Sharebuilder - auto investments & fees?


Question:
Hi, If I wanted to invest $50 in several stocks monthly, do the fees make that a really dumb move? Am I better off waiting and investing over $1000 at a time?? Thanks, beginner appreciating your advice!

Answer:
With $50 per month, you would pay higher fees, than if you invest $1,000 at one time.

If you want to invest $50 a month I would recommend a low cost mutual fund company like Troweprice. You can invest here and pay no commision to buy (load fee)
Wait for more than $50.
If you buy at $50, then you get only 92% of your moneys worth because you buy at $4. If you buy at $1000, then you get 99.6% of your moneys worth in stocks.
There are companies that offer DRIP: D.R.I.P. are Dividend Re-Investment Plan, The company allow investors to invest $20 to $200 per month in the company stock. This causes stock price averaging. When ever the dividend is paid it is paid in a fraction of stock based on the stock price.

Many companies just want investors, and will bend the rules to permit almost anyone to be an investor.
This is not a good one. www.sogoinvest.com is your best bet
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