FFD you can use no commission ETFs to temporarily park your money. In my TD account I use a few dividend paying ETFs (average yield is 3%) and based on your contribution size you may end up holding that ETF for 6 or more months - for example if you save $200 monthly to your account you can be buying the ETF for free and in 6 months you will save 1200 dollars, so the next month you sell to get 1000 dollars out, add the new contribution to it and buy a stock while continuing saving the new cycle in the ETF. I do it that way, works well although sometimes the value of that ETF may drop, but it never was so dramatic. Check my website where I write about this strategy investing small money. If you do not mind I will post the link here: http://hellosuckers.net/commission-free-wealth-building-this-time-with-reit-etf/
FFD, thanks for adding me to your blogroll. i will do the same. If you need any help with investing or anything I can help, let me know or shoot me an email. I'll gladly help.
Ok, thanks for your reply. $7 per trade is a good price. Maybe $1400 would be a nice number to keep costs under 0.5%. I live in Portugal and prices are higher around here.
And we don't have many "growth dividend" companies :(
I just discovered your site and I congratulate you for your work, I will be aware of your accomplishments and our goals are similar, good luck from Spain
FF have you ever considered using the Save by borrowing technique. You are losing a lot of future value giving up the earning power of that money now. It is not $7.00 a commission. It is $7.00 compounded over the next, at least thirty years.
Save by borrowing: http://www.wikinvest.com/wiki/Save_by_borrowing_technique
I am saving $1200 - $2000 a month to invest. When I first started 3 months ago, I didn't know what I was doing and just buying with out thinking about cost. I won't be doing that any more. :)
Those are really small positions. How much do you pay per trade?
ReplyDeleteTrader,
DeleteYea, I am new with investing. I pay $7 per trade, so I wont be doing $200 buys. lol I'll do at least $1200 from now on.
Thanks for stop by. You are the first person to comment. :)
FFD you can use no commission ETFs to temporarily park your money. In my TD account I use a few dividend paying ETFs (average yield is 3%) and based on your contribution size you may end up holding that ETF for 6 or more months - for example if you save $200 monthly to your account you can be buying the ETF for free and in 6 months you will save 1200 dollars, so the next month you sell to get 1000 dollars out, add the new contribution to it and buy a stock while continuing saving the new cycle in the ETF. I do it that way, works well although sometimes the value of that ETF may drop, but it never was so dramatic. Check my website where I write about this strategy investing small money. If you do not mind I will post the link here:
Deletehttp://hellosuckers.net/commission-free-wealth-building-this-time-with-reit-etf/
Martin,
DeleteThanks for the tip. That sounds like a great Idea. I am going to read your post about it.
Also, I follow your website. I really appreciate the tip. :)
FFD, thanks for adding me to your blogroll. i will do the same. If you need any help with investing or anything I can help, let me know or shoot me an email. I'll gladly help.
DeleteYou're welcome Martin. Thanks for the offer. I sure will be needing as I am learning as I go.
DeleteOk, thanks for your reply.
ReplyDelete$7 per trade is a good price. Maybe $1400 would be a nice number to keep costs under 0.5%.
I live in Portugal and prices are higher around here.
And we don't have many "growth dividend" companies :(
Cheers!
Thanks for the recommendation. Good luck to you. :)
DeleteI just discovered your site and I congratulate you for your work, I will be aware of your accomplishments and our goals are similar, good luck from Spain
ReplyDeleteThanks so much for the support and thank you for reading my blog.
DeleteBest wishes and good luck to you too.
Imagine this stock:
ReplyDelete1 stock : $100
year dividend : $2.30 (after taxes, paid and reinvested each 3 months)
annually dividend growth : 2.3%
You can sell the stock any time you want for $100.
You don't pay any fee or commission to buy or sell.
Would you buy this stock for your strategy?
Just to clariry: the $2.3 dividend is just for 1st year and is an annual value. Each 3 months of 1st year you would receive 1/4 of that.
DeleteHi Trader.
ReplyDeleteNo, I won't buy the stock because of the 2.3% dividend growth. I will be looking for stocks with at least 5% or more in dividend growth a year.
Thank you for your question.
FFDividend
ReplyDeleteNice portfolio and Great blog! I look forward to following your progress!
Thanks so much for the comment. I added you to the bloggers I follow as well. good luck to you.
DeleteComing from a new blogger and investor always nice to see others at a farther point to keep me motivated!
ReplyDeleteGreat to here!! Glad I can help. Thanks for commenting.
DeleteAwesome Blog! Good luck in your goals! I will be following!
ReplyDeleteThank you so much. Cant wait for what the future has in store for me. Good luck to you as well.
DeleteFF have you ever considered using the Save by borrowing technique. You are losing a lot of future value giving up the earning power of that money now. It is not $7.00 a commission. It is $7.00 compounded over the next, at least thirty years.
ReplyDeleteSave by borrowing: http://www.wikinvest.com/wiki/Save_by_borrowing_technique
Sumflow,
DeleteI am saving $1200 - $2000 a month to invest. When I first started 3 months ago, I didn't know what I was doing and just buying with out thinking about cost. I won't be doing that any more. :)
thanks for reading and commenting.
Good Blog, will be come back from time to time.
ReplyDeleteYou keep that money coming!
cheers!
Thanks for checking out my blog investingidiot. Thanks :)
DeleteHi FFdividend, this is my first time in your blog. You are building a great long run portfolio like me. Keep it up.
ReplyDeleteThanks FJ, I hope you continue to read my blog. Thanks for stopping by.
DeleteI just came across your blog - nice portfolio! I like how you separated the companies by their respective sector.
ReplyDeleteThanks for visiting. I hope you continue to follow me on my quest to FI.
DeleteNice portfolio with good dividend stocks and most of them overlap with my portfolio. Good luck with your journey to financial freedom.
ReplyDeleteGreat looking portfolio! I like your YOC >4%, we'll wait after 10 years and I am guessing it will be more than double! Thanks for sharing.
ReplyDeleteNice Porfolio!
ReplyDeleteJust keep adding and rolling that snowball down the hill :)