husband and their young kid). We will buy a gift our nephew and for the rest of us, we draw names and who ever we draw, we buy gift for that person, maximum amount spent will be capped at 20. So me and my husband will buy gifts for two other family member plus our nephew. They told us what they wanted for Christmas and with the list, we go shopping! Since it is capped at 20, the maximum we spend will be 60. Gifts are not hard to find since we know what they want. Most of the stuff we got from Walmart, if we can't find it, the family member will buy it him/herself and we will reimburse him/her.
To me, that is absolutely a hassle free way to celebrate the holiday spirit but not over spend. I think just by spending time with each other for the holiday season is joyful enough. Compared to the national average spending of 800, we truly have a frugal holiday.
This year (and last), we spent about 50 on gifts to family members. The way we do it is there are 7 of us immediate families (me, my in-laws, my husband, his sister and her husband and their young kid). We will buy a gift our nephew and for the rest of us, we draw names and who ever we draw, we buy gift for that person, maximum amount spent will be capped at 20. So me and my husband will buy gifts for two other family member plus our nephew. They told us what they wanted for Christmas and with the list, we go shopping! Since it is capped at 20, the maximum we spend will be 60. Gifts are not hard to find since we know what they want. Most of the stuff we got from Walmart, if we can't find it, the family member will buy it him/herself and we will reimburse him/her.
To me, that is absolutely a hassle free way to celebrate the holiday spirit but not over spend. I think just by spending time with each other for the holiday season is joyful enough. Compared to the national average spending of 800, we truly have a frugal holiday.
One of My Favorite Bloggers
I have a favorite blogger "Boston Girl" and I go to her blog every day. I enjoy her writing style and her great finds/deals. It is from her blog that I find out about all the free samples from Walmart! And she is part of the inspiration behind the creation of my own blog!
Today I read that her blog has gotten noticed by Womenswallstreet and they invited her to write on the website about personal finance! How exciting.
That is exactly something I dream of myself, being a personal finance writer, helping women becoming independent and educated in all aspects of personal finance, be it home buying, insurance, tax or investment.
Now I am more determined to blog more, hopefully one day, I can help more women to be whom they want to be by being financially independent.
Today I read that her blog has gotten noticed by Womenswallstreet and they invited her to write on the website about personal finance! How exciting.
That is exactly something I dream of myself, being a personal finance writer, helping women becoming independent and educated in all aspects of personal finance, be it home buying, insurance, tax or investment.
Now I am more determined to blog more, hopefully one day, I can help more women to be whom they want to be by being financially independent.
Friday, December 15, 2006
Metro Fare Increase
Oh, no, not again! Yes, dear, metro has proposed another fare increase in three years. A lot of people are not happy with it. Me neither.
The first thing came out of my mouth after I heard it was "Time to start driving, honey!". But of course, to make my point (or not), I did a little spreadsheet calculation.
Right now, my husband spends about 32.5 a week riding metro. That is the cost of a weekly pass which will be cheaper than the actual daily rail fare. And we pay 3.5 a day for parking. So that is 50 a week and 200 a month for both metro and parking for him only. The good part is as a fed employee, he gets 105 transportation allowance every month. So that cuts down his monthly metro ride to 95. Not bad compared to driving since it will cost us about 120 for him to drive to work. And we can cut down on wear and tear on my baby (my car). And we can get by with only one car which also saves on car payment, insurance, gas and maintenance.
If according to the proposed rate increase, parking will go up to 4.25, and we don't know how much weekly pass will go up to. Let's assume the pass will be 36, so weekly metro ride with parking will be 57.25 or 229 (round to 230) per month. So with transportation allowance, his monthly ride will be 125. If the gov increase allowance from 105 to 110 per IRS publication, that it will be reduced to 120. That is about even with driving and all things considered, we will still be riding metro to work and support the environment:)
The first thing came out of my mouth after I heard it was "Time to start driving, honey!". But of course, to make my point (or not), I did a little spreadsheet calculation.
Right now, my husband spends about 32.5 a week riding metro. That is the cost of a weekly pass which will be cheaper than the actual daily rail fare. And we pay 3.5 a day for parking. So that is 50 a week and 200 a month for both metro and parking for him only. The good part is as a fed employee, he gets 105 transportation allowance every month. So that cuts down his monthly metro ride to 95. Not bad compared to driving since it will cost us about 120 for him to drive to work. And we can cut down on wear and tear on my baby (my car). And we can get by with only one car which also saves on car payment, insurance, gas and maintenance.
