Do you want to be “an investor” but you don’t have the cash? Do you want to save for retirement or a trip around the world – but you can’t see how you’ll reach your goal?
If you answered “yes”, a DRIP account – a Dividend ReInvestment Plan account – might be the solution.
The Main Thing
Here’s the main thing you need to know about DRIP accounts – you can start one for $250.00 or less with minimum follow up investments of between $10 & $100.
After you establish the account you can, if you choose, add money once a month.
Automatic Monthly Investments
Computershare, the DRIP account administrator for my accounts, offers an automatic bank draft for your regular monthly investments. I use this feature for two of my three accounts, HAS (Hasbro) & CTL (CenturyLink). Both companies require minimum follow up investments of $25 - I investment the minimum each month.
Infrequent At Will Investments
In my third DRIP account, SJM (JM Smucker), I occasionally make a follow up investment. Follow up’s can’t be more frequent than once a month – I add money far less often.
Bank Drafts vs. Mail-In Checks
You can still use the bank draft system even if you aren’t making regular monthly investments. Or, you can mail-in paper checks with the convenient “deposit” form provided by Computershare with the monthly account statement.
More - follow up investment information - to come in the next post.
Link to Topics in the Special Report - How to Get Rich Slowly DRIP by DRIP