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I wish to invest part of my paycheck in ETF.

Where do I find policy on

  • how much money from paycheck can I contribute to ETF in a year

  • or if it's on %, what % from paycheck can I contribute to ETF in a year

Cannot find any info on Google

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You need a brokerage account to invest in ETFs (there are many different kinds of ETFs, not just one) and that usually means having some amount already deposited with them into the "cash account" in your name. Once the brokerage account is established, you can send whatever money from each paycheck to the brokerage and tell them to invest it in the ETF of your choice. There are no restrictions as to how much money you can send if you send them a check. If you want the money to be withheld from your paycheck, then of course, the limit is the amount of the take-home pay, and whether your employer offers such a service will affect the issue.

If you are wanting to invest in ETFs through your employer's 401(k) plan (or 403(b) plan), there are lots of other considerations.

  • An IRA (Roth or regular) will also have limits. – mhoran_psprep Jan 2 '17 at 23:15
  • @mhoran_psprep Yes, of course, but the limitations I was thinking about were with regard to how much could be contributed from a paycheck to an ETF offered inside a 401(k) or 403(b) plan. The making of those contributions definitely is through payroll deductions etc., while simply investing in ETFs through an IRA (or as a taxable investment) most likely means sending money outside the payroll system, that is, out of the take-home pay or other assets. – Dilip Sarwate Jan 2 '17 at 23:30
  • @DilipSarwate I am guessing I can open brokerage account through a bank, i.e. Citibank? – Rhonda Jan 7 '17 at 18:33
  • @Rhonda Yes, you can open a brokerage account through a bank and invest in an ETF through this account, but please read my answer to your other question before you do so. My opinion is that it is extremely unwise to rush into an investment about which you understand so little, and to open a brokerage account (whether with your bank or another stockbroker) just to invest in an ETF. You have said that people see you as easy to fool, so please remember the adage about a fool and her money soon being parted. Remember that "I told you so!" first. – Dilip Sarwate Jan 8 '17 at 15:00
  • @DilipSarwate Thank you .... I am reading your answer to the other question now .... – Rhonda Jan 8 '17 at 17:27

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