Investing FAQ

Short answers to the questions new investors ask most, from how much money you need to start to when to sell, with links to the full wiki pages.

Getting started

Picking stocks

Risk

Taxes

Questions

How much money do I need to start investing?

Very little. Many brokers have no minimum and sell fractional shares, so you can start with a few dollars.

Should I pay off debt before investing?

Usually pay off high-interest debt such as credit cards first; a guaranteed 20% saving beats an uncertain market return.

Is now a good time to invest?

Nobody can reliably time the market. For long-term money, time in the market has mattered more than timing.

Should I buy individual stocks or index funds?

Index funds are the simplest core. Add individual stocks if you enjoy the research and will follow them.

When should I sell a stock?

When the reason you bought it no longer holds, when you need the money, or when a position has grown too large.

How are investment gains taxed in the US?

Gains on holdings kept over a year get lower long-term rates; shorter holdings are taxed as ordinary income.

See also

Last updated September 30, 2026. Education only, not investment advice.