How Much Money Do You Need to Invest in Stocks?

Series Summary

Investing in the stock market can be an unnerving adventure. It takes a strong stomach to watch the ups and downs on Wall Street. People clamoring to get in on the action may ask themselves how does one get on the inside track? With online trading, it has become easier. But this is not the only option available for investors to jump in feet first. Brokerage firms also house professionals that give advice for investing in stocks and bonds. Join the roller coaster that is the stock market! In this free video series, get advice on the many ways to invest in the stock market from an experienced financial specialist. First, he explains how much money is needed to invest, what the age requirements are and investing in individual stocks. Next, he talks about how to open an online brokerage account, investing in overseas stock and investing in the futures market. Finally, learn about government and agency bonds, preferred stock and common stock.

Video Transcript

"Hello, my name is Philip Beningoso, I'm an investment professional, and today I'm going to be talking about, how much money do you need to invest in stock. Now this is a little bit of a double edge sword question, because to invest in stock at a discount brokerage firm, would require something around, 500 or a 1000 dollars to open up the account, and you can trade there for approximately anywhere between 15.99 and 9.99 per stock trade. But again, this doesn't really answer this complete question, because to invest in stock, per se in a different format, that would be understanding how to put a complete portfolio stocks together. For yourself, that would weight the market and cover all sectors and asset allocation to the market. Let me start with saying, to really create a portfolios around 250,000 dollars, to buy a sequence of securities, 20 or 30 different securities covering all the sectors. Sectors being financial type sectors, or technology, energy, and then allocating that portfolio in a correct manner, that would give you a aggressive, maybe for somebody who's in their 20's, or 30's, they could have more of an aggressive type of a portfolio, that would be 80 percent equities, and 20 percent fixed income. Somebody that is a little older, somebody that wants to balance out their portfolio a little more, may go with a more moderate portfolio, somebody that has 60 or 40 percent fixed income, and either 40 or 60 percent equity, depending. As you mature, and get into your retirement type years, you might want to take on less risks, so your full account won't fluctuate as greatly, that way you'll would have more asset allocation that would be geared toward a conservative portfolio, something along the lines of 80 percent fixed income, and 20 percent equity. The information provided here, is for general informational purposes only, and should not be considered an individualized recommendation or personalized investment advice. Any investments or strategies mentioned here may not be suitable for everyone. My name is Philip Beningoso, and I'm an investment professional."