Help me and a buddy settle our debate.
I keep telling him he would be way better off in the long run liquidating his current portfolio (say $40k) and investing it all in a fund to which he will regularly add to. Let compound interest so it’s thing.
He has a dozen or so stocks where he invested anywhere between $500 and $5,000 but generally toward the lower end. Most holdings near a $1,000. He doesn’t continue to buy any of these stocks so there is no element of dollar cost averaging. There’s no real strategy other than he chats with friends or hears about a trend.
Long term if he had a solid fund, where he picks it or goes through an advisor, I believe would be a better play. He takes a small tax hit here but if he diligently deposits money into the fund he will be financially better off than his random pick this and that especially at the low dollar volumes.
Agree? Disagree?
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