How to Bypass Wall Street and Invest Directly
Mutual funds and ETFs are great ways to quickly build a diversified investment portfolio without buying individual stocks.
But the hefty fees mutual funds charge, often 1%-plus, can nickel-and-dime you to death over the years.
That’s why it’s no wonder most funds can’t keep up with the Dow Jones industrial average.
ETFs offer lower fees, but here’s another simple option that can be even more appealing for individual investors…
DSPPs: A Key Pillar of Successful Investing
Why not bypass Wall Street completely, bypass brokers altogether and invest directly in some of America’s best blue chip dividend stocks?
Direct stock purchase plans (DSPPs) let you do just that. You can buy stock directly from the companies you most want to invest in and cut out the middlemen from the transaction.
In fact, investing in DSPPs is a low-cost way to diversify your investments, with minimums often starting at just a few hundred bucks.
Walmart, Honeywell, McDonald’s, 3M, Home Depot and Microsoft are just a few examples of many blue chip companies offering you the option to invest directly using a DSPP.
Each plan is different, but many companies only require a $250–500 initial investment.
Honeywell, for example, requires an initial purchase of just one share, followed by a low $25 minimum for additional investments.
Microsoft will let you invest directly through their plan with a $250 minimum and additional investments of just $25.
This Is REAL Commission-Free Trading
Another big advantage of DSPPs is that you can make continual, recurring investments in your favorite companies.
In fact, most plans give you the ability to reinvest dividends in more shares. Plus, you can set up recurring investments each and every month by linking your checking or savings account with the plan. This gives you the ability to easily dollar-cost-average your investment in your favorite companies over time.
And best of all… you pay NO brokerage commissions or mutual fund fees.
That said, some DSPPs do have minimal fees of their own, so it pays to shop around, but these fees pale in comparison to the commissions and fees your broker will charge you.
3M, Duke Energy and Exxon Mobil are a few of the hundreds of blue chip companies that don’t charge fees to invest. Now for the payoff.
To access a list of no-fee DSPPs and dividend reinvestment plans (DRIPs) check out this website for starters: www.directinvesting.
And make sure you check in tomorrow. I’ll be covering DRIPs in full to show you how the magic of compounding is your best bet for retiring a millionaire.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch