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Q: Do we need a minimum amount of money to invest in the stock market?

Diana says...
First and foremost, never invest money that you can’t afford to lose. It takes less than five years of hindsight to realize the “no-guarantees” nature of the market. A minimum investment of $2,000 is considered a yardstick starting point. Otherwise, service fees or commissions will take a big chunk out of your in­vest­ment. That said, there are slow-­and-steady ways to be­gin investing. Financial institutions can set up a monthly investment plan for purchasing products such as mutual funds. In some cases, you can start investing for as little as $25 a month.

Diana Cawfield is an award-winning financial writer with more than 10 years experience. Send her your questions here.