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+--- Thread: Best thing to do with small amounts of cash (/thread-25884.html)
Best thing to do with small amounts of cash - BDBH - 07-21-2015
Hi all,
I have various low-level income sources that direct deposit into my brokerage account. So I get maybe $5 at a time. I was wondering if there was anything better to do with this money than just let it sit there until I have enough to buy a stock or fund that I want (normally between $60 and $150).
It is a Fidelity account so maybe there are some smaller no-fee iShares or similar funds I could consider that are cheap but not worthless? Then the money would still be working for me while I waited for it to grow?
I suspect I should just cultivate some self-control, but thought some of you might have a clever idea about how to invest small balances.
Re: Best thing to do with small amounts of cash - renegade - 07-21-2015
I would talk to Fidelity first, and see what they might have to offer and suggest within their offerings. If you have a storefront near you make an appointment and have a talk with a representative.
Re: Best thing to do with small amounts of cash - YardMan - 07-21-2015
Mutual funds. Fidelity has a ton of mutual funds that you can buy into with less than $20 at no cost. My opinion, you should never buy stocks unless you are doing it with $1000 or more at a time, the commissions just make it nearly impossible to buy and sell and make money. In your case, I would ride a mutual fund until I had $2000 in it, then find a stock to buy... and then start over with your mutual fund until you once again have $2000.
Also, don´t underestimate the potential for mutual funds, especially if you go into one of the more targeted ones at the right time.
Re: Best thing to do with small amounts of cash - elcosteno - 07-22-2015
With these amounts we are definitely talking about something with no commission fees. Get in touch with your broker and ask to get a list of all the products they offer with no commission, then start making your research on those. But anything with a commission is a no go with such small amounts.
Re: Best thing to do with small amounts of cash - ketchim - 07-22-2015
Money Market
https://www.phn.com/Default.aspx?tabid=665
Re: Best thing to do with small amounts of cash - chairman - 07-22-2015
that amount will buy junk. buy a lottery ticket
Re: Best thing to do with small amounts of cash - karlaa - 07-22-2015
I am not sure where the confusion is. Fidelity already offers a ton of no-load mutual funds that cost you nothing to put your money in and you can buy in with any amount.