ABSTRACT
This chapter discusses some investment strategies that can help you become more diversified without having to invest large amounts of money. Laddering is an investment strategy applied most often to bonds, but can also be suitable for other types of investments with a term length, such as Certificates of Deposit (CDs). Setting up a recurring automatic monthly investment (AMI) is a great strategy to use to build one's portfolio if he/she do not has a lump sum to invest but know that he/she will has $50 to $100 per month to invest. A common application for AMI is using it to purchase shares of mutual funds. Direct Stock Purchase Plans (DSPPs) can be another good way of buying individual stocks when one is starting out. One can incorporate AMI with these plans or simply add money to them whenever he/she wants to.
