This is to mainly to build a bond ladder and earn some interest while money
sits in my brokerage account waiting for a better entry point or bargains to buy stocks.
It's not the stocks you hold and
trade in your brokerage account that I am talking about here, but rather the asset allocation of stocks and bonds in your investment portfolio.
However, I only have $ 10,000
left in my brokerage account, making me unable to actually pay the price of the underlying which would require 200 * 300 = $ 600,000.
Because of this, we suggest ignoring the gain / loss calculations shown for the holdings
in your brokerage account unless you've specifically verified your broker accounts for fund distributions correctly.
You always want to maintain an emergency fund for the unexpected, but you should also keep cash
in your brokerage account ready to go so that you can buy things on the dip.
You may get so excited by seeing your
returns in a brokerage account; you may even decide to cut more expenses so you can invest more and achieve financial freedom faster.
If you do own
shares in a brokerage account, you'll have to have them transferred into your name and then deposited into the plan to begin participating.