Funding Your Account

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What You’ll Learn

• How much money you should invest first
• How to link your bank account securely
• Different ways to transfer money (ACH, wire, check)
• How long transfers take
• What to do while waiting for money to arrive
• Common funding mistakes and how to avoid them
• When you can start investing after funding

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Why This Matters

• 💰 Your brokerage account is approved but empty
• 🤔 You’re not sure how much to invest first
• 🏦 You need to transfer money from your bank
• ⏰ You want to start investing TODAY
• 😰 You’re nervous about making costly mistakes

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The Big Question: How Much Should You Start With?

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The Short Answer

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The Realistic Answer

• Large enough to feel real (not just “play money”)
• Small enough that a mistake won’t devastate you
• Allows diversification across 2-3 investments
• Psychological sweet spot for learning

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The Wrong Answers

• You’ll keep waiting and never start
• Missing out on compound interest NOW
• Time in market > perfect amount

• Too risky for a beginner
• Need emergency fund first
• Should keep 3-6 months expenses in cash

• Too small to feel meaningful
• Won’t learn proper risk management
• Brokerage fees may eat returns

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The Smart Starting Amount Framework

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Step 1: Calculate Your Emergency Fund Gap

Monthly expenses: $________
× 3 months minimum = $________
× 6 months comfortable = $________

Current savings: $________
Emergency fund gap: $________ (if negative, build this first!)

• Option 1: Build emergency fund first, then invest (safest)
• Option 2: Split contributions (50% emergency fund, 50% investing)
• Option 3: Start with tiny amount ($100) while building emergency fund

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Step 2: Determine Your Initial Investment Amount

• Invest: $50-$100
• Strategy: Single diversified ETF (VTI or VOO)
• Focus: Learning and building habit

• Invest: $200-$500
• Strategy: 2-3 diversified ETFs or start building portfolio
• Focus: Diversification basics

• Invest: $500-$1,000
• Strategy: Diversified portfolio (3-5 holdings)
• Focus: Portfolio construction and rebalancing

• Invest: $1,000-$2,000
• Strategy: Full portfolio (stocks, bonds, international)
• Focus: Asset allocation and long-term strategy

• Invest: $2,000-$5,000 initially
• Strategy: Systematic approach, dollar-cost averaging
• Focus: Tax optimization, multiple accounts

• Preserves flexibility
• Allows learning with smaller stakes
• Reduces emotional impact of losses
• Can add more after gaining confidence

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Step 3: Choose Your Funding Strategy

• Transfer initial amount
• Invest it all at once or gradually
• Good for: Starting out, specific goal amount

• Set up automatic monthly transfers
• $100,$250, $500, or$1,000/month
• Good for: Building wealth systematically, reducing timing risk

• Start with initial lump sum ($500-$1,000)
• Set up automatic monthly deposits ($100-$500)
• Best of both: Start now + build consistently

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How to Link Your Bank Account

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Method 1: Instant Bank Linking (Plaid) - Fastest

1. Select “Link Bank Account”
2. Choose your bank from list
3. Enter your bank login credentials
4. Plaid securely verifies account
5. Account linked instantly

• ✅ Instant linking (done in 60 seconds)
• ✅ Can transfer money immediately
• ✅ No need to find routing/account numbers
• ✅ Secure (Plaid is trusted by major banks)

• ❌ Not all banks supported
• ❌ Some people uncomfortable sharing bank login

• Plaid is secure and encrypted
• Used by Venmo, Coinbase, Betterment
• Never stores your password
• Read-only access to accounts

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Method 2: Manual Bank Linking - Traditional

1. Select “Link Bank Account Manually”
2. Enter bank routing number
3. Enter bank account number
4. Brokerage makes 2 small deposits (e.g., $0.17 and$0.23)
5. Verify amounts in 1-2 business days
6. Account verified and ready to use

• ✅ Works with any bank
• ✅ No need to share bank login
• ✅ Traditional and familiar method

• ❌ Takes 1-2 days to verify
• ❌ Must wait to transfer funds
• ❌ Need to find routing/account numbers

• Bottom of paper checks
• Bank’s mobile app (usually in account details)
• Bank’s website (account information section)
• Call your bank

[Routing Number: 9 digits] [Account Number: 10-12 digits] [Check Number]

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Method 3: Linking Multiple Banks

• Primary checking for regular deposits
• Savings account for lump sum transfers
• Spouse’s account (if joint brokerage account)

• Flexibility in funding sources
• Can separate investing funds from bills
• Backup funding method

1. Go to account settings
2. Select “Linked Accounts” or “Banking”
3. Click “Add Another Bank”
4. Follow same process (Plaid or manual)

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Brokerage-Specific Funding Instructions

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Funding Fidelity Account

1. Log in to Fidelity.com or mobile app
2. Go to “Accounts & Trade” > “Transfers”
3. Select “Link an Account”
4. Choose instant linking (Plaid) or manual entry
5. Instant: Select bank and log in
6. Manual: Enter routing and account numbers
7. Wait for micro-deposits to verify (manual method only)

1. Go to “Accounts & Trade” > “Transfers”
2. Click “Deposit, Withdraw, or Transfer Money”
3. Select “Deposit”
4. Choose linked bank account
5. Enter amount to transfer
6. Select destination (your Fidelity account)
7. Review and confirm

• Instant linking: Can initiate transfer immediately
• Standard ACH: 1-3 business days
• Next-day transfer: Available for verified accounts (may have fee)

• First transfer: Usually limited to $25,000-$100,000
• After account history established: Unlimited
• Daily limits may apply for new accounts

• Can transfer via mobile check deposit (up to $100,000)
• Wire transfers available (same day, $15-30 fee)
• Direct deposit from employer (set up like any bank)

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Funding Charles Schwab Account

1. Log in to Schwab.com or mobile app
2. Navigate to “Accounts” > “Deposits & Transfers”
3. Select “Link External Account”
4. Choose instant linking or manual entry
5. Instant: Log in to your bank through Schwab
6. Manual: Provide routing and account numbers
7. Verify micro-deposits if using manual method (1-2 days)

1. Go to “Accounts” > “Deposits & Transfers”
2. Click “Transfer Money”
3. Select “From” account (your bank)
4. Select “To” account (your Schwab brokerage)
5. Enter amount
6. Choose “One-Time” or “Recurring”
7. Review and submit

• MoneyLink transfer: 1-3 business days (free)
• Wire transfer: Same day ($15-25 fee)
• Mobile check deposit: Next business day (up to $50,000)

• Schwab Bank integration (if you have Schwab checking)
• Schwab MoneyLink for quick transfers
• High transfer limits for established accounts
• No fees for standard ACH transfers

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Funding Robinhood Account

1. Open Robinhood app (easier on mobile)
2. Tap profile icon (bottom right)
3. Tap “Transfers”
4. Tap “Add New Bank Account”
5. Instant linking (Plaid): Select bank and log in
6. Manual linking: Enter routing and account numbers
7. Instant linking = ready immediately, manual = 1-2 days

1. Tap profile icon > “Transfers”
2. Tap “Transfer”
3. Select “Deposit”
4. Choose linked bank account
5. Enter amount
6. Choose “Standard” (3-5 days) or “Instant” (up to $1,000 immediately)
7. Tap “Review” then “Submit”

• Instant deposit: Up to $1,000 immediately (limited availability)
• Standard: 3-5 business days (free)
• Higher instant deposits: Up to $50,000 for Gold members

• Instant deposits for immediate investing (up to $1,000)
• Robinhood Gold: Higher instant deposit limits ($50,000)
• Recurring investments: Set up automatic deposits and purchases
• Simple mobile-first experience

• Instant deposit lets you invest immediately while transfer pending
• Great for beginners who don’t want to wait
• Understand you’re using Robinhood’s credit (money not settled yet)

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Funding Interactive Brokers (IBKR) Account

1. Log in to IBKR Client Portal
2. Go to “Transfer & Pay” > “Transfer Funds”
3. Select “Deposit” > “Bank Account”
4. Choose “Add New Bank Account”
5. Enter bank details (IBKR uses manual linking only)
6. Upload voided check or bank letter for verification
7. Wait 1-2 business days for approval

1. Go to “Transfer & Pay” > “Deposit Funds”
2. Select linked bank account
3. Choose “ACH” (free) or “Wire” ($10 fee)
4. Enter amount
5. For wire: Note provided reference number
6. Submit request

• ACH: 3-5 business days (free)
• Wire: Same day ($10 deposit fee,$0 receiving fee)
• International wire: 1-3 business days (fees vary)

• More complex than other brokers
• Requires bank verification (voided check or letter)
• Best for international investors
• Currency conversion available (30+ currencies)

• Investors who want international stocks
• Active traders who need lowest fees
• People comfortable with complexity

