I'm starting off pretty slowly with my investments through Loyal3 but I really like it as a way to dollar cost average into positions. The fact that I can make the purchases using my credit card and earn cash back or do other travel hacking with capital that I'd invest anyways is just a bonus. Actually a 1% cash back bonus with the current credit card that I'm going to use to make the purchases. I set up some automatic monthly purchases in some pretty well known companies that should turn out to be great investments over the long term. The following are the companies that I have set up for automatic monthly purchases and the corresponding purchase amounts and day of the month the purchase will go through.
The first two companies that I purchased were Apple (AAPL) and Disney (DIS). Two pretty solid companies that have the potential for great dividend growth over the next few years. Disney probably has a more viable long term plan than Apple since Disney doesn't require constant innovation, but I wanted a bit of exposure to Apple even though it's not one of the typical companies I purchase. I personally don't understand the draw of the Apple products but people are hooked on them. Plus the ecosystem is pretty amazing.
I'm only investing $175 per month to start out, with $25 increments. I want to see how the whole thing works before I ramp up the amounts. If I'm happy with the way things work then I'll eventually bump up the purchases to probably $50 per month and branch out into a few other companies as well. At most I expect to invest $1k per month through Loyal3 to get my savings invested a bit quicker and slowly build the positions over time. Although that'd still leave me with about $4.5k per month to invest through a traditional brokerage account based on my average monthly savings thus far this year. Thank you high savings rate. There's still several other companies that I'd like to start or continue building positions in such as Unilever (UL), Coca-Cola (KO), Pepsico (PEP), Hershey's (HSY), Microsoft (MSFT), Starbucks (SBUX), and YUM Brands (YUM).
For anyone that has already been using Loyal3 for a while, is there a way to set up multiple purchases for the same company throughout the month or do you have to set up separate one time purchase orders? Also can you do one time purchases that are more than $50 and use a credit card or do you have to have cash in your account to make the purchase?
Do you use Loyal3 or another alternative brokerage?
Note: You should only use Loyal3 to make purchases with cash that would be invested anyways, i.e. cash already in your accounts. Buying stock using your credit card without being able to pay off the bill every month will be a losing situation 99.9999% of the times due to the interest you're charged.