As mentioned, this is a bit of a doozy. Mind you, I don't really know what I'm talking about, so if anything I say is way off-base, feel free to correct me.
Say you have $100. Option 1) You can put all $100 in 1 investment/savings vehicle, or Option 2) You can split it and put $50 each in 2 different investment/savings vehicles. Let's assume everything is equal (ceteris paribus) between all vehicles, e.g. transaction costs, management fees, rates of return etc.
Given the power of compounding interest (I think?), will you earn more in Option 1? Maybe because this gives you something like a bigger compounding base, thus it produces more earnings in compounding? Or do Option 1 and Option 2 earn the same? Mathematically, does it just work out to the same earnings; thus you're indifferent between the two options?
In other words, does consolidating investment/savings earn more? Or are you fine splitting accounts/vehicles up because you're not losing earnings/interest anyway?
Apologize in advance if this is not where this should be posted. If so, kindly direct me elsewhere. Thanks.
Submitted December 21, 2018 at 01:12PM by r_clank http://bit.ly/2GJz0Do