If according to the proposed rate increase, parking will go up to 4.25, and we don't know how much weekly pass will go up to. Let's assume the pass will be 36, so weekly metro ride with parking will be 57.25 or 229 (round to 230) per month. So with transportation allowance, his monthly ride will be 125. If the gov increase allowance from 105 to 110 per IRS publication, that it will be reduced to 120. That is about even with driving and all things considered, we will still be riding metro to work and support the environment:)
Thursday, December 14, 2006
Electric Bil for Nov
We got our electric bill for Nov. We are kind of anxious to see that because we want to know how much we spent because of the kitchen leak repair. The two days' of 24/7 running of a humongous dehumidifier didn't really help the matter. It came up to 80 dollars. Much better than we thought. We usually spend about 45-50 around this time of the year with heater running and weather turning cold. We use electricity for everything in our small coop house and most of the time, we use space heater to heat up just one room where we stay the most, in morning it is living room and at night, the master bedroom. And we turn of everything, including the TV and computer when not in use. Even in the coldest days such as Jan and Feb, out power bill rarely goes pass 90. So we save quite a bit in utilities.
To keep heat inside the house, we bought those plastic window covers from Wal-mart like 13 dollars for 9 window wraps. We tape them to the windows and since it is clear, we can still see lights. We can feel it does make a difference in blocking winds because when it is windy, we can hear the plastic rustling. And we also put a huge rag (almost like a blanket) by the door to block out cold wind coming into the house from the door crack. I
Simple and inexpensive things like that will save bundles on electricity bills especially since power companies are raising rate every year, sometimes significantly such as 30-40%!
To keep heat inside the house, we bought those plastic window covers from Wal-mart like 13 dollars for 9 window wraps. We tape them to the windows and since it is clear, we can still see lights. We can feel it does make a difference in blocking winds because when it is windy, we can hear the plastic rustling. And we also put a huge rag (almost like a blanket) by the door to block out cold wind coming into the house from the door crack. I
Simple and inexpensive things like that will save bundles on electricity bills especially since power companies are raising rate every year, sometimes significantly such as 30-40%!
Wednesday, December 13, 2006
House Hunt Decision
We decided not to go forward with the house we saw on Sunday. It is a very sad decision for us but we think it is prudent for us not to buy such a big house and mortgage until we know more about the infertility treatment situation.
I entered all our payroll information and monthly expenses in a spreadsheet to show my husband what our monthly cash flow would be like. Assuming we get the big house and big mortgage, with our current salary and saving the maximum for his gov TSP and my 401K, after deducting mortgage/property tax/home insurance and average monthly living expense, we only have about 2000 left every month. If we include any future baby expense and day care, we will probably have only 500 left for savings with a baby. Although there is no way for sure that we will have a baby, we'd like to complete our family no matter what either by infertility treatment or adoption. Both options cost quite a bit of money. So right now, I think it is safe for us not to rush into a big house and over stretch ourselves in the future.
It saddened me that we couldn't afford the house we really like although we really work hard to save. But I am sure there will be more houses in the future for us to consider and we will eventually find the house we like and can comfortably afford.
I entered all our payroll information and monthly expenses in a spreadsheet to show my husband what our monthly cash flow would be like. Assuming we get the big house and big mortgage, with our current salary and saving the maximum for his gov TSP and my 401K, after deducting mortgage/property tax/home insurance and average monthly living expense, we only have about 2000 left every month. If we include any future baby expense and day care, we will probably have only 500 left for savings with a baby. Although there is no way for sure that we will have a baby, we'd like to complete our family no matter what either by infertility treatment or adoption. Both options cost quite a bit of money. So right now, I think it is safe for us not to rush into a big house and over stretch ourselves in the future.
It saddened me that we couldn't afford the house we really like although we really work hard to save. But I am sure there will be more houses in the future for us to consider and we will eventually find the house we like and can comfortably afford.
Tuesday, December 12, 2006
FSA 2006
I think we just spent the last 14 for 2006's FSA plan. We elected 260 for my husband's plan for the whole year. And we went to get our teeth cleaned today and the 14 cleaning cost is just enough for us to claim the last of the FSA reimbursement.
