Weekly Roundup - October 15, 2016
|Happy Weekend! Check out what's been going on in my world and some of the best articles from around the blogosphere.|
If you've been paying attention I haven't been making any purchases of dividend growth stocks; however, that doesn't mean I've just been sitting on the sidelines. I've been very busy in the options market with 2 new positions opened this past week and 4 so far this month. That'll likely be about the end of things for a while until I get a chance to close out some of the positions or they expire which 2 of them end in November.
One of the big things I've learned or rather had reinforced with my options activity is just how important keeping your costs low is. Currently my brokerage charges me $8.00 to open an option which is steep when you're talking about option premiums in the $50-$100 range. That's giving up anywhere from 8-16% of my premium and potential return to costs alone.
So I'm very seriously contemplating moving funds to a new brokerage with lower costs. One of the lowest cost discount brokerage firms is Interactive Brokers, Dividend Growth Investor has a great review of the brokerage. The costs are much lower, think $0.70 for an option contract instead of $8.00.
I'm not sure if I'll be moving my taxable brokerage account there although my 401k needs to find a new home as a Rollover IRA and IB just might be it. The only real downside of IB is that they do charge a $7.50 quarterly fee to have an IRA there which is steep considering there's no fee options available.
However, thanks are owed to Dividend Growth Investor for making me think about things from a different perspective. The commission savings alone would make up for the fee. On my current portfolio's balance of ~$140k that $30 fee would only be 0.02%, call that an expense ratio, if I went with a more passive approach to the portfolio.
My plans for the 401k/Rollover funds is to be a bit more active in the options market. I still don't see much that I want to add at this time and so I'll take a more measured approach to getting the funds invested.
So before I finally move my IRA somewhere I was hoping to get some other thoughts/ideas from all of you to get an idea of what brokerages you use or are looking at for a secondary account. Keep in mind this is for a portfolio that will be a bit more active, especially in options, as opposed to the more traditional buy and hold passive index funds.
On to the Roundup
In case you missed them, here's the posts from Passive-Income-Pursuit over the past week.
- Recent Option Transaction
- Dividend Growth Investing at Work - Surprisingly Delicious
- Recent Option Transaction
- Dividend Growth Investing at Work - 4 Raises? Yes, Please!
Once again I'd like to say thanks to each and every one of you that read, commented, and shared posts from here this past week. I think this dividend growth investing and financial independence community is amazing and the openness from everyone is awesome. Thanks again!
Now on to the links!
Why I Am Now Interested In CVS Corporation on Seeking Alpha by Chuck Carnevale
Quarterly Update - Q3 2016 by Roadmap2Retire
Quarterly Review, Q3 2016 by DivGro
A Guide to Conservative Income Producing Option Strategies for Dividend Stocks by Simply Safe Dividends
You Don't Need That Thing by Our Next Life
Realty Income Corp - Closed Contract by Options Hunting
Dividend Aristocrat in Focus #2: AT&T by Sure Dividend
My Plan To Go From Zero to FIRE in 10 Years by Dividend Ten
Two Dividend Growth Stocks On My Radar by Dividend Growth Investor
September Dividend Income From YOU The Bloggers! by Dividend Diplomats
Baby DivHut Dividend Income Portfolio Update - Q3 2016 by DivHut
The Jeff Bezos Regret Minimization Framework by A Wealth of Common Sense
Selling Off A Competitive Business Advantage by The Conservative Income Investor
Also, if you're looking for investment ideas, A Frugal Family's Journey keeps a list of stock analyses and recent buys from fellow bloggers.
I hope you all have a great weekend!
Image courtesy of Gubgib via FreeDigitalPhotos