Sharebuilder?

[Fataliya]

Can anyone explain how it works? I need it in 'investor illiterate' terms. I got an email thru Mypoints, where if I sign up thru them, I'll get $25 free in my account.

 

All I've done so far is click the link, and I see different options for what type of account I would open. There's individual, retirement, and child. I would pick either individual, or retirement.

 

Which is better to open? What are the rules I have to follow, as far as putting money in? Is there a minimum and maximum?

 

The only thing DH and I have right now are our 401k's.

 

Any advice, suggestions, opinions, etc?

[hegemony]

it is a very expensive way to buy IMHO.

[Fataliya]

it is a very expensive way to buy IMHO.

 

Oh, I didn't know you had to pay to put money in!

 

Are most online investment companies the same way?

[Cruise, J.D.]

Are most online investment companies the same way?

 

If you find a free one let us know! If you are buying stocks, you are going to pay some kind of a transaction fee. Some brokers are better/cheaper than others. You can find no-load no-transaction fee mutual funds, but the fund charges an expense ratio. There is no free lunch.

[hegemony]

it is a very expensive way to buy IMHO.

 

Oh, I didn't know you had to pay to put money in!

 

Are most online investment companies the same way?

I mean per share it is expensive. be sure to consider scottrade or other more traditional, yet low cost, options.

[Fataliya]

it is a very expensive way to buy IMHO.

 

Oh, I didn't know you had to pay to put money in!

 

Are most online investment companies the same way?

I mean per share it is expensive. be sure to consider scottrade or other more traditional, yet low cost, options.

 

Thanks Hege, for the advice. This is all foreign to me, but eventually, I'd like to understand it. I'm already 33, so I'd like to get moving on saving for the future...and I'm sure not getting any younger.

[hegemony]

it is a very expensive way to buy IMHO.

 

Oh, I didn't know you had to pay to put money in!

 

Are most online investment companies the same way?

I mean per share it is expensive. be sure to consider scottrade or other more traditional, yet low cost, options.

 

Thanks Hege, for the advice. This is all foreign to me, but eventually, I'd like to understand it. I'm already 33, so I'd like to get moving on saving for the future...and I'm sure not getting any younger.

33 is about when I started, you have plenty of time young'n.

 

I learned a lot reading money, smartmoney, kiplingers, and consumerreports. cnn/money is a good place to read and learn too.

 

do you have an employer sponsered program?

do you qualify for a ROTH IRA?

I would start with these.

 

if you want to invest post-tax money outside of a retirement account, buying mutual funds directly from T Row Price, Fidelity, or Vanguard is a good way to start. We also keep a good amount of money is insured products such as CDs and hsbcdirect.

[SCgurl]

There is one advantage to Sharebuilder-I have been socking away money in ETFs, and at $4 per transaction, the way to make it cheap is to put a chunk 'o money in all at once. I generally put money in twice a year. It is definitely the lowest priority of my accounts. But it does allow me to diversify more that what I already had (I have a 401K at vanguard and another 401K at Prudential-yes, I have to keep them separate!). I have managed to earn more than what I paid in fees in to the tune of about 15%, I like that it's an easy interface, and I like some of the tools.

 

All that being said, if you plan on putting $20 a week in, it is really, really expensive. And make any pre-tax retirement plans and/or Roths a priority. Sharebuilder is just my "fun" account.

[MIKEP1234]

I did a couple a posts a while back about the benefits of sharebuilder...I have an automatic account set up for the 4 dollars, which is extremely cheap, and I also use their sharebuilder visa, which puts back 1% of your spending into your account, its actually a money market account but you can choose which account you want it in.

 

The service is free if you get the basic, the only fees you pay is for the automated investing. If you look at a lot of discount brokerages, including etrade, their stock purchasing and selling rates, even for the basic program are pretty much the same.

 

I love sharebuilder, excellent customer service and you can request stocks that are not currently available to trade that you find, to trade, I have requested two, and so far both have been added to the list of stocks they trade.

 

I would suggest doing some research, seeing what types of fees you are comfortable with and selecting a brokerage, the nice thing about sharebuilder is that it has no minimum, like your smith barney, wachovia, etrade...which range from min of 500-2500 to open an account, and there are no closing fees on the account like etrade, smith barney, wachovia...

 

But if you are looking for a more full service brokerage that offers great Roth IRA plans and trading platforms, I would go with Smith Barney

[hegemony]

I did a couple a posts a while back about the benefits of sharebuilder...I have an automatic account set up for the 4 dollars, which is extremely cheap, and I also use their sharebuilder visa, which puts back 1% of your spending into your account, its actually a money market account but you can choose which account you want it in.

 

The service is free if you get the basic, the only fees you pay is for the automated investing. If you look at a lot of discount brokerages, including etrade, their stock purchasing and selling rates, even for the basic program are pretty much the same.

 

I love sharebuilder, excellent customer service and you can request stocks that are not currently available to trade that you find, to trade, I have requested two, and so far both have been added to the list of stocks they trade.

 

I would suggest doing some research, seeing what types of fees you are comfortable with and selecting a brokerage, the nice thing about sharebuilder is that it has no minimum, like your smith barney, wachovia, etrade...which range from min of 500-2500 to open an account, and there are no closing fees on the account like etrade, smith barney, wachovia...

 

But if you are looking for a more full service brokerage that offers great Roth IRA plans and trading platforms, I would go with Smith Barney

I guess you want people to pay a lot of fees...

 

on sharebuilding, unless you are making very large purchases a few times a year it is very expensive on a per share basis.

[camclearbrook]

Has anyone here tried Computershare. My DW has her ESPP thru them. They have alot of low cost DRIP's.

 

I am a fan of Sharebuilder. We also use the Visa. I only use Sharebuilder for "my sons" stocks. Christmas and B-day.

[54regcab]

I'm with Hege, it's MUCH more effective to buy mutual funds straight from the fund shops.

[sabbath999]

Personally, I like Scottrade, especially now with their revamped tools. There are some cheaper brokers out there, but Scottrade does a REALLY good job for me... fairly inexpensive trades, excellent website, Gainskeeper included (BIG plus) at no charge, etc.