Successful real estate investors like Ariah-Hossein Rastegar, founder of Rastegar Equity Partner, know how daunting it is for individuals to invest without base capital to begin with. Regardless of how little someone invests; it is still possible to make a profit by following some simple startup advice. Many investors like Rastegar, suggest the following options for beginning investors.
New investors should look at employer sponsored retirement plans as an easy first consideration for investing. The options for employee contributions into a 401K combined with employers offering matching funds makes this option the easiest way to begin investing. Even if an employer doesn’t match employee contributions, this is still a practical starting point for new investors.
According to Ken Griffin, Blackstone Properties, and other renowned investors, respectable online brokerages offer another viable and uncomplicated possibility for those individuals with modest amounts of money for investment. Brokerages like Vanguard, TD Ameritrade, Charles Schwab, and E*TRADE offer opportunities to begin investing at cheap starting rates. These firms often provide a wide selection of commission free exchange-traded funds (ETFs) combined with significantly low commission rates on other investments.
Another recommendation for those investors with more than a few hundred dollars to spare is to consider a dividend reinvestment plan (DRIP). This process allows the investor to invest in individual stocks at a very low rate, but this also means that the investor’s ability to spread out risks in individual stocks will be limited.
However, investors like Ariah-Hossein Rastegar point out that reinvesting dividends will allow new investors to buy small amounts of stock directly from companies and help them avoid volatility in the stock market.