No. of Recommendations: 1
Yes, of course you can. But in the small dollar amounts you mention, you will pay commissions that are also high, at least as a percentage of the amount you are investing. For example, the 8.95 commission at Schwab on a $100 purchase is a rather large percentage.

The advantage of mutual funds in an IRA is that you can usually have the distributions re-invested automatically, and without any fee. Of course, you should never buy a mutual fund with a load.

I have been told that some companies allow you to re-invest the dividends from their stock, but I cannot give an example right now.
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement