all right if you want to get started investing and you can only come up with
maybe $100 or so in this video I'm gonna show you exactly how I would do it where
I would do it because you can't do this a lot of different places and I'm gonna
show you a really dangerous mistake that you should avoid as a new investor as well
and you're gonna need at least $100 in this one so start looking if you don't have it already
so unfortunately it's been challenging for smaller
investors to kind of get into the investment game because a lot of places
you actually need a good amount of money to get started so a lot of mutual funds
require that you have a thousand five thousand or even ten thousand dollars to
get started and then additionally most online brokers and offline brokers won't
allow you to buy a partial share of a stock so if you wanna buy a stock that's
actually kind of expensive you have to come up with that much money just to buy
one share I've been looking for a place where I can buy fractional shares and
the good news is that I've found one I'll have it linked up down below so
what this means for you and I is that even if we don't have a whole bunch of
money we can buy shares of Berkshire Hathaway we can buy shares of Apple we
can buy shares of Google and so I recently opened an account with this
company because I've been so excited and I'm actually gonna be funding my Roth IRA
in there and I'll just show you a little bit what this process is like
now at this point I should mention in another video I did about How to get
Started Investing even if you have no money and this is kind of a really cool
alternative to kind of get you started investing but I'll have that linked up
above as well as down below in the description now before we get into the
specifics of how I would invest $100 if that was all I had and I just want to
get started I have to say I am NOT an investment advisor we actually have a
Directory of Financial Advisors if you want to hire one over on our website I
hae it linked up down below you can check that out if you want but if you
were looking to do this yourself I will tell you what I did and this is not
financial advice to you I don't know your situation but you can take it and
run with it and do what you wish
all right so I have been a student of Warren Buffett for a long time now I've
read a few books written about him he hasn't written many himself but he has
written his annual reports and he shares a lot of his wisdom in there and if you
don't know who Warren Buffett is he's one of the richest men in the world he
has been in the top five richest people probably for the last I don't know
twenty thirty years and on top of that he has made his wealth by making smart
investment choices so when Warren Buffett gives investment advice I think
it's worth listening and when people ask Warren Buffett what advice he has for
new investors to get started investing he doesn't say buy my stock which he
could it's a great investment but instead Warren Buffett says that you
should consistently buy an S&P 500 low-cost index fund and just in case you
think he's just blowing smoke and this is just what he's telling the media but
not the real thing in Warren's will he actually has these instructions for his
wife on how to invest his money after he dies he says to put 10% of into
short-term government bonds and then the other 90% into an S&P 500 low-cost index
fund and he recommends Vanguard so again I've met some really smart financial
advisors out there and you may have as well but I've never personally met
anyone who's been as good with their money as Warren Buffett has and when he
gives financial advice like this and specifically for his wife after he dies
I just feel like that's something that we have to pay attention to and so this
is what I'm going to be doing right now I'm gonna walk you through the process
of how I'm doing this with this new awesome tool that I found
alright so here we are in my account and I'm just gonna show you what's going on
so I opened this account a couple weeks ago and I funded it and since this is my
Roth IRA I have contributed my amount that I can contribute for the year which
is $5,500 and so even though this video is about how to invest a hundred dollars
the process is gonna work exactly the same way and so the way these guys do
things is that you build a portfolio so you pick all the stocks or the mutual
funds or index funds or whatever that you want and then they just
automatically invest the amount of money that you have in cash into those
different investments so in my case I'm just gonna do what Warren Buffett
recommends and just put it a hundred percent into the S&P 500 low-cost index
fund and Van guard funds like he recommends I've been
invested in those in years in some of my other accounts and they're just great
and I just love the way Van guard does things so that is what we're gonna be
doing today so from here all I need to do is come over here to edit my
portfolio and right now I have this Berkshire Hathaway in here but what I'm
going to do is change that so you just add as many different stocks as you want
so if you want to add different stocks you can just add them to it just kind of
add them to the mix you can set the percentage that you want and so you know
in our case if we're only investing $100 what that's gonna do is it will invest
$10 over the Amazon ten to Apple and then we're gonna move this down to 80
over to Berkshire Hathaway if we were going to do that but that's not what I'm
gonna be doing today I'm gonna move this out and I'm going to find just search up
here Vanguard SP 500 and we're gonna go ahead and click Add this to the basket
and I'll just click it down here just make sure it's in there
we're gonna change this to 100 and then we're gonna remove Berkshire and then
