The number of investors and savers have doubled over the last few years, but it’s still not enough says Jeff Yastine, Editor of Total Wealth Insider. There is an easier way to invest in stocks, what Yastine calls the Kennedy Accounts. Follow Jeff Yastine on Medium.
Buying Directly Into A Company
Most companies offer potential investors the option to buy shares directly, which allows both parties to bypass the broker and thus, the associated costs. Yastine says to start by visiting the company website where you are interested and looking for the “investor” page. For example, cereal giant, General Mills allows small investors to buy stock directly, with a minimum investment starting at just fifty dollars, and Xerox Corporation only requires a minimum of ten dollars.
Directly Investing Your Money
A former broker and strategic investor, Jeff Yastine has taken advantage of these DRIPs to build up an impressive portfolio of well-known stocks. They are called the Kennedy Accounts because, President John F. Kennedy approved a specific law, allowing companies to offer stock certificates to investors and bypass Wall Street brokers. This opened the door to small time investor to purchase stocks for minimum amounts. It’s still not advertised today, but for those companies that participate in direct stock options, you’ll find it on their websites.
Yastine points out that there are two types of dividend investment plans (DRIP). The only difference between them is the initial enrollment method in the plan. Many plans do not allow you to invest using these DRIPS, unless you already hold stock certificates in that company. For example, if you want to participate in the Coca-Cola DRIP, and do not own Coca-Cola shares, the company will prevent you from enrolling in the plan.
The second type of DRIP is usually called a “direct investment plan”. In this type of DRIP you can buy your first shares through the plan. Minimum amounts to open an account vary, but there’s a budget to meet every need.
Editor, broker, trader, and financial writer, Jeff Yastine has an established reputation as an investment strategist. With years of experience, he’s been empowering people with unrivalled analysis on the stock market. Yastine currently works at Banyan Hill Publishing Company as Editorial Director, and has been a featured guest on CNBC and the Bloomberg Network.
Yastine holds a English Lit degree from the University of Florida and has worked in finance/ investments for over a decade. Watch this video on Youtube.