• Complete beginners preferring simplicity
• Investors who want instant deposits

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Funding E*TRADE Account

1. Log in to E*TRADE website or app
2. Go to “Transfer” section
3. Click “Manage/Add Banks”
4. Select “Add Bank”
5. Choose instant linking (Plaid) or manual entry
6. Instant: Select bank and log in
7. Manual: Enter routing and account numbers
8. Verify micro-deposits if using manual (1-2 days)

1. Go to “Transfer” section
2. Click “Deposit”
3. Select “From” (your bank)
4. Select “To” (your E*TRADE brokerage)
5. Enter amount
6. Choose date (immediate or future)
7. Review and submit

• Standard ACH: 3 business days (free)
• Wire transfer: Same day ($25 fee)
• Mobile check deposit: Next business day (up to $50,000)

• E*TRADE Bank integration (if you have their checking/savings)
• Higher mobile check deposit limits than competitors
• Easy retirement account funding
• Can set up payroll direct deposit

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Funding Webull Account

1. Open Webull app
2. Tap “Account” (bottom right)
3. Tap “Deposit”
4. Tap “Add New Bank”
5. Plaid linking: Select bank and log in (instant)
6. Manual linking: Enter routing and account numbers
7. Instant linking = ready immediately, manual = 2-3 days

1. Tap “Account” > “Deposit”
2. Select linked bank
3. Enter amount
4. Review transfer details
5. Tap “Confirm”

• Standard ACH: 4-5 business days (free)
• No instant deposit feature (unlike Robinhood)
• Must wait for funds to fully settle before trading

• Very simple mobile-first interface
• Often has deposit bonuses (e.g., deposit $100, get$10 bonus)
• No instant deposits - must wait for full settlement
• Paper trading available while waiting for funds

• Start paper trading immediately while waiting for deposit
• Webull has built-in paper trading with $1M virtual money
• Practice your first trades risk-free

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Understanding Transfer Times

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Standard ACH Transfer Timeline

• Most brokers let you trade while transfer is pending (using margin or credit)
• Robinhood: Instant deposit (can invest up to $1,000 immediately)
• Other brokers: May restrict trading until funds settle

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Wire Transfer Timeline

• Initiated before 2pm: Same day arrival
• Initiated after 2pm: Next business day
• Cost: $15-30 fee (varies by broker)
• Best for: Large amounts or time-sensitive transfers

1. Contact your bank (usually must do in person or via phone)
2. Provide brokerage’s wire instructions (get from broker’s website)
3. Include your brokerage account number as reference
4. Pay wire fee ($15-30)
5. Money arrives same day if before cutoff

• Transferring large amounts ($50,000+)
• Need money same day for time-sensitive investment
• Closing on real estate and need to sell investments quickly

• Regular deposits (use free ACH instead)
• Small amounts (fee is significant percentage)
• No rush (ACH is fine and free)

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Check Deposit Timeline

1. Endorse check (sign back)
2. Open broker’s mobile app
3. Select “Deposit Check”
4. Take photo of front and back
5. Enter amount and submit

• Submitted before 5pm: Next business day
• Submitted after 5pm: 2 business days
• Funds available to trade: Usually next business day
• Funds available to withdraw: 7-10 business days (hold period)

• Fidelity: $100,000 per check
• Schwab: $50,000 per check
• E*TRADE: $50,000 per check
• Robinhood: $50,000 per check
• Webull: $50,000 per check

1. Write check to brokerage name
2. Include account number in memo line
3. Mail to address provided by broker (find on website)
4. Timeline: 7-10 days (mail time + processing)

• Depositing checks made out to you (inheritance, gift, etc.)
• Employer 401(k) rollover
• Large one-time deposits

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Setting Up Recurring Deposits (Dollar-Cost Averaging)

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Why Recurring Deposits?

• ✅ Automate wealth building
• ✅ Remove emotions from investing
• ✅ Dollar-cost averaging (buy at different prices)
• ✅ Build consistent habit
• ✅ “Pay yourself first” mentality

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How to Set Up Recurring Deposits

1. Log in > “Accounts & Trade” > “Transfers”
2. Click “Deposit, Withdraw, or Transfer Money”
3. Select “Deposit”
4. Choose “Recurring Transfer”
5. Select amount and frequency:
   • Weekly, Bi-weekly, Monthly, Quarterly
6. Choose start date and end date (or ongoing)
7. Review and confirm

1. Log in > “Accounts” > “Deposits & Transfers”
2. Click “Transfer Money”
3. Select “Recurring Transfer”
4. Choose from account (bank) and to account (Schwab)
5. Set amount and frequency
6. Select start date
7. Submit

1. Open Robinhood app
2. Tap on stock or ETF you want to invest in
3. Tap “Schedule” or “Recurring”
4. Set:
   • Amount per deposit
   • Frequency (daily, weekly, bi-weekly, monthly)
   • Day of week/month
5. Confirm

1. Log in > “Transfer” > “Automatic Investments”
2. Click “Set Up Plan”
3. Choose investment (stock, ETF, mutual fund)
4. Set amount and frequency
5. Select bank account for funding
6. Review and submit

• Currently limited recurring features
• Best to set up recurring transfer from your bank’s side
• Use your bank’s bill pay to send money to Webull monthly

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Choosing Your Recurring Amount

• 50% of income: Needs (rent, food, utilities)
• 30% of income: Wants (entertainment, dining out)
• 20% of income: Savings and investing

• 50% needs = $2,000
• 30% wants = $1,200
• 20% savings = $800

• Emergency fund: $400
• Investing: $400

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Common Funding Mistakes to Avoid

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Mistake #1: Investing Money You’ll Need Soon

• You have $5,000 saved
• You know you need $3,000 for a car repair in 2 months
• You invest all $5,000 in stocks

• Stock market is volatile short-term
• Might be down 10% when you need the money
• Forced to sell at a loss

• Only invest money you won’t need for 3-5+ years
• Keep short-term money in high-yield savings account
• Rule: If you’ll need it within 3 years, don’t invest it

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Mistake #2: No Emergency Fund

• You have $2,000 in savings
• You invest all $2,000 in stocks
• Car breaks down - needs $1,500 repair
• You have to sell stocks at a loss to pay for repair

• Emergency forces you to sell investments at wrong time
• Might sell at a loss
• Defeats purpose of long-term investing

• Keep 3-6 months of expenses in savings FIRST
• Then invest additional money
• Emergency fund = peace of mind

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Mistake #3: Trying to Time the Market

• You have $5,000 ready to invest
• Market drops 5% and you think “I’ll wait for it to drop more”
• Market goes up 20% over next year
• You missed the entire gain waiting for a bigger drop

• Impossible to time the market perfectly
• Time IN the market > Timing the market
• Every day you wait is potential compound interest lost

• Invest as soon as you have the money
• Or use dollar-cost averaging (invest gradually over 3-6 months)
• Don’t try to predict short-term movements

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Mistake #4: Depositing Too Much Too Fast (FOMO)

• Your friend tells you about a “hot stock”
• You deposit your entire savings ($20,000) immediately
• You buy the stock without research
• Stock drops 30%
• You panic sell at a loss

• Emotional investing leads to bad decisions
• No diversification
• Acting on tips instead of research
• Too much at stake for beginner

• Start with smaller amount ($500-$2,000)
• Learn with manageable stakes
• Gradually increase as you gain experience and confidence
• Do your own research

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Mistake #5: Not Setting Up Recurring Deposits

• You invest $1,000 once
• You forget about it
• Never add more money
• Miss out on compound interest from regular contributions

• One-time deposits grow slower than regular contributions
• Requires discipline to manually deposit each month
• Easy to forget or “skip a month”

• After 30 years at 10%: $17,449

• After 30 years at 10%: $116,858

• Set up automatic recurring deposits on Day 1
• Treat it like a bill that must be paid
• “Pay yourself first” mindset

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Mistake #6: Wrong Transfer Method (Paying Unnecessary Fees)

• You wire transfer $500 to your brokerage
• Wire fee: $30
• That’s 6% of your investment gone immediately!

• Wire fees are significant for small amounts
• ACH transfers are free and only take 3-5 days
• No reason to pay fee for regular deposits

• Use free ACH transfers for regular deposits
• Only use wires for:
  • Large amounts ($50,000+)
  • Time-sensitive situations
  • When percentage fee is tiny (30 on $100,000 = 0.03%)

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What to Do While Waiting for Money to Arrive

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1. Start Paper Trading on Ape AI

1. Go to askape.com
2. Activate paper trading account ($100,000 virtual money)
3. Ask Sage:
   Copy

   Ask AI

   I just deposited $500 to my Fidelity account. While I wait,
   help me practice with paper trading. What should I buy first?
   
4. Make your first practice trades
5. Experience the emotions of gains and losses (with fake money)
6. Build confidence
7. When real money arrives, you’ll be ready

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2. Research Your First Investment

I'm a beginner with $500 to invest in [Brokerage].
What should my first investment be? Explain why.

