Archives for February 2007

Wells Fargo Lowers Requirements for Free Stock Trades

Posted on February 13, 2007 // 43 Comments

Wells Fargo is now offering 100 free online trades per year if you have $25,000 in brokerage equity, loan balances, or deposits with them (down from $250,000). This seems to be in direct response to Bank of America’s Free Trade program, which requires $25,000 in cash deposits.

Much Easier To Qualify
Although Wells Fargo is offering less trades than BofA (100/year vs. 30/month), it’s easier to qualify at Wells since you can use both brokerage and loan balances:

Wells Fargo accounts used for balance qualification include checking, savings, time accounts (CDs), retirement (IRAs), brokerage, trust (excluding irrevocable trusts), loans, outstanding credit cards and line of credit balances, and 10% of outstanding mortgage balance (certain mortgages not eligible).

I called them and confirmed that you can simply move over $25,000 in existing stocks and mutual funds to qualify for the free trades. You can even have, for example, $12,500 in taxable brokerage and $12,500 in an IRA and get 100 free trades for both accounts. Nice! There are no annual fees if you maintain the $25,000 all in one brokerage account, but if you split it across accounts you may be subject to maintenance fees (fee schedule). You will also need to open a PMA checking account with them.

Free Mutual Fund Trades Too
In addition to the stock trades, Wells Fargo is offering free mutual fund trades. This includes all no-load fund families that they offer, not just the ones on their no-transaction-fee (NTF) list, and includes names like Vanguard, Fidelity, Dodge & Cox, and Bridgeway. This could be great for people who want to consolidate all their holdings from different fund families into one account.

Don’t Have $25k? Try Zecco
Zecco.com continues to offer the lowest requirement for free stock trades, just a $2,500 minimum opening amount including stock equity. See my Zecco feature review for details. Zecco’s hurdles include their young brand and doubt that their business model will be able to keep the trades fee in the long run.

Filed Under: Deals & Offers, Investing //

Instant Business Idea: Sell Seasonal Gift Baskets From Your Driveway

Posted on February 12, 2007 // 11 Comments

There’s always a lot of interest for home-based businesses with flexible hours. (Why wouldn’t there be?) Here’s one unique example that I drove past today on a busy local street:

Cell Phone Val Home Biz

In case you can’t make out the sign, it says “Valentine’s Baskets – Sale”. Sorry for the blurriness, it was taken with a cell phone. I circled around for a second look, but I didn’t stop so I don’t know how much they were. The gift baskets seemed nice, with teddy bears and balloons and such. I wonder if they were from last year’s After-Valentine’s clearance sales, or if they were handmade. There’s a business idea – take advantage of after-Christmas/ Thanksgiving/Easter/Valentine’s day sales, bunch up the cheap knickknacks, and make them into gift baskets for next year. I would probably look into a better venue than selling from your driveway (eBay? local craft markets?).

Although I am skeptical that they will be very successful, I might stop by tomorrow to chat with the entrepreneurial homeowners to see what their motivation was (and maybe suggest they make a more legible sign).

Filed Under: Entrepreneurial //

Do You Make A Six Figure Salary? Share Your Story.

Posted on February 11, 2007 // 460 Comments

Even though the $100,000+ salary club gets less exclusive each year with inflation, it is still considered by many to be a sign of success. According to reports, only about 5% of workers nationwide make six figures. Although it is by no means necessary to make that much in order to lead a fulfilling life and even a comfortable retirement, I think many people (including me) are still curious as to who makes six-figures.

As I approach my 30th birthday, many of my friends are reaching or surpassing this mark as they graduate with advanced degrees or move up the corporate ladder. Here are some examples of people I know who are earning more than $100,000 per year. Keep in mind I live on the West Coast, so salaries are higher overall. (Cost of living calculator) Many of these are expected, but some may surprise you.

Investment Banker – Education needed: Bachelor’s in almost any field, preferably business or engineering/math related. If you love competition and working 100 hours a week, you can easily make much more than $100k per year.

Lawyer – Education needed: J.D. Work hard, schmooze a bit, get a good clerkship, land a job at a respected firm and you’ll be a 6F’er. As an associate you’ll also be putting in 80+ hour weeks. However, if you want to work at a non-profit, your salary will be significantly less, maybe in the $40k range.

Physician – Education needed: M.D. plus 3-10 years of residency. Salary varies wildly for doctors too. Many pediatricians make less than $100k per year, while a cardiac surgeon (10 years of residency) can make $500k+ per year. Keep in mind during residency you’ll be earning $40k a year and also working 80 hours a week.

