About 10 years ago, I learned a simple financial principle that revolutionized the way I think about creating income. You see, our education system teaches income generation through an active method: you do the work and you get paid for it. The concept of a passive or ongoing income may be touched on for those of us who have a finance degree; nevertheless, it is not approached as a personal practical avenue of generating income. Essentially, the goal of education is to know enough and become an expert in how to manage other people’s wealth generated through passive income. The issue is that the wealthy do not make their millions of dollars by clocking in hours every day. They either duplicate their efforts hundreds or thousands of times (business ownership, franchises, royalties, etc.) and/or generate investment income.
The great Warren Buffett advised ‘I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.’ Undeniably, this must be sound advice supported by the success of its author. But wait, there is still one problem. No matter what the market is doing, it takes ‘extra’ money to invest. And when 7 out of 10 Americans do not have $1,000 saved, there is really no extra money. Plus, you surely do not want to miss making your mortgage payment to invest in the stock market. That’s how I felt for so long. If you are like me, you have probably wished dozens of times that you could own a few shares of Apple, Amazon or Facebook. The fact is that at $950+ a share, Amazon stock is not very accessible to the average person. So, should you give up the dream of being an investor? Absolutely not. There is finally a solution for you and me.
When I worked at the bank, one of my clients, a wealthy retired lawyer would contact me to open a CD account every time he had a new grandchild born. Each one of his grand kids, as he told me, had already their college fund figured out. I thought that was very remarkable and a great gift for the kid but also for the parents. What if you could do the same? What if, instead of a Superman figure or a Barbie doll, you could give your nephews and nieces a piece of ownership in Netflix? What if you could now own a piece of Tesla yourself? That day has come and the answer is called Stockpile.
What is Stockpile?
Stockpile is a licensed fractional shares brokerage. Basically, that means that you have the ability to purchase the exact amount of a share that you’d like according to your resources and/or preferences. It’s that easy. Each trade will cost you a mere $0.99. It will literally cost you a trip to the dollar store to invest.
Is it a good idea? I think so. But you should decide for yourself after watching this segment on Stockpile on CNBC’s Mad Money with Jim Cramer.
How to buy shares with Stockpile?
If you have ever bought or paid for anything online, you already know the basics. So, welcome to the world of investing. You can now own fractional shares of your favorite companies with the same simplicity. And if you thought creating an account at Stockpile.com would cost you a fee, I have a surprise for you: opening your account is totally free. How cool is that!?
Here is another video that fully explains how Stockpile works.
Money-Smart Millennials and Stockpile bring you an exclusive incentive to start your investing journey!
Open your free account by using this exclusive link and get a free $5 towards your favorite stocks.
Why should you take a chance at the stock market?
Everybody says, ‘you shouldn’t put all your eggs in one basket’. How many people really get to apply this concept with their finances? Besides the regular retirement accounts established through employment, few people have the means to diversify their sources of income. With Stockpile, the field is now leveled. At a low and affordable price, you open doors for diversification for you and your family. In addition, you tap into a company’s profits and assets. For the average employee, salary only increases when you have a raise or a promotion, regardless of the profits the employer may make even though which you contribute to those profits all year long.
Imagine that you could sell your $45,000 per year position for $50,000 to a new employee willing to take your job. Wouldn’t that be awesome? But of course, that is impossible. However, you have the potential of earning a fortune with the stock market. To make a profit on your investments which have done well, all you have to do is sell your stock. Some corporations will also pay you dividends which are another source of income. It is important to note that all investments carry risk and are not guaranteed. Nonetheless, when savings account returns 1% – if you are very lucky -, it could be worth taking your chances.
Let’s look at an example of how the stock market could play out. In simple and easy terms, here is a case provided by Stockpile.
What stocks can you buy with Stockpile?
You name it. Apple, Disney, Callaway, Columbia, Coach, Dockers, Nike, Audi, Chrysler, etc. Check out Stockpile’s entire list here.
In life, there are two kinds of people. There are those who live for today. There are also those, the dreamers, the barrier breakers who decide to make a change, to alter the trajectory of their financial life. They decide to leave a legacy for the generations to come, a legacy worthy of respect and pride. Who will you be?