Cut-to-the-Chase Actions
Let’s summarize the 5 key one-size-fits-all steps to investing without diving into anything math-related: 1. Begin with a direct stock purchase plan (DSPP) and/or index funds passively managed by a robo-advisor. M any companies offer dividend reinvestment plans (DRIPs) that further simplify the investment process. DRIPs automatically buy more shares on your behalf with your dividends. If you reinvest dividends, you can supercharge your long-term returns because of the power of wealth compounding . This is dollar-cost averaging (DCA) in action. 2. Focus on asset allocation using the money you won't likely need within the next 5 years. 3. Y ou'll need a specialized type of account called a brokerage account to actually buy stocks, mutual funds, and ETFs. The majority of online stock brokers have eliminated trading commissions while offer ing the ability to trade on foreign stock exchanges. Ther...