Presenting the #HYHRD (High Yield High Return Dividend) portfolio #sharebuilder update.
Edits to your Automatic Investment Plan must be complete by 5:00pm (ET) 8/10/2015 in order for the changes to be effective for the 8/11/2015 investment day.
I select 3 stocks for each weekly investment based on my #BuyList, selecting “qualified” dividend paying stocks for this taxable account. I try to choose what I perceive to currently be the best choices for my weekly investments. They must also be ‘eligible’ for the sharebuilder AIP.
The current weekly allocations for each investment in the AIP (Automatic Investment Plan) is shown near the bottom of the ‘Equal Weight’ spreadsheet (as shown below);
The (quite convoluted) formula I use for figuring the weekly allocations for each investment in the AIP is shown on the ‘Equal Weight’ spreadsheet.
The Costco Advantage plan @ $10 per month gives me 12 ‘free’ AIP trades each month, which mean the first 12 trades each month actually cost $0.833333 each, with any additional AIP trades each month costing $1.00 each, amounting to an actual cost of $0.866667 each in months with 5 Tuesdays (defined as ‘Investment Day’ by Capital One Investing). Any Buy orders made outside of the regularly scheduled AIP purchases as well as any Sell orders cost $4.95 with this plan. Of course, the first month is ‘FREE’, which means I am not charged $10 for that first month. This also means that, for this year only, each trade will then cost (26 weeks X 3 trades each week = 78 trades divided by total cost of $10/month for 5 months plus 2 ‘extra’ weeks of 3 trades each week @ $1 each = $56 which results in a total cost per trade of ~$0.717948), barring any sale trades or ‘impulse’ buys @ $4.95 each. Not too shabby IMHO, but YMMV!
You need to be a Costco member to get this pricing, but Capital One Investing (sharebuilder) is still a good deal if you aren’t a member. So, even without the Costco pricing, the Advantage plan would cost $12/month and would give me 12 ‘free’ AIP trades each month, which mean the first 12 trades each month actually cost $1.00 each, with any additional AIP trades each month costing $2.00 each, amounting to an actual cost of $1.20 each in months with 5 Tuesdays (defined as ‘Investment Day’ by Capital One Investing). Any Buy orders made outside of the regularly scheduled AIP purchases as well as any Sell orders cost $5.95 with this plan. Of course, you still get the first month free. Again, not too shabby IMHO, but YMMV!
Well, it looks like the Costco Advantage plan is ending, because this is what the email from 8/10 said;
Capital One Investing and Costco are retiring our relationship on September 1, 2015, and we want to let you know how this could impact you.
For your existing accounts, you’ll still receive your Costco benefits, including the $5.95 trade price (low-priced securities, options and mutual funds may be extra). However, standard pricing and rates for trades will apply to any new investing accounts you open. See standard pricing and rates, and see Costco pricing and rates.
You can still expect the same great service and access to the same user-friendly investing tools you already have. Of course, if you’ve bookmarked capitaloneinvesting.com/Costco, go ahead and update it to capitaloneinvesting.com.
If you have questions about this or about your account, please contact us.
So, I chatted online with one of their reps. His answer to every one of my questions was the same; “I can not say with certainty”.
In case those links don’t work, here are screenshots (for trading fees only);
standard pricing and rates
Costco pricing and rates
There was also no mention of how the Advantage Plan pricing would be changing, and of course his answer to that query was; “I can not say with certainty”.
As always, YMMV!