Expert: Paul Henneman - 4/5/2008

Question
what stocks can I buy for $50.00 and is there some type of good return?


Answer
Jacqueline,
   Thank you for your question! Unfortunately investing with $50 is not really practical. The problem is that there are fees to buy and sell stocks, so if you were to purchase a stock with $50, you would need to see a big return just to get your fees back. In addition, you need to open a brokerage account online to be able to buy and sell stocks, and there is often a minimum to do this.
   I would suggest instead that you open a high yield savings account or money market account to save up your money. Then consider opening a brokerage account when you have a few thousand dollars. INGDirect.com has an account called electric orange that has good interest for this type of savings account.
   Some of the good brokerage firms online that have relatively low fees are www.TDAmeritrade.com, www.Etrade.com, www.Scottrade.com, and www.FOLIOfn.com if you would like to check those out.
   When you are ready, please do not hesitate to follow up with me regarding what stocks or other investments would be good to buy.

Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngne.com