I am researching companies with the view of investing $500 at a time. Is this amount too conservative?

Q.

I am researching companies with the view of investing $500 at a time. I am more interested in keeping the shares over a long period of time for the dividends. Am I being too conservative buying in $500 allotments? I am actually saving to buy so I don't miss the money - or is there some other investment you would suggest?

I believe that shares are a great buy over the long term but the way to maximise your returns is to have as much money working for you as soon as possible. If your income is secure, you could take advice about conservative borrowing for investment in shares. For example, you could build a portfolio of say $5,000 in quality share trusts and then commence a regular gearing plan whereby you invested a set sum, say $250 a month, which was matched by borrowed funds of up to double that. This means the total investment was $750 a month of which $250 comes from your own funds and $500 is borrowed. As the portfolio builds you could convert this to a margin loan.