If you look at the universe and study the universe, what you find is that there is no evidence that we need anything other than the laws of physics and the other laws of science to explain everything we see. There's absolutely no evidence that we need any supernatural hand of god. -- Lawrence Krauss, World-Renowned Physicist
There is probably no other notion in any field of science that has been as extensively tested and as thoroughly corroborated as the evolutionary origin of living organisms. -- Encyclopedia Britannica
FAITH. No one word personifies the absolute worst and most wicked properties of religion better than that. Faith is mind-rot. It’s the poison that destroys critical thinking, undermines evidence, and leads people into lives dedicated to absurdity. It’s a parasite regarded as a virtue. -- PZ Myers
Religion is the antithesis of science, an anesthetic for the mind that disables critical thought and encourages the acceptance of inanity as fact, and wishful thinking as evidence. -- PZ Myers

Sunday, February 1, 2015

A question about investing I answered at Yahoo Answers: "I'm 16 & want to invest in stocks?"


When would i get the money? 

There's two ways to "get the money". 

You can sell your shares. 

You can keep the shares for a long time (preferably the rest of your life) and "get the money" in dividends. 

I'm 66 years old, exactly 50 years older than you, and I have tried both methods. 

I prefer the 2nd method, living off the dividends (which get deposited into your brokerage account every 3 months). 

The 1st method, buying shares hoping the price goes up so you can sell those shares and make a profit, that's called gambling and in my opinion gambling is a ridiculous way to become wealthy. It's too easy to get wiped out. 

Some ideas for you: 
Charles Schwab is the best brokerage company there is. With them I have both a brokerage account and a checking account. For buying and selling shares the fee is $8.95 which is a good deal. 

Use the 2nd method, live off the dividends. Better yet at your age you should be reinvesting all your dividends into the same corporation that pays the dividends. Charles Schwab will do that for you automatically if you request it (Do it online and do everything else online, humans are not required). There is no fee for automatic reinvesting of dividends so you should take advantage of that.

Buy shares of corporations with a very long history of raising the dividend every year. I recommend AT&T (stock symbol is T). 

Using the method I recommended your dividend income will grow when AT&T increases the dividend every year, and your dividend income will grow when you reinvest the dividends, and also when you can afford to buy more shares. 

Watching your income grow is fun. At first it seems like very little money but if you keep at it you will eventually notice you're making big money. 

The advice I just gave you is priceless. I learned all this the hard way. You just got it for free.

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