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Article Title:
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DRiP Investing: Helping Beginners Get a Foot in the Door

Article Description:
====================

Are you one of those nay-sayers who feels its simply impossible
to save on the meager salary you bring home each month? Do you
picture those with portfolios balanced in stocks and bonds as
suits-draped Wall Street gurus glued to their Ameritrade account
on a daily basis, trading and balancing risk each morning? Think
again.


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387 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2006-08-09 11:00:00

Written By:     Robert Wade
Copyright:      2006, All Rights Reserved
Contact Email:  mailto:[EMAIL PROTECTED]



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DRiP Investing: Helping Beginners Get a Foot in the Door
Copyright © 2006 Vasrue.com, All Rights Reserved
Written by: Robert Wade
biz_url




Are you one of those nay-sayers who feels its simply impossible
to save on the meager salary you bring home each month? Do you
picture those with portfolios balanced in stocks and bonds as
suits-draped Wall Street gurus glued to their Ameritrade account
on a daily basis, trading and balancing risk each morning? Think
again.

Investing can be easy on just $50 per month, and when you place
your money in Blue-Chip stocks, or those well established and
financially sound, you can earn a higher return than any bank or
savings and loan can offer.

While day trading can be lucrative if you're a finance expert
and know what you're doing, buy-and-hold investing is typically
the safest and most passive investment method available for the
general public. When you buy and hold, you purchase stock in a
company for the long-run, or for more than five years. Once
purchased, you can let the market fluctuate up and down without
worrying about its impact on your stocks. After all, most
Blue-Chip stocks go up in value at a predictable rate over the
long haul.

One of the easiest ways to get into the stock market on a low
budget is through DRiP investing, short for Dividend Reinvestment
Program. Many DRiPs let you purchase shares directly from the
company via an Optional Cash Purchase Plan or Stock Purchase Plan
for as little as $50. You can opt for a one-time, periodic or
ongoing investment, helping you slowly build up a high-return
nest egg.

To start a DRiP, most of us need to make our first share purchase
through a brokerage firm (i.e. Morgan Stanley/Dean Witter,
Schwab, A.G. Edwards, etc.). Just give them a call and purchase
one share in a company you've already researched and found to
offer a DRiP and Optional Cash Purchase plan. It takes a few
months to receive your first statement. When you get your
statement in the mail, it should have instructions on
establishing a one-time or ongoing transfer from your checking
account for incremental shares. (If it doesn't just call the
transfer agent.) Once established, you're well on your way to
building a solid, cost-effective portfolio.

For more information on Dividend Reinvestment Plans or to
research companies offering Optional Cash Purchase Plans, search
Dividend Reinvestment Plan on www.wikipedia.org or your favorite
search engine.





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Copyright (c) 2006 Vasrue.com. All Rights Reserved.

Robert Wade writes about Finance. For more great articles on 
this subject, come back to http://www.Vasrue.com. Articles are 
published weekly on Travel, Real-Estate, E-business, Credit and 
a host of other great topics.

In an effort to support other webmasters, http://www.Vasrue.com 
is offering each article through RSS feed free of charge. Now 
newspapers, ezines, magazines and independent websites can 
effortlessly integrate fresh, captivating content in no time. 
Each article is available for PDF download, RSS feed or browser 
printing.


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