written by reader What do you do with those small amounts left in various investment accounts.

By Marty, March 9, 2018

What do you do with those small amounts in your various investment accounts? Between IRA’s, Roth’s, SEP’s etc, I have a number of accounts, each with ’leftover’ money of between $20 and $300. What do you all do with that? Let it sit, or are you ever tempted to find a penny stock and ”play” (gamble). For the most part, I am a buy and hold investor, so there is little churn in any of those accounts; no real reason to wait, and more of a chance that money will sit for years. Dividends in those accounts are DRIP, so those small amounts won’t soon be joined by other small amounts.

Fighting the urge to play in cheap $1 stocks, but am I wrong? Should I treat it like vegas and risk a few hundred dollars?
Any suggestions for cheap stocks?

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Travis Johnson, Stock Gumshoe
March 23, 2018 11:26 am

I don’t know what you mean by “leftover” — if that’s just extra cash in the account and you also hold stocks that you like in those accounts, it’s easy to just put the extra cash to work in the stock that you think is most appealingly priced.

For some accounts, $300 is a meaningful amount and for some it’s a trivial bit of change, so it all depends on your perspective and your brokerage, but with commissions very low (zero to $10 at most brokers), there’s no reason not to put the money to work in something you already own… and I see no problem with “gambles” that folks make with tiny pieces of their portfolio, either option or penny stock ideas, just make those gambles into “speculations” by first understanding the company and having an idea of their real prospects, not just betting on a ticker symbol.

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