Question about starting out

[pmbhuntress]

I have already gotten into a program called News max, dividend machine, but I have to say that is based on the big guys, it talks about good stocks, and the ones that are best to invest in if you want to have a good dividend check monthly, but it also states that you have to invest like $5000 into it. What about us little people living off a limited income, that would like to work our way up. I am on disability due to an accident that messed up my back, I now though, need to find ways to invest even $20 a month to make some extra cash, so if my husband passes on, or if he has an accident and cant work I can pay the bills. Its hard when you have a limited income.

What is the best place for me to do that, would it be with penny stocks? I have looked into different penny stocks, but I have to wonder if they are worth it. But then again with the little bit that I have to invest it may be worth it.

Any advice would help.

Hilda

[greencat]

Originally Posted by pmbhuntress

I have already gotten into a program called News max, dividend machine, but I have to say that is based on the big guys, it talks about good stocks, and the ones that are best to invest in if you want to have a good dividend check monthly, but it also states that you have to invest like $5000 into it. What about us little people living off a limited income, that would like to work our way up. I am on disability due to an accident that messed up my back, I now though, need to find ways to invest even $20 a month to make some extra cash, so if my husband passes on, or if he has an accident and cant work I can pay the bills. Its hard when you have a limited income.

What is the best place for me to do that, would it be with penny stocks? I have looked into different penny stocks, but I have to wonder if they are worth it. But then again with the little bit that I have to invest it may be worth it.

Any advice would help.

Hilda

Save you money and buy monhtly on a inexpensive online broker.

I would research the company with vigor before I started to invest. Remember , you will be doing this over the long haul and its not going to be fast. Reinvest you dividends back into dividend paying stock. It should double every 7 years or you are doing somthing wrong.

Stock List: Dividend Paying Stocks | Bizcovering

[greencat]

'Dividends' are taxed at the 15% rate. It's best to hold interest producers in an IRA, IRA SEP, etc, tax deferred account, which is a HUGE advantage.

[BadThad]

Originally Posted by greencat

'Dividends' are taxed at the 15% rate. It's best to hold interest producers in an IRA, IRA SEP, etc, tax deferred account, which is a HUGE advantage.

You also have to watch out for the foreign, monthly dividend payers. They look great on paper, but the foreign taxes eat you alive and you cannot avoid the taxes even in an IRA type account.

Your best bet might be something easy like ShareBuilder. There's a limited number of stocks, but it's easy and they automatically reinvest your dividends for you.

As a newbie, stay AWAY from penny stocks unless they trade on a major exchange (i.e. NASDAQ, NYSE, etc). More than likely, you'll just end up losing your money.