This continues to be a confusing market but I want to continue putting more funds into dividend paying stocks or total market indices. I am using an approach of buying small quantities each time to minimize the risk of the market or the stock declining further. To minimize costs, I am buying commission free ETFs or using free stock trades from broker promotions.
First, I am buying commission free ETFs that are offered by my brokerage. One brokerage has not holding requirement and another brokerage has a 30 day holding requirement.
Second, I am buying small stock positions in select dividend stocks with commission free trades. That way if the stock falls further, I can add to the position at a lower price. Several brokerages are offering commission free trades for opening a new account or adding to an existing account.
These approaches give me a bit of psychological support as I make the investment, Of course, neither of these strategies will protect our purchases against a significant decline.
For more on The Practice of Personal Finance, check back Wednesdays for a new segment.
This is not financial advice. Please consult a professional advisor.
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