I think the simple step of how to buy a stock can be a bit overwhelming if you’ve never done it before. New companies are trying to make it easier to get started using technology to make the purchase more approachable. Stockpile is simply one of the best way to get started building wealth because you can buy shares in dollar amounts without worrying about having to purchase whole shares.
It’s not for you if you want to buy & sell shares, otherwise known as trading. But I believe most people who don’t know much about investing confuse what they see on the TV about people buying and selling shares to make money by active trading, with building long term wealth. Building wealth involves the accumulation of long-term savings in investments that grow over time. You don’t have to buy and sell those investments in order to build wealth. You just have to do a good job accumulating, and then let dividend reinvesting and compounding work to your advantage.
Other companies that make investing approachable
Another of my favorites is Stash, but they’re more about ETF’s and not the dividend paying stocks that are so near and dear to my heart.
Robinhood is what a traditional brokerage would be if it were to start from scratch. But, Robinhood is still overwhelming. Buying a share, sounds scary.
How to buy a stock if you’ve never invested before
Wouldn’t it be easier to buy $100 of stock, rather than some number of shares? Yeah. Doesn’t sound much easier, but if you’ve never invested before, or if that $100 really means something, it can be enough to prevent one from getting started.
That’s where Stockpile comes in.
I’ve just come across these guys, and as far as I can tell, they’re to Computershare, Wells Fargo, BNY Mellon, or Broadridge Financial Services as Robinhood is to Fidelity or E*Trade or other online brokerages.
With Stockpile (and Computershare, et. al) you don’t have to buy as specific number of shares. You can simply buy a dollar value of stock. So, if you have $100 to invest, you don’t have to worry about the price of a share or buying a whole number of shares. With Stockpile you can simply buy $100 of stock. Cool, right? Yeah, and really important for people just getting started. So important that I dedicate the whole fourth part of my book walking through a step-by-step plan for making your first investment.
I’ve gotten in touch with Stockpile and they tell me they can reinvest dividends, you just have to email them to turn the feature on. I’ll take it! Go ahead, have a look. I’ll be sure to try them out myself, and report back once I do.
If you do try them out, why not let us know what you bought in the comments?