Hey guys,
I had a question. I invested my first $10k last year (AFI: diversified LIC, fully-franked dividends reinvested, recommended by barefoot investor for long-term investing) -it cost $29.95 (commsec acct, v low ongoing fees). I was warned to save up and deposit big sums (to avoid the trading fee eating away at my money. But it will take me over a year to save my next $10k (saving around $700 a fortnight atm). I'm around $6k now, and $10k seems forever away!
It got me thinking, where is the line between keeping cash in an account earning barely anything, vs paying the fee each time but having that then sitting in shares (hopefully outpacing inflation)? My current 'high interest' savings account earns around 1.7% interest, which is tiny. Where would you draw the line - should I invest in $1k or $2k or $5k lots, or keep saving until I hit $10k?
(* I'm sure there are probably better ways to invest or pay low fees - I chose commsec as it seems very simple for a novice investor - I just want to 'set and forget' essentially, and hope to leave it there making conservative gains over the long term).