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The main problem with investing small sums is that trading fees can take up a larger percentage of the total. For example, if you invest $100 and are charged a flat $5 fee, you retain $95 in your investment. If you invested $5, you retain $0. (Fees can switch to a proportional basis for larger sums invested, but they are often a flat rate at the lower end.) ...


2

I would strongly advise to start with index funds in a brokerage account that doesn't charge fees for buying and selling ETFs. Then you build your portfolio from there and after 10 months of investing you can invest in one of the stocks you want to buy and still be well diversified. Still depending on your account and the related fees it might be better to ...


2

In the simplest case, let's say I need to pay you $100 in 10 years. If I buy $100 face value of a zero coupon treasury bond maturing in 10 years, I would be able to use the payment from the bond to pay you back. The date I would receive payment from the treasury (maturity) matches the date I owe you. No matter what interest rates do between the time I ...


1

This is a valid criticism of a simple (static-weight) rebalancing strategy. It can reduce portfolio volatility but also reduce expected return. A realistic case would be allocating by country where one country's government permanently collapses (gradually enough for you to keep averaging down on soon-to-be-worthless securities). The real issue is where the ...


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