Q.............
Thru a weird set of circumstances, I found that I had a small amount of cash in my former employer's 401(k). This is only $126.
I decided to leave the money there and start an AIM on the stock that they let me trade there. Trades are, at most, once per day, and must be called in or entered via the www site by 1:00PM CST to get the closing price of the day, and there is no charge for trading. Since it is in a 401(k), no taxes are incurred from trading.
I learned, to my sorrow, that NewPort cannot handle this situation. The problem comes on adding the stock thru the Maintenance screen. Only whole numbers are permitted in the min $ to trade and min shares to trade. With a unit price of $148+, I only have 0.4326 units.
I am doing this as an experiment. Will I achieve the same kind of growth rates from this small starting base that I have enjoyed in my other AIMs? If so, this becomes a very nice 'extra' portfolio when I hit 70 1/2 in 21 years.
So unless you can tell me how to get past this obstacle, its back to a spreadsheet.
Robert
A............
Hi Robert,
First I have to ask if your former employer will let you trade fractions of a share? I assume that the $126 was what was given you in cash instead of issuing a fractional share at the time of the disbursement.
Bob Norman and I talked about it and think you can make Newport work if you will multiply the number or shares by 1000 and divide the price by 1000. You will now tell Newport that you own 432.6 shares and that their price per
share is actually $0.148/share!! This will get past Newport's fractional share problem with the minimums for trading and should let you trade these "units" as part of a "real world" share.
If you are successful, you'll get the award for starting the world's smallest AIM account and making it work!!! Let me know how it goes.
Best regards, Tom |
