I’m a novice investor with about $1,000 to invest. Am I better off opening an account with a brokerage firm or should I invest in DRIPs?
A I think you are probably better off buying a few DRIPs directly. You could follow the portfolio suggestions I laid out in the previous response to the individual who had $50,000. A few additional suggestions for a portfolio are Walgreens (800-286-9178), the drugstore chain, and Equifax (888-887-2971). Both allow initial investments directly. One reason I prefer DRIPs to a brokerage account for newcomers is that money at a broker, especially an online broker, may tempt you to trade too often. And if you trade even just once a week, you’ll see your $1,000 erode quickly. It is not easy to trade stocks with DRIPs. Thus, your money will stay put and grow for you.
Related Questions
- I m a novice investor with about $1,000 to invest. Am I better off opening an account with a brokerage firm or should I invest in DRIPs?
- I’m a novice investor with about $1,000 to invest. Am I better off opening an account with a brokerage firm or should I invest in DRIPs?
- I’m thinking about opening a brokerage account. If the brokerage goes bankrupt or closes, will my account be protected?
