Micro-investing apps?

Tammy asks Dave what he thinks about micro-investing apps. He advises her to think big when it comes to investing.

QUESTION: Tammy asks Dave what he thinks of micro-investing apps. As you might expect, Dave is not a fan. He says when it comes to investing, you should go big or go home.

ANSWER: Micro-investing will create micro-results. The word “micro” means small, so why are we messing with this? Who wants small? Are you going to have a micro-retirement? Do you want to be micro-wealthy? I don’t. I want to be really wealthy with a big retirement and a big life. With micro, you get nothing, you know?

If you want to do that, it’s fine, but it’s the same kind of thing where people say you get 1 percent back. So, you spend $100,000 in order to get $1,000 in brownie points. It’s the same thing. You can round up your Starbuck’s purchase by a nickel for the rest of your life, and then you’ll have a handful of nickels. If you want to do it, that’s okay. But if that’s your only plan, you should prepare to be hungry at retirement.

You’ve got to do more than micro, because micro means what it says — small. I guess you could argue that at least you’re doing something, but then you take up your time and brainpower to do all that stuff. Why not go big? Go big or go home!