Ready to take action? You've learned about stocks, bonds, and funds - now let's discover how to actually buy them!
You'll need something called a brokerage account. Think of it as a special bank account designed specifically for buying and selling investments.
Engagement Message
Name one feature a brokerage account has that a regular checking account doesn't.
There are two main types of investment accounts to consider: taxable accounts and retirement accounts (like IRAs).
Taxable accounts let you access your money anytime but you pay taxes on gains. Retirement accounts offer tax benefits but limit when you can withdraw.
Engagement Message
For a goal 30 years away, would a taxable or retirement account likely serve you better?
Opening a brokerage account is surprisingly simple! You'll typically need your government-issued ID, tax identification number, and bank account information for transferring money.
Most major brokers let you open accounts online in about 10-15 minutes. It's often easier than opening a regular bank account.
Engagement Message
Mention one document or piece of info you should have ready before clicking "Apply."
When choosing a broker, focus on these key factors: no account minimums, commission-free stock and ETF trades, and good customer service.
Many top brokers now offer $0 minimums and free trades on most investments. Avoid brokers that charge high fees for basic services.
Engagement Message
In your own words, why is commission-free trading such a big deal for new investors?
Look for brokers that offer fractional shares - this lets you buy pieces of expensive stocks like Amazon ($3,000+ per share) with just $10-50.
Also check that they offer the low-cost index funds and ETFs we discussed in previous sessions.
Engagement Message
Explain how fractional shares could benefit an investor who only has $100 to start.
