I need help from someone who really knows their stuff about stocks.
I have considered investing for a while now and I just started a new job at a financial company that has a benefit of being able to purchase stock in the company at a discount of 5%. It is also a payroll deduction so you apparently don’t have tax consequences for doing so until you sell your stocks and gain income as a result.
I don’t know anything about stocks, but I do know that I believe in the health and growth of my employer and so I think this may be a good idea for a small investment.
My questions:
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Can someone explain to me like I’m a kindergartner how I make money off of stocks?
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I make $18 an hour and I’m working on building up savings. At this tax bracket and financial situation and whatnot, does it make sense to invest in stocks?
2b. Does it make sense to invest in stocks if there’s a good possibility that the only stocks I will invest in are my company’s / does it make sense to invest in stocks if you aren’t going to diversify your portfolio? -
Is it true that I won’t have any tax consequences at the end of the year if I haven’t sold my stocks and made an income? I normally file with TurboTax and I don’t want to have to purchase one of the paid versions just because I bought these stocks.
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I’m only looking to make a small investment for now until I am more comfortable with the knowledge about stocks and investing and whatnot, but at the same time I don’t want to make such small of an investment that it’s pretty much inconsequential. With that being said, I can invest in increments of 1% of my pay to 25% of my pay…right now, that equates to around $14.40 a paycheck to $360 a paycheck, but I’m probably only comfortable with investing between (1%) $14.40 and (2%) $28.80 per paycheck right now. Is it even worth it to invest so little in stocks? Would you invest 1% or 2%?
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Do you have any “Stocks for Dummies” type resources to share with me so I can become more educated on the topic?
Thank you so much for your help!!!!
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