5 Common Investing Myths

Myth 1: A large amount of money is needed to invest.

You need a lot of money to investIt is true that you need money to invest especially if you are buying stocks. But you don’t need a large amount of money to start a business or to invest in stocks. Company retirement plans gives room for you to be able to invest immediately you start working with a minimum of 1% of your income. You can start an IRA if you don’t have access to 401(k). The minimum you can invest in Vanguard 500 fund is normally $3,000, but it will be reduced to $1,000 if you open an IRA. Small investments, when done diligently and consistently will really multiply. If you invest $40 for one month or $480 in a month for 40 years, you would have realized about $19,000 (this is just an illustration). There are some things you have to consider before you invest for retirement Instead of thinking about the quantity of money you must have before you can invest.

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