How to Invest on a Shoestring

You can begin to develop a portfolio of common stocks with $100.00 or less and avoid high commissions. Direct Stock Purchase plans are operated by many companies, many allow electronic enrollment. This article will provide information on several companies that offer no fee plans and links to enroll.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Access to internet
• Personal Information
• Bank Account Information or checkbook

1. Plan Links and Company Names Access the 3 links provided in the attached image. These are shareholder service providers that administer investment plans for companies.
2. Review the plan materials for each of the companies listed. None of these plans require an initial setup fee or have investment fees.
3. Select the plan that best meets you needs and enroll electronically by following the prompts provided on screen.

Tips & Warnings

• If you are married, it is wise to enroll both you and your spouse as JTWROS (Joint Tenants With Rights of Survivorship). Each person will own the stock equally and in the event of the death of either, ownership passes automatically to the survivor. (Hopefully this will not happen, but it is better to be prepared.
• Fully read the plan materials so you understand how it works and what is required.
• The first amount shown in the image is the minimum amount you need to invest to enroll in the plan.
• The second amount shown is the minimum amount required to make additional investments.
• Plans that have the word AUTO in the last column have higher minimum investments but will reduce the required minimum as long as you enroll in automatic monthly deductions from a bank account. (Example: Blacks Hills requires $250 to start OR 10 consecutive monthly automatic deductions from your bank of $25.00)
• Reinvest all dividends.
• Many other plans exist, those shown are the lowest costs with no fees.
• No investment recommendations are being made. It is up to you to decide if investing in any company is suitable for your situation.
• Research the companies being considered so you understand what they do and how they operate.
• Any dividends paid are taxable.
• Although these plans are low cost, all plans charge sales fees when you sell shares. Make sure you understand what those fees are BEFORE you enroll.
• Carefully read the plans Prospectus and all related material before you enroll.