Small Business Owner – Education needed: None. These are mostly the parent of my friends, who have created successful small businesses worth millions, from restaurants to import/export to service/construction. The common thread between all these people is that it takes enormous commitment and dedication, often at the expense of family life. Be prepared to work seven days a week, all the while knowing that you could easily lose money each month.
[Read more…]

Filed Under: Career //

5 Romantic Yet Money-Saving Ideas For Valentine’s Day

Posted on February 11, 2007 // 20 Comments

I’m no Casanova by any stretch of the imagination, but I have managed to navigate and survive my share of Valentine’s Days so far. Some were extravagant, some were very simple, but they were all great. Here are five tips from my own experiences, with the primary goal being to improve the experience and any money saved money merely a happy side effect.

image credit: rockybaylodge.com1. Food cooked for you by your Valentine is always better than from any restaurant. When someone takes the time and effort to cook you a meal from scratch, how can it not be great? There’s no need to achieve culinary perfection here; Some simple and successful recipes I’ve tried include this pasta with vodka cream sauce, or perhaps grilling up some salmon and asparagus. You can even add a great wine and candles for less than the tip would be at a nice restaurant.

image credit: Foodnetwork.com2. The same goes for Valentine’s candy. A $20 box of Russell Stover’s? Yawn. Try dipping your own chocolate-covered strawberries, it’s easy. Rice Krispie treats shaped into hearts. Cookies. If it’s chilly out, I highly recommend making your own hot chocolate. The possibilities are endless. For an added touch, make it together.

image credit: me!3. Movies are a horrible date activity. I love movies, but let’s see, you sit the dark and never look at each other for 2 hours. How is that romantic? Take the afternoon off and go hiking somewhere. Take a walk in the park or along the waterfront. Find a bar or restaurant with a view, and just go for a drink while watching the sunset. All these ideas will cost less than two movie tickets, and you’ll actually be able to talk to each other.
[Read more…]

Filed Under: Frugal Living //

Etrade Bank Complete Savings $25 Opening Bonus

Posted on February 10, 2007 // 21 Comments

ETrade is offering a $25 bonus for opening a Complete Savings account with at least $1. It is currently paying 5.05% APY with no minimum balance and no account fees. For more information, see my E-Trade Bank Complete Savings Feature Review. Expires February 28, 2007.

E-Trade is my financial arch-nemesis. I still have an IRA there with 18 cents in it that I cannot close. I even tried opening one of these savings accounts, filling out the entire application and getting an account number. A week later, they didn’t withdraw my deposit and nothing showed up online. After another week of multiple e-mails and an hour on hold, still no account. I feel like their money-saving model is “ignore them until they give up”. Am I the only one?

Thanks to K via BankDeals via Shraz for the tip.

Filed Under: Deals & Offers //

World’s Assets By Geographic Area

Posted on February 9, 2007 // 7 Comments

Ever wonder how the world’s liquid, investable assets are currently broken down by geographic area?

Pie Charts Are Yummy

This is based on market capitalization as calculated by the MSCI Global Capital Markets Index. The United States by itself is approximately 45%. It will be interested to see how this graph will change in the next decade.

Filed Under: Investing //

My Favorite Business Rewards Credit Cards

Posted on February 9, 2007 // 23 Comments

I’ve written about my favorite rewards cards already, but someone asked about my favorite business cards. On top of the extra rewards, I like these because they can also help you track and separate your business expenses. Remember, individuals can also sign up for business cards under their own name.

For Big Spenders: The Business Gold Rewards Card from American Express OPEN
The New Business Gold Rewards Card from American Express OPENI forgot about the The Business Gold Rewards Card from American Express OPEN (which I also got for the rewards), that also offers a good deal of Membership Rewards points during the first year. Limited Time Offer: Get 50,000 Membership Rewards points when you spend $5,000 in the first three months of Card membership. Terms and restrictions apply. Points are earned only on eligible purchases. Bonus points limitations apply.

It’s a bit hidden – if you click on the ‘Learn More’ link on the application page, you’ll see the bonus points offer:

  • 3X points on airfare
  • 2x points on purchases in the U.S. for advertising in select media, gasoline at U.S. stand-alone gas stations, and shipping
  • 1X points on other purchases

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10,000 points is equal to $100 in gift cards or 10,000 frequent flyer miles, so roughly 1 point = 1 cent.

Let’s say you spend $60,000 in the first year. You’ll get 1 point per $1 spent, so 60,000 points. You’ll also get all 30,000 points above. That’s 90,000 points (~$900) for $60,000 in spending, for an overall 1.5% back.

You can get another 10,000 points for the one-year card renewal, getting you to their 100,000 point level, but you’ll be charged the $125 annual fee, so you’ll have to decide if it’s worth it. The first year’s annual fee is waived.

Here are some fine print details for the cards:

Chase Business Cash Rewards Card

You will earn 1 point per $1 for new net purchases totaling $0 to $2,000 each billing cycle. New net purchases totaling over $2,000 and up to $2,500 will earn 5 points per $1, and new net purchases totaling over $2500 will earn 1.25 points per $1. To determine the level of points earned for each billing cycle, only new net purchases are used in the calculation, and net purchases spending thresholds will reset to $0 at the start of each new billing cycle.

Filed Under: Credit Cards, Deals & Offers, General //

PayPal Promotion: $15 Off Any $30 Purchase

Posted on February 8, 2007 // 33 Comments

PayPal is offering a $15 rebate on any single purchase of $30 or more between February 8 and March 31. Valid anywhere PayPal is accepted in the U.S. and Canada, including eBay. You must register your primary e-mail here first.

I always buy my dog’s flea medication from eBay anyways (cheapest price I could find), so it works out great for me. Thanks Tom for the tip.

Added: The page has changed since I first posted this. It appears now to be only open for certain people. For a while, it was available to everyone and even on the front page of PayPal. Bummer.

Filed Under: Deals & Offers //

Fidelity MyPlan: Should Good Savers Invest Less Aggressively?

Posted on February 8, 2007 // 25 Comments

Fidelity has a new tool called the myPlan retirement calculator. It’s very soothing and is only 5 questions long, why not give it a whirl? What I like about it is that it doesn’t just deal with average numbers. People like to use round numbers like 8% annually and pretend like they are a sure thing, but the fact is with some bad timing we could end up doing a lot worse.

Using some rough numbers from our own situation – age 28, $100k income, $100k saved so far, $2,500 saved monthly, Aggressive Growth investment style, we get the following result:

myPlan Screenshot

Not bad, right? If the market performs on average, we will easily exceed what we need to retire on. (Yes, the numbers are huge!) If the market performs poorly however, we’ll be significantly short. Now, what if we change the investment style from Aggressive to Conservative?
[Read more…]

Filed Under: Investing, Retirement //

Free 24 Minutes of Skype for Chinese New Year

Posted on February 8, 2007 // 3 Comments

Right now Skype is giving out 24 free minutes of calling in celebration of Chinese New Year. Yes, it’s only worth 50 cents. But I’d pick up two quarters off the street any day. Kung Hei Fat Choi!

Filed Under: Deals & Offers //

February 2007 Investment Portfolio Snapshot

Posted on February 7, 2007 // 25 Comments

It’s time for another bi-monthly update on my investment portfolio.

2/07 Portfolio Breakdown
 
Retirement Portfolio
Fund $ %
FSTMX – Fidelity Total Stock Market Index Fund $11,212 15%
VIVAX – Vanguard [Large-Cap] Value Index $14,057 19%
VISVX – V. Small-Cap Value Index $14,184 19%
VGSIX – V. REIT Index $9,781 13%
VTRIX – V. International Value $8,052 11%
VEIEX – V. Emerging Markets Stock Index $7,814 10%
VFICX – V. Int-Term Investment-Grade Bond $7,631 10%
BRSIX – Bridgeway Ultra-Small Market $2,109 3%
Cash – Unreinvested Dividends $500 –
Total $75,340
 
December and January Fund Transactions
$500 deposited in 401k, not yet invested

Thoughts
Another two months with little activity in my low-maintenance portfolio. I don’t get the joy of reading about my fund picks in magazines, but I don’t worry about choosing the wrong one either.

I am still ironing out a slightly tweaked asset allocation, one that has a more balanced domestic/international distribution and something I hopefully won’t mess with again for a long time. I’m reviewing the model portfolio comparisons and the books they came from, including Ferri’s new book All About Index Funds.

You can see some older posts on how this portfolio came to be here, as well as my previous portfolio snapshots here.

Filed Under: Investing, Retirement //

4 More Ways To Get A Free Credit Report

Posted on February 5, 2007 // 39 Comments
Logos for 3 Major Credit Bureaus

I think the media in general has been pretty successful about promoting AnnualCreditReport.com, the official government-mandated source of free credit reports. I checked all mine last March. But what happens when it hasn’t been 12 months yet but you need to check again? Do you try one of those free trial gimmicks and remember to cancel in time?

Not so fast! There are several more ways to get a free credit report without having to use up all your freebies:

  1. You were denied credit, insurance, or a job due to information on your credit report. A notice stating which credit bureau supplied the report should be included in your letter of denial. You then have 60 days to request a free copy of your report from them.
  2. You are unemployed. You’re also entitled to one free report a year if you?re unemployed and plan to look for a job within 60 days.
  3. You are on welfare.
  4. Your believe yourself to be a victim of identity theft. Perhaps you recently found a suspicious transaction, or lost your wallet. Have you shopped at TJ Maxx or Marshall’s since 2003? Place a fraud alert on your file, and then ask for a free copy of your credit report.

Here are the numbers you’ll need:

* Equifax: 800-685-1111; Fraud Dept. 800-525-6285
* Experian: 888-397-3742 (same for Fraud Dept.)
* Trans Union: 800-916-8800; Fraud Dept. 800-680-7289

This is all taken from the Federal Trade Commission, so you can reference that if they try to argue with you.

Filed Under: Deals & Offers, Frugal Living //
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