It¹s hard to save money as a parent especially in your baby¹s first year. One way that you can start to save is by setting up a DRIP account. According to Vita Nelson portfolio manager, DRIPs is an affordable way to invest in the market and allows you to put money aside each month. If a DRIP investment is started at an early age, they'll receive a higher return when they're older. In fact, DRIPs has outperformed the Dow Jones and NASDAQ over the last three decades. DRIPs could help pay for the kids college or be part of a retirement plan.
Check out more information about DRIPs and learn how they can help you save for your child's future.
What is a DRIP?
DRIPs stand for dividend reinvestment plan. It’s a simple method of investing by eliminating brokers and buying shares directly from a company, allowing anyone to invest in top tier public companies and save for the future. To invest in DRIPs, you don’t need a brokerage firm. That’s the beauty and the ease of investing in DRIPs. It’s a way for you to invest small amounts of money by yourself without the brokerage fees.
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How to invest in a DRIP?
To invest in DRIPs, you can sign up at www.directinvesting.com to buy a share in your name (or your child's name) and become a shareholder. DRIPs can be established with as little as a single share of stock. Once the account is open, you can invest as little as $25, with no fees if you choose a no-fee company. That means that everyday Americans have the opportunity to become shareholders and invest directly in a company. There are over 1,300 different DRIPs from well-known companies (Johnson & Johnson,3M, etc.).
Who are DRIPs for?
DRIPs are for anyone. It's a great way to save money overtime --especially for those who never thought they could. If you start aDRIP account for your child, at an early age, by the time your child grows up he/she can use it for college or keep on saving for retirement. It's an affordable and feasible way to save money and introduce yourself or kids to investing.
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