Next year, we elected 6500 for FSA! I know, shocking, it is a huge amount. And I know we may need more but I think 6500 is prudent as far as I can see.
Why such a big amount? Because we need to have infertility treatment, the most expensive one, IVF and it aren't cheap! Good thing my husband's insurance plan covers 50% of it and assuming we only need one cycle of IVF, that would cost 4000 for us and I plan to do acupuncture to help with all the drugs and treatments. And acupuncture is not covered by insurance.
It is very sad that couples facing infertility can't have children because they can't afford it and insurance company won't cover since they don't consider it a disease. MD is one of the few states in the nature that mandates coverage. I applaud such good state benefit. I think MA and IL are two other states that mandates all or some infertility coverage.
Next year, we elected 6500 for FSA! I know, shocking, it is a huge amount. And I know we may need more but I think 6500 is prudent as far as I can see.
Why such a big amount? Because we need to have infertility treatment, the most expensive one, IVF and it aren't cheap! Good thing my husband's insurance plan covers 50% of it and assuming we only need one cycle of IVF, that would cost 4000 for us and I plan to do acupuncture to help with all the drugs and treatments. And acupuncture is not covered by insurance.
It is very sad that couples facing infertility can't have children because they can't afford it and insurance company won't cover since they don't consider it a disease. MD is one of the few states in the nature that mandates coverage. I applaud such good state benefit. I think MA and IL are two other states that mandates all or some infertility coverage.
Monday, December 11, 2006
Food Cost Reimbursement
Our coop has agreed to reimburse us the electricity fee for two day's use of dehumidifier while fixing the leak in our kitchen. But unfortunately, food is not covered. We spent about 70 on food eating out while the kitchen was being renovated. And home insurance won't cover it as well since we have a 500 deductible. Oh well, I guess we just have to bear the cost ourselves. Thankfully it is not a great amount and we used a lot of special deals and coupons to shave some expenses. Still, it is an unexpected and unbudgeted expense I hope we don't have to incur very often!
Matthews China Fund
I bought Matthews China Fund (MCHFX) this morning. I have been thinking about buying a China fund for a long time. Not because all the China funds have been on fire this year, but because I think it is a lasting theme to have for long term investment. I want to be cautious though since it has had such a great run the last several years. So I started low, buying just the minimum of 2500 and will DCA 250 into it every month. It is a small part of my portfolio, not even 1% and I am comfortable with it. Even if the market tanks right now, my loss will be minimum and I can buy more with DCA.
House Hunt
Sorry about missing so long. I have been busy with cleaning up the house and enjoying my now clean and nice kitchen! God it felt so good to be able to cook in my own house and have a hearty home cooked meal every day! I think I won't go out to eat for a long time!
We have been looking for a new house on and off for almost half an year now. Our coop has enough space for two of us, but it only has one bathroom. And let me tell you, sometimes in the morning, it is quite a struggle for my husband to wait for me coming out of shower so that he can do his business:) I love my little three bedroom coop townhouse, but sadly it is time to get a better house. Besides, I really want a garage so that my baby car won't have to suffer outside under the snow when winter comes.
Our house budget is around 400,000 to 450,000 (yeah, we live in DC metro area, so what can we do?!). That is actually on the low end of the price range for the house we want to have. So we have to sacrifice a little bit by getting a smaller/older house. We know the area we want to live so the only thing to do now is to find the right house. We have a realtor, but we are not actively searching since we want to wait a little bit until market has settled down before we plunge in. We are not in a hurry, we want to buy the right house.
So we happened to see two open houses this weekend. Price for both are 500,000. Both has four bedrooms and two car garages. I am shocked to see such a huge difference inside though! One house is very well maintained, with clean walls and nice finished basement, a beautiful deck in a Cul-de-sac. I love it. The other one I don't even want to finish walking around the house, it is that bad, walls are dirty with finger prints, electric outlets are within covers, it is dreadful. And it is 5000 dollar higher than the nicer house. I can't believe it. Doesn't the realtor do her homework?! If I have an open house, I'd make sure everything is nice and neat! Who wants to buy a half a million fixer upper?
