Investment Options for Low Income Earners

Investments are an area about which I seriously am clueless. Therefore, I am always happy with people like Nancy Evans share such a post with us, about great investment options.

Families living on a low income may think it is impossible to invest or save for the future. With self-discipline in spending and receiving knowledge in investments, people can save for a home, retirement, and their children’s education. Small money, over time, can grow into a considerable amount. Most Americans save by opening a checking and savings account. It may take up to a year to save enough money to invest, but it’s worth the wait.

In 2019, the healthcare sector comprising pharmaceutical and medical devices and technology is booming in the stock and ETF exchanges. Pharmaceutical stocks are an investment option on the market most investors include in their investment portfolio for diversification and profitability.
To gain some knowledge of the pharmaceutical sector, study the market of the top pharmaceutical companies in the industry. Pfizer, Merck, and ABBVI are leaders on Wall Street. They are large entities with years of success in the production of drugs, devices, technologies, and vaccines. People with an annual income of $31,000 or lower can plan for the future by investing in the healthcare industry.

Ways to Save

The first step to saving is to record all financial transactions, including income and household expenses. It may require some self-discipline of letting go of entertainment and splurging excessively. Avoid debts, such as credit card and borrowing, which charge high annual percentage rates and interest rates. If expenses are larger than income, there is a serious problem. Consumers may want to consider ways of earning additional income to pay off debts.

The next step is to open a free checking account with a savings account. Selected banks and credit unions insured by FDIC or NCUA offer free accounts with a deposit as low as $50. Out of each paycheck, set aside some money to pay yourself and place in savings without touching it.

How to Invest Wisely

Employers often offer 401Ks to their employees after being on the job for three months up to a year. Some companies match what the employee contributes financially. The investment plan is one of the best ways to save for retirement, education, or buying a home.

It is never too early for investing in children regardless of age. Invest in a college fund to save long-term for their education. The 529 college savings plans offer the benefits of tax exemption and better returns compared to savings accounts.

The stock market is a way to invest and can be profitable if the investments are long term. It requires techniques and the development of strategies to receive a capital gain. Take the time to study the market to learn how stocks work.

Some of the richest billionaires in the world are investors who gained knowledge based on experience. Start with a small investment in the beginning to reduce risks, then watch it grow while monitoring the performance of the stock and paying attention to economic conditions.

Company Stocks to Learn About the Pharmaceutical Sector

The healthcare industry is very diverse and comes with a variety of options in the pharmaceutical sector. Below are three of the most profitable stocks for low-income earners to learn about the growing market.

  • Pfizer is a drug company with a market value of approximately $227.87 billion. The history of Pfizer goes back nearly 170 years. It is one of the largest pharmaceutical companies in the United States.
  • Merck is an American pharmaceutical company that produces drugs and vaccines. The market cap is $197 billion with an annual return of 34.5 percent. Sales reached over $12 billion at the end of the third quarter of 2019.
  • ABBVI is second on the list of profitable and active stocks. The company has a market cap of $116.53 billion. Last year, ABBVI had earnings of $5.7 billion and $32.8 billion in revenue.

The larger companies, including Pfizer, Merck, and ABBVI, are most profitable in returns on investments. With any company trading stock on Wall Street, there are low to high-risk investments. Before investing in any company's stock, look into spending and the reputation of management. Observe other investors’ investments and the sale of stocks. Research brokers to avoid price manipulation with false values. The main objective is to reduce risks as much as possible.

Penniless Parenting

Mommy, wife, writer, baker, chef, crafter, sewer, teacher, babysitter, cleaning lady, penny pincher, frugal gal

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