• Decide between index ETF or individual stocks
• Understand diversification
• Choose appropriate risk level
• Plan your purchase strategy

• For $100-500: Single diversified ETF (VOO, VTI, or VT)
• For $500-$1,000: 2-3 ETFs (stocks, bonds, international)
• For $1,000+: Diversified portfolio (5-10 holdings)

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3. Learn the Platform

• Where to search for stocks/ETFs
• How to view stock details
• How to see charts
• Where to place orders
• How to view your portfolio
• Where to find research

• Most brokers have video tutorials
• Fidelity Learning Center
• Schwab Education
• YouTube tutorials for your specific broker

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4. Set Up Your Investment Plan

My Investment Plan
- Total to invest initially: $1,000
- First investment: $800 in VOO (S&P 500 ETF)
- Second investment: $200 in BND (bond ETF)
- Monthly recurring: $200/month
- Strategy: Hold long-term (10+ years)
- No selling unless emergency

• Reduces emotional decisions
• Creates accountability
• Helps you stick to plan during market drops
• You can review and adjust quarterly

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5. Connect with Ape AI Companions

I'm funding my account with $1,000. What's a smart
allocation for a beginner focused on long-term growth?

Explain the difference between VOO and VTI. Which should
a beginner like me choose for my first investment?

• No question is “too basic”
• Better to ask than make expensive mistake
• Ape AI is patient and judgment-free

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When Can You Start Investing?

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Understanding Settlement Times

• You clicked “Deposit”
• Money hasn’t left your bank yet
• Can’t invest yet (at most brokers)

• Money left your bank
• In transit to brokerage
• May appear in brokerage as “pending”
• Robinhood: Can invest up to $1,000 immediately (instant deposit)
• Other brokers: Usually must wait

• Money arrived in brokerage account
• Shows as available balance
• ✅ Can invest now!

• 3-5 days after transfer initiated
• Can withdraw if needed
• No restrictions

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Broker-Specific “Buying Power” Rules

• Instant deposits up to $1,000 (standard users)
• Instant deposits up to $50,000 (Gold members)
• Can invest immediately while ACH transfer pending
• Can’t withdraw until fully settled

• Can usually trade while transfer pending (using margin)
• No instant deposit feature
• May have limited buying power until funds settle

• Similar to Fidelity
• Can trade while pending (with restrictions)
• No instant deposits

• Limited trading while funds pending
• Must wait for settlement for full access

• No instant deposits
• Must wait for funds to fully arrive before investing
• Can paper trade while waiting

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Success Checklist

• ✅ I have a 3-6 month emergency fund in savings
• ✅ I’ve decided how much to invest initially
• ✅ I’ve chosen between one-time or recurring deposits
• ✅ I’ve linked my bank account securely
• ✅ I understand transfer times (3-5 days for ACH)

• ✅ I initiated the transfer from my bank to brokerage
• ✅ I received confirmation email
• ✅ I can see the pending transfer in my account
• ✅ I’m paper trading on Ape AI while I wait
• ✅ I’m researching my first investment

• ✅ Money shows as “available” in my brokerage
• ✅ I have a plan for what to invest in
• ✅ I set up recurring monthly deposits (optional)
• ✅ I’m ready to make my first investment!

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What’s Next?

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Immediate Next Steps

• Paper Trading: Practice Risk-Free →
• Understanding Order Types: Market vs Limit →
• Market Hours: When Can You Trade? →

• Your First $100 in Stocks →
• Your First $100 in ETFs →

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Ask Sage for Personalized Guidance

I just deposited $[amount] to my [Brokerage] account.
What should I invest in first? I'm a complete beginner
focused on [your goal: retirement/growth/income].

• Recommend specific investments for your situation
• Explain the reasoning
• Help you understand risk and diversification
• Walk you through the purchase step-by-step
• Answer all your questions patiently

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The Bottom Line

• ✅ Link your bank (10 minutes)
• ✅ Initiate transfer (2 minutes)
• ✅ Wait 3-5 days (or use instant deposit on Robinhood)
• ✅ Start investing!

• Minimum: $1 (fractional shares)
• Realistic: $100-$1,000 (sweet spot for learning)
• Maximum first deposit: 25% of liquid savings

• Initial deposit: $500-$2,000
• Recurring deposits: $100-$500/month
• Build wealth automatically

• Emergency fund FIRST (3-6 months expenses)
• Only invest money you won’t need for 5+ years
• Start small, add more as you gain confidence
• Automate monthly deposits = set it and forget it