ASK THE FOOL: Start Small

Q: What is the least amount of money that you can invest? What if you don’t have enough money to buy 100 shares?

--R. and H. Bailey, via e-mail

A: It’s tragic that many people put off investing for years, thinking they’re not rich enough to benefit from the stock market. You definitely don’t need to have $1,000 or more before you start investing. You don’t have to buy 100 shares at a time. You can buy 17 shares or nine shares--or even fractions of shares, using some services. For instance, at https://www.buyandhold.com , you can invest as little as $20 at a time and buy fractional shares of stock, paying $2.99 per trade.

Q: You recently advised people to think twice about life insurance if they don’t need to protect their income stream against death right now. But shouldn’t they at least think about it, as buying it now can be less expensive than starting at a later age?

--C.R., Benicia, Calif.

A: Good point. Anyone thinking about insurance should definitely think about it, read up on it and ask questions. It should rarely be a quick decision. It’s also worth looking into disability insurance, which provides an income if you become disabled. We often worry about and plan for death but give little thought to the possibility of an extended period of disability. According to some reports, nearly half of all mortgage foreclosures are due to disability, and less than 15% of life insurance purchasers opt for disability insurance, as well.

Disability insurance can seem expensive, but that’s largely because there’s a greater chance you will use it.