Presenting the #HYHRD (High Yield High Return Dividend) portfolio #sharebuilder update. $SPTN $LMT $HAS

Edits to your Automatic Investment Plan must be complete by 5:00pm (ET) 8/17/2015 in order for the changes to be effective for the 8/18/2015 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);

equalweight

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 (discontinued as of 9/1/15) 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 (already discontinued) 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”.

Hmmm….

In case those links don’t work, here are screenshots (for trading fees only);

standard pricing and rates

standard

Costco pricing and rates

costco

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”.

Again, hmmm….

So, not satisfied with the non-answer from online chat, I persisted and followed up by “sending them an email” via their Contact Us form on their website. What follows is that exchange;

I can’t show you what was in that “email” sent from their website because it is not saved anywhere that I can access, but you can almost surmise my queries from their (incomplete) responses.

From them;

Thank you for following up with us. Sorry for any confusion this may be causing you.

All of your current accounts will remain the same. This change is only going to affect any new accounts you open. The Advantage Plan is still going to be on your account as long as you do not delete it. If you suspend the ShareBuilder plan (formally Automatic Investing), you can turn it back on without having to worry about any changes. Keep in mind, the ShareBuilder plan and the Advantage Plan are two separate things. The ShareBuilder plan purchase your positions where as the Advantage Plan provided the 12 trade credits.

Since it seems you like to keep an eye on your portfolio, check out our Tracking Alerts feature. This tool can help you better manage your 17 securities when you’re away from the computer. Tracking Alerts can notify you by email or text message when your investments reach a certain share price, volume, and more. You can find Tracking Alerts at Research -> Find Investments -> Tracking Alerts.

From me;

So, if I go back to Basic from Advanced for October, then go back to Advanced for November, I’ll still have the same pricing?

Also, I will be suspending the sharebuilder plan after the 9/22 investments, and resuming it for November when I go back to the Advantage plan.

My weekly contributions will continue as will some dividend accumulation during that time.

From them;

Thank you for getting back to me. If you cancel the Advantage Pricing Program, you are not able to get it back. This is the $10 month charge that come out of the account. This feature gives you the 12 trade credits each month. The trading and deposits are able to be put on hold without having to worry about any pricing changes.

I hope this clears things up. Have a great day!

From me;

OK, so when I go back to Basic for October, what then are the prices and benefits of the Advantage plan when I go back to Advantage for November? I can’t find that info anywhere….

From them;

If you go to the Basic pricing program, you are not able to go back to the Advantage pricing program. This has been around for over 2 years. We discontinued that product before Capital One acquired us. We allowed customer to keep it if they were already on it.

If you decide to go back to the basic program, click here to see the prices you will pay for your trades.

So, clear as mud, eh?

I have decided to allocate $1 for each of the first 10 trades each month to account for the sharebuilder fee. The remaining 2 ‘free’ trades will be unallocated so they will appear to be free trades, determined by timing of the postings to the transaction log. Any trades beyond 12 per month will be charged @ $1 each (September 29th & December 29th), and recorded as ‘regular’ trade fees (i.e.; not sharebuilder fees). The (approximate and cumulative) cost per trade calculation appears on the tradelogs, next to the other calculations for the ind-PandA account on the lower left. Connfused? Yeah, me too.

Stay tuned!

As always, YMMV!

About PandA Trader

I am, I think... "Disobedience, in the eyes of anyone who has read history, is man's original virtue. It is through disobedience and rebellion that progress has been made." -- Oscar Wilde
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