My husband and I are not sure whether we will go with the nice house though. We will crunch some numbers tonight and see whether we can afford the mortgage and still save for other purposes such retirement and college for our future kid.
I will keep you informed!
We have been looking for a new house on and off for almost half an year now. Our coop has enough space for two of us, but it only has one bathroom. And let me tell you, sometimes in the morning, it is quite a struggle for my husband to wait for me coming out of shower so that he can do his business:) I love my little three bedroom coop townhouse, but sadly it is time to get a better house. Besides, I really want a garage so that my baby car won't have to suffer outside under the snow when winter comes.
Our house budget is around 400,000 to 450,000 (yeah, we live in DC metro area, so what can we do?!). That is actually on the low end of the price range for the house we want to have. So we have to sacrifice a little bit by getting a smaller/older house. We know the area we want to live so the only thing to do now is to find the right house. We have a realtor, but we are not actively searching since we want to wait a little bit until market has settled down before we plunge in. We are not in a hurry, we want to buy the right house.
So we happened to see two open houses this weekend. Price for both are 500,000. Both has four bedrooms and two car garages. I am shocked to see such a huge difference inside though! One house is very well maintained, with clean walls and nice finished basement, a beautiful deck in a Cul-de-sac. I love it. The other one I don't even want to finish walking around the house, it is that bad, walls are dirty with finger prints, electric outlets are within covers, it is dreadful. And it is 5000 dollar higher than the nicer house. I can't believe it. Doesn't the realtor do her homework?! If I have an open house, I'd make sure everything is nice and neat! Who wants to buy a half a million fixer upper?
My husband and I are not sure whether we will go with the nice house though. We will crunch some numbers tonight and see whether we can afford the mortgage and still save for other purposes such retirement and college for our future kid.
I will keep you informed!
Friday, December 1, 2006
DRIP Investment
For those who are not familiar with term. DRIP is called Dividend Reinvesment Plan. It means that you can buy a stock directly from the company istead of from a broker and reinvest your dividend to buy more company stock. For any investors with limited amount of funds for investment in stocks, this is a wonderful tool for starting to learn and accumulate stocks.
Wall Street Journal had a great article yesterday written by Janathan Clements about how investors with a small fund can still start to get into the market. In which he mentioned DRIP investment and also highlighted several great companies offering cheap and easy ways to get started.
I checked into all those companies mentioned and found three that were very interesting. They are Paychex, Pepsico and Kellogg. They are all household names and provide stable businesses which are defensive plays when the market turn south.
I bought all three of them yesterday through their individual stock transfer agent. To find this information, search each company's website and click on the "Investor Relations" tab and you will find all the information about who is the transfer agent, how to enroll and fee structures.
I have about seven other stocks with the same investment plan and it has worked wonderfully for me over the last three years. The beauties of it is you can start with just 250 and invest every month with sometimes as little as 50 or 100 and it will grow, with dividend reinvestment and capital appreciation, to quite a sizable portofolio. And you really don't have to do anything, everything is automactic. And if you are careful to choose the right plan, there are no fees associated other than the 15 fee to sell shares. If you don't even need to sell, you don't have to pay a dime. What a great way for young and small investors to get involve in the stock market, growing rich with the big and wellknown companies of America.
Wall Street Journal had a great article yesterday written by Janathan Clements about how investors with a small fund can still start to get into the market. In which he mentioned DRIP investment and also highlighted several great companies offering cheap and easy ways to get started.
I checked into all those companies mentioned and found three that were very interesting. They are Paychex, Pepsico and Kellogg. They are all household names and provide stable businesses which are defensive plays when the market turn south.
I bought all three of them yesterday through their individual stock transfer agent. To find this information, search each company's website and click on the "Investor Relations" tab and you will find all the information about who is the transfer agent, how to enroll and fee structures.
I have about seven other stocks with the same investment plan and it has worked wonderfully for me over the last three years. The beauties of it is you can start with just 250 and invest every month with sometimes as little as 50 or 100 and it will grow, with dividend reinvestment and capital appreciation, to quite a sizable portofolio. And you really don't have to do anything, everything is automactic. And if you are careful to choose the right plan, there are no fees associated other than the 15 fee to sell shares. If you don't even need to sell, you don't have to pay a dime. What a great way for young and small investors to get involve in the stock market, growing rich with the big and wellknown companies of America.
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