We've all heard about fractional share investing and some of us may have even used it. So when this article popped up on last week's edition of U.S. News Invested, it looked like a really good mini-course on this very topic and so I offer it for your weekend reading. Besides which, it looks like a great way in conjunction with the Acorn Advisers program that was discussed a short time ago, to begin to continue building the old retirement nest egg on literally a daily basis. Enjoy the rest of the weekend and try to dry out from the deluge we're having.
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Invested
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Advice, rankings and stock market news for investors.
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Oct. 15, 2019
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TODAY'S BIG IDEA
Use Fractional Shares for Retirement Investments
Buying fractional shares can help bring pricey, big-name stocks like Google parent company Alphabet (ticker: GOOG, GOOGL) or Amazon.com ( AMZN) within reach for the average investor. This investing strategy is becoming mainstream, thanks to brokerage firms that allow investors to purchase stock shares in increments.
Here are the seven most important rules to know when pursuing fractional investing to trade stocks or funds.
1. Review pricing carefully. Since buying and selling fractional shares is relatively new, it’s important for investors to understand how the broker pricing works and what share price they're paying. "It's important to remember that when buying fractional shares, you are not buying them from the market," says Merlin Rothfeld, investment strategist and instructor at Online Trading Academy.
2. Keep objectives in sight. Investors should have a clear idea of what they expect incremental shares to do for them. Buying and selling stock shares fractionally can yield immediate returns in the near term but the focus is on short-term price movements. Keep your focus on your long-term goals. – Rebecca Lake
https://money.usnews.com/investing/portfolio-management/slideshows/rules-to-grow-retirement-investments-with-fractional-shares
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