Protect yourself

Q: How much personal liability insurance is it smart to buy? — H.M., Leyden, Wisc.

A: It all depends on how much money you have to lose if you’re sued. Add up the value of your home, your belongings and your financial assets. Tack on some more for legal costs. (Insurance companies will sometimes provide a lawyer.)

If your value total is rather hefty, look into getting an “umbrella” personal liability policy. Umbrella policies generally offer much more liability coverage ($1 million or more) at much lower premiums than individual policies such as homeowners, renters and automobile insurance. Learn more at sites such as investopedia. com/personal-finance/ insurance and iii.org.

Q: Can I buy fewer than 100 shares of a company’s stock? — M.B., Northlakes, N.C.

A: Yes. You can buy just one share, but if it costs $20 and you’re paying a $10 trading commission, you’re down 50 percent immediately. It’s better to try not to pay more than 1 or 2 percent of your trade’s value in commissions — so with a $10 commission, aim to spend (or reap) $500 or more.

You might, alternatively, buy stock directly from a company, such as through a dividend reinvestment plan (a “Drip”), where you can get fractions of shares at a time. Learn more about Drips at fool.com/school/drips. htm and directinvesting. com, and in “Dividend Stocks for Dummies” by Lawrence Carrel (For Dummies, $25).