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Opening up a Sharebuilder account.

October 18th, 2006 at 05:29 am

A few minutes ago I opened up a Sharebuilder account. I have been wanting to do this for about a year now but never had the nerve to. Finally I looked at my budget and decided to start with $50 a month. My gym membeship is giong to be cancelled soon so I will use that money to fund this. I figure it is a better use of the $50. Smile Can any other Sharebuilder kin out there help a sister out with some advice?

5 Responses to “Opening up a Sharebuilder account.”

  1. jacquelynrose Says:

    My friend does Sharebuilder and her advice always was to me, once I decided to get started in Sharebuilder is BUY LOW AND SELL HIGH.

  2. LuxLiving Says:

    or to put it another way...

    "Buy Cheap and Sell Dear" - Hettie Green, at one time one of the world's wealthiest women

  3. Kevin Says:

    Ah, the 4 basic fundamentals of business / financial planning:

    * Buy Low
    * Sell High
    * Collect Early
    * Pay Late

    Of course, paying late does not apply if it results in buying high (i.e. paying extra interest). Conflicts are resolved on a case-by-case basis.

  4. baselle Says:

    Now for some real advice. Smile

    Check to see what the trading fee is - $4 I think for Sharebuilder. Try to buy enough stock each time so that the $4 represents under 1% of your transaction costs. I know that it means - ulp - at least $400 worth of trading, but your alternative is really not being efficient with your bucks. (4/50 = 8% which would be an icky load if it were a 401K) You want your money to work for you, not for Sharebuilder. If you have to, save your nickels and dimes through ING to get to your 400$. Or see if you can store $ in Shareholder in a money market fund, if the interest rate is decent.

    I also assume that your Sharebuilder account is a taxable account. Try to limit your trading - at least make sure you hold stock for at least 1 year, so that you get the long term capital gains rate. Now if you bought a dog of a stock and you need to sell, best not to hold it for a year. Sell dear, but wait a year. Smile
    When you first start out buying stock, buy quality companies. Remember that you are learning here.

    Warren Buffett: "Rule 1 - Don't lose money. Rule 2 - see Rule 1."

  5. divinemsn Says:

    I opened up a money market account to begin with. I will be puttingin $50 a month to start with. Thanks for the comments everyone!

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