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Sharebuilder Update: Bonus Funded

Back in February, I signed up for a Sharebuilder account with a $50 bonus promotion after the first trade. I debated on what I should buy. So, I funded the account with $40 and bought Simon Property Group (SPG). I chose SPG for several reasons. First, they are a REIT, and as such, they must distribute 90% of their profits in the for of dividends. I live dividends, and I have setup my sharebuilder account for free dividend reinvestment. Secondly, they have been rated the #1 most-admired company, by Fortune Magazine, for the second time in four years. Third, and maybe most important to me, they are a local company and I can walk by and see how things are going at any time. I also like to walk around malls and talk loundly to my wife and family about walking through "our" mall. If I am there with friends, I often ask their opinion of "my" mall. Anyhow, I did an automatic purchase and tried to be smart. I ended up screwing up, because I decided to spend $36 thinking that $4 more would be deducted for the transaction fee. Well, I bought $32 worth of SPG, and I had $4 sitting around in the money market account for over a month. I did earn 1 cent in interest. Finally, PSECU funded my $50 today.

I have it setup to invest $54 in SPG on Tuesday. This means I will have nearly one share of SPG, depending on the purchase price. I am changing my W-4 to stop all Federal withholding for the rest of the year, as I got a complete refund for 2005, and I have paid a hefty chunk in withholdings already. Part of that will help my $10K in cash goal for the next ten years. The other part may go to fund my $35K in bonds or $55K in stocks over the next ten years. In the stocks, I am always looking for dividend producing stocks, because I like them. There is a great opportunity, even in a down market, when you reinvest dividends. So, I have a few other REITs that I will invest in, and then I may look into some healthcare stocks.


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