Retired at 41


Confused about dryer sheets
Oct 29, 2010
Just found this forum by accident the other day.

Through a combination of good investing and reasonable frugality I was able to retire at 41. Best decision I ever made.

While most of my investments would not be of interest to people one thing I recently started doing may be.

Sharebuilder, a service offered by the same people who own ING Direct Bank, offers a way to do periodic investments at reasonable cost. For $12/mo you can make up to 12 stock purchases with no additional fees. They always offer a $25 sign up bonus and sometimes you can get a $50 bonus. (My $50 bonus came via email from ING Direct. I have an Orange Savings account there.) They also waive the $12 fee for the first month.

My approach was to select 12 different high dividend paying stocks and invest a fixed sum of money in each once per month My goal is to stay with it for a long time and thereby accumulate a sizable income producing nest egg.

My picks are not designed to be diversified. They reflect my desire to get some large cap exposure in industries where I have little or none presently.

This idea won't be good for everyone but the low cost and minimal hassle works for me.

Welcome Big John.

I have looked at the Sharebuilder offering in the past, and it does have some attractive features.

But for me, with relatively small amounts to be invested, the numbers didn't work out. It was not "low cost" in comparison to mutual funds or ETF's.

Between the monthly charge and the $75 back end fee to close an account, I figured $150 / year. That's 1% annually on a $15,000 account. If I had prospects of a 6-figure account balance in the near term, my view would be different.

You are right. When investing a smaller amount even the $1 per trade times 12 is too much. I believe the $75 transfer out fee only applies if you want to move the assets elsewhere. If you liquidate there is not charge other than for the trades.

My first year will be only $82. ($12x12=$144 less the $50 bonus less the $12 free first month.)
Welcome to the forum. I hope you share the joys, challenges & lessons of your 15 years of ER in our Life after FIRE forum.
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