Where do you get the figure of $50 transaction fee...

2008-02-12T22:36:00.000-05:00

Where do you get the figure of $50 transaction fee with Vanguard? I.e., how many stocks are you talking about buying in that scenario? Surely you're not talking about a single stock? (because if you are, then obviously there are many fine brokers who will beat a $50 transaction fee).

I looked into a DRIP with GE; I like the idea. But they charge a monthly fee of $3, whereas with Sharebuilder I pay $2 per automatic trade (and dividend reinvestment is free). Not to mention that with Sharebuilder I can start and stop it any time I want, or switch from GE to DD to XOM to whatever. So it was the $3 fee that turned me off of GE's DRIP.

It's also worth pointing out that, unless they've changed their policy since I last looked into it, Bank of America offers free trades for those who keep $25k in the bank account (e.g., in CDs). This won't help the beginner, but for someone who keeps that kind of "safe money" around for a rainy day, that's an even cheaper alternative to Sharebuilder.

I have a friend who does this. He buys $100 a mon...

2008-02-06T07:51:00.000-05:00

I have a friend who does this. He buys $100 a month from a local power company (also one of the nations largest) through their website. I have questioned him about how long it takes to sell, commissions, and all in all it sounds like a good deal. Its something that I will probably look into doing after I have funded my IRA for the year.

Comments on Dual Income No Kids: DRIPS

Where do you get the figure of $50 transaction fee...

I have a friend who does this. He buys $100 a mon...