we'll click Save confirm our changes and since I already have my account funded
so after opening the account I had to transfer money over here from my bank
and since that's are taken care of and this auto invest on thing is already set
that way it will automatically invest all the money that's in my account into
whatever index funds that I've selected and you can change this setting if you
want but this is how I'm going to leave it so anytime I transfer money over this
account it's going to automatically invest it in this S&P 500 fund for me
and so I'm just gonna go ahead and get it started though just by come on over
clicking buy and then I need to type in the amount I want and what that's gonna
do is clear out all of my cash balance and then buy that and then I can just go
ahead and click confirm and then now during the next trading window it's just
gonna go ahead and make that purchase for me it's survived a pending buy of
fifty five hundred dollars and that will be invested in this main guard S&P 500
and it's really that simple so I love this platform I love the ability to like
I said buy fractional shares because if you
look at let's just go ahead and look over here let's look at Google for
example it's a really expensive stock so right now it's $1,200 a share so if you
wanted to buy a share of Google at almost every other online broker you
would have to have $1,200 but if you're using this service M1 here you can buy
it for really $10 $20 you can be buying a small fraction of Google and be
getting some of their returns without having to buy the entire stock now there
are handful of questions that I had before I got started and you might have
the same question so I was kind of walk you through a few of those so one of the
first is like what does it cost to use and this platform is free to use which
is kind of amazing they actually made this change about a year ago so they
used to charge fees but now they've since gotten rid of them and the way
they make money I'll flip that over here and so again here it talks about how you
can invest for free using them you don't to pay any Commission's in which this is
like almost unheard of with online brokers there's another one I knew of
called Robin Hood which offers free trades but it's really really rare that
you find an online broker who offers free trades and so they do have fees for
a whole bunch of random things like if you need paper copies or if you're gonna
do wire transfers and things like this you know these are all normal things
that you know any kind of bank or brokerage firm charges fees for but in
general for most of what you and I are probably gonna be doing with the service
we're not gonna pay any fees which is just awesome
in another question I had was about security that's always something I'm
concerned about when I'm dealing with my money when I'm dealing with any sort of
online account and they are SIPC secured and then protected up to five
hundred thousand dollars and that's a form of insurance that basically a lot
of investment firms use so just like you have FDIC for banking that kind of
insurance SIPC is kind of for investments and they also have
everything encrypted which makes me feel good and then they have two-factor
authentication which is kind of the current standard that most websites use
for keeping things secure and basically what that means is that you have to have
your cell phone on you in order to log into the account because they're gonna
text you a code or that type of thing and so it's really a great way to make
sure your account stays secured and I honestly just love how simple it is and
how they keep it real really simple I've worked
a lot of different investing platforms and a lot of them tend to get too
complicated and just have too many things going on tour it's a little bit
overwhelming and I really like how these guys just keep it really simple and
clean so anyway that is the gist of it if you have any questions about them
that I can answer I'm happy to answer those down in the comments below and
we'll have a link to them up above so you can check them out or down in the
description below if you want to go check them out as well now the mistake
that many new investors make and that Warren Buffett actually again cautions
new investors against is buying individual stocks especially when you
don't know what you're doing and especially when you actually need the
money for something in future because when you buy a stock you are becoming a
part owner of that company and if that company happens to go under you can lose
all of your money I have done this with certain stocks that I've bought in the
past it actually can't happen now on the other hand if you were buying an index
fund or a mutual fund the likelihood of you losing all of your money is very
slim now we all know the upside of buying the right stock at the right time
you can make tons a ton of money and it's you're less likely to have those
kind of games with an index fund or a mutual fund but the downside risk is a
whole lot better now if you found this helpful I'd love it if you could leave
us a like down below to let me know and if you're new to our channel my name's
Bob Lotich and what we do here is we talk about practical ways to kind of put
more money in your pocket like this but then we also talk about some of the
timeless biblical principles on how to manage our money wisely because after
all what's the point if we're not managing it wisely so if that resonates
with you feel free to subscribe I'd love to stay connected and in this next video
I'm going to point you to one that I referenced earlier in the video where
you can get started investing with no money and so even if you don't have your
hundred dollars yet you should check out this other video because it'll show you
how to get started investing even if you don't have any money yet