That's what can happen, and that's a conservative estimate. This example assumes that you invest just $1000, one time... never again, and let it sit for 30 years while the market does it's thing. Did you know that the stock market (S&P 500), over it's entire lifetime, has returned an average of 11% per year? Well, now you have seen an example of what time and 11% interest can do.

So where does ShareBuilder come in? Right now... while time is on your side.

HOW IT WORKS
ShareBuilder allows you to invest in the stock market in a dollar-based investing manner. Let's say you want to invest $100 a month in your two favorite stocks which are $50 each per share. With a traditional broker, after he takes his $15 commission (laughably low!), you can only afford to buy one share of one of your two favorite stocks. So after 12 months you would have 12 shares of one stock and have paid $180 in commissions. In other words it's going to take grandpa's inheritance, the lottery, or a very long time to accumulate shares of your favorite stocks, and it's going to cost you a lot more along the way.

With ShareBuilder, our previous example would allow you to accumulate 11.28 shares of EACH of your two favorite stocks after only twelve months (assuming the price per share does not go up). And with ShareBuilder you will only have paid a total of $72 in commissions over the twelve months.

NO MINIMUMS
At ShareBuilder there are no minimum deposits to open an account. At a traditional brokerage, you might have to pony up $500, $2,000, or even $10,000 just to open an account. With ShareBuilder, you can start with as little as $100, $20, or $10, or less (although I would not advise it). And you can invest once a week, once a month, or just once... period. Most people invest a regular dollar amount once a month, like $100 or maybe even just $20. The point is something is better than nothing, and time is on your side if you invest even just a little on a regular schedule.

BUT I DON'T KNOW WHAT TO INVEST IN?
That's ok! ShareBuilder is for the novice and experienced investor alike. After opening your account you will be introduced to PlanBuilder. You answer four easy questions, and it will give you suggestions of what to invest in based on your "risk tolerance." That's investor-ese for how freaked out will you get if the market crashes. Those suggestions may range from individual stocks to index tracking stocks or bonds. ShareBuilder allows you to invest in over 3500 individual stocks, and all of the major indexes and sectors.

TYPES OF ACCOUNTS
In addition to a typical brokerage account that allows you to buy and sell stocks, ShareBuilder allows you to open Custodial, IRA, and ROTH IRA accounts. Custodial accounts are sorta like a trust for your child. You invest for them and they can't touch it till they're 18 years old kind-of-thing. An IRA is like any other, tax-deferred until you're old. A ROTH IRA is where you put money in ($2000/yr. max) as long as you have earned income, it grows, and when you cash out when you're old, you pay no taxes. GOTTA LIKE THAT!

FUNDING YOUR ACCOUNT
This is where it gets fun. There are several ways you can fund your account, with however much or as little as you want. Of course you can write a check and mail it in (another $0.34 wasted... that's 0.0068 shares of a $50 stock, 0.0816 shares after twelve months). You can also wire money from your bank to ShareBuilder, for a fee... and probably another fee from your bank too. You can also have a payroll deduction from your employer sent directly to ShareBuilder. Perhaps, no definitely, the easiest way to fund your account is Electronic Transfer straight from your checking or savings account. You provide the routing numbers, and on the Friday before your scheduled investment (always a Tuesday), ShareBuilder sends their request. Your money shows up in your ShareBuilder account on Monday and is invested on Tuesday. You can set up your account to do this monthly, weekly, or just once in a while.

FEES & COMMISSIONS
There are several options for your investing fees. If you set up an automatic monthly investing plan, each transaction will be $3. For instance, if you want to invest in 5 stocks every month, you would pay a total of $15 per month in commissions. Or maybe just 2 stocks every month, which means $6 per month in commissions. Now, using the first example it would be better to go with another fee option called All-You-Can-Build. This option is just $8 per month no matter how many transactions you make, which becomes cost effective at 3 transactions per month. With a Custodial account the transaction fee is just $2. With all of these options, it doesn't matter how many dollars you invest, $25... $100... $1,000 or how often, the fee structure is the same. Whatever your commission, ShareBuilder takes that off the top of your investment amount, so you always know exactly how much you are investing.

Real-Time trades are also an option with ShareBuilder. The commission is $15.95 per transaction. Also, when it comes time to begin cashing out many years from now, it will cost $15.95 per transaction, but by then you won't care.

Important Note:
Beginning November 1st, their fee structure will be changing. One-time, recurring, and custodial transactions will be raised to $4. All-You-Can-Build will be raised to $12 per month.

AUTOMATIC INVESTING
Here's the secret: A plan that regularly invests money in a diversified set of stocks and/or indexes, is the safest route to building your wealth. Using the average returns of the market over time allows you to put money away with the least risk over time, yet reap very positive benefits. Using ShareBuilder to accomplish this couldn't be simpler.

Two key things that are small in nature but build over time aid this process immensely. When you purchase your shares and receive those partial shares (.4732), don't dismiss them. They may look small and inconsequential but they add up over time as well. That's something you can't do with a traditional brokerage. The other key is reinvesting your dividends, which ShareBuilder will do for you at no charge. You have the option with ShareBuilder to reinvest your dividends or to let the cash build up in your account. Reinvesting even the smallest dividend over time adds up quickly. In the beginning when you are reinvesting $2.00 and the stock costs $50, you don't get much. However, twenty years from now, that may be $2,000 instead. That will buy you 40 FREE shares vs. 0.04. BIG difference!

These two keys along with automatic investing allow you to build a lot more than you think. It all adds up. Over time, building with partial shares, reinvesting your dividends, adding small amounts of principal over time, the stock price going up, and maybe even a few splits... who knows what you'll have... probably a lot more than you think.

OTHER STUFF
There is a Research section on the website. It is provided through a partnership with another company. I do all my own research, and from what I've seen their research section is pretty weak, although the "What If I Had Invested..." tool is pretty cool. I have not needed Customer Service either, so I can't comment on their effectiveness. I have been able to find all the answers to my questions on the website. You can also Link accounts together so that you don't have to log out and back into another account if you have more than one. So if you and your wife both have accounts they can be linked together for faster access.

SUMMARY
My case is this: I have a ROTH IRA set up for myself and one for my wife. I invest in mine in lump sums, like $500-1,000 at a time, and my wife's is set up for $100 per month direct from her savings account. That allows us to invest up to $2,000 per year in each account ($2,500 next year) as long as we are working. We plan to continue this as long as we are able. We have invested in individual stocks and index tracking stocks. Our plan is to have well over $1,000,000 in those accounts when we retire. And with a ROTH, when you reach 70.5 years old and start cashing out, YOU PAY NO TAXES! That's our favorite part. Thank you ShareBuilder.

Recommended: Yes