5

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.) ...


3

Assuming all four lots qualify for long-term capital gains tax treatment (i.e. they've all been held for more than a year), and assuming no other considerations, minimizing current taxes is the best approach. In that case, it would make sense to sell lot 4. Why might you want to sell a different lot You might be concerned that capital gains taxes would ...


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

one or two of them seem to be doing much better than others. I believe I would like to sell some of the ones that aren't doing so hot, and reinvest them into some of the others that are. I believe this is what is referred to as "re-balancing" my account, is that correct? When people talk about rebalancing their investments they usually do the ...


1

I am not going to comment on how you will decide to rebalance. I am only going to talk about the frequency. and then rebalanced once a week based on what that $10000 was able to buy on January 1st. There is common advice to rebalance your portfolio. This is done to keep the balance between the sectors. If an investor wants to be 40% large company stocks, ...


1

The point of rebalancing is to decrease the allocation to securities that have performed well (sell high) and increase those that have not performed as well "buy low". If you add funds to the account often, you might be able to maintain your target allocation just by choosing the percentage of each that you buy with the new funds - but if you are ...


1

You just need to “rebalance” to the extent that your allocations drift from your target, e.g., 90% equities / 10% fixed income drifting to 91 / 9. It’s unlikely that you’ll need to completely reallocate.


Only top voted, non community-wiki answers of a minimum length are eligible