Author Topic: Strategy for Loyal3 Account?  (Read 2681 times)

Bogart99

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Strategy for Loyal3 Account?
« on: July 06, 2014, 04:32:28 PM »
I currently have a 401k which will probably be the bulk of my retirement and I invest in low expense index funds. I also have a taxable TDAmeritrade account that I use to trade and take a little more risk. I have a Roth IRA that I'm thinking about using to buy dividend producing stocks for the long haul. I just opened a Loyal3 account which I will contribute about $200 a month. I am trying to figure out what my strategy should be for this account. Should I use the Loyal3 account to buy dividend producing stocked like Coke, Unilever, McDonald's, etc. and do something else with the IRA? Or, should I buy the dividend stocks with the IRA and use the Loyal3 account to buy stocks that I would not normally buy like Amazon, Apple, or Google. I plan to buy and hold long term in the Loyal3 account.

Thedudeabides

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Re: Strategy for Loyal3 Account?
« Reply #1 on: July 06, 2014, 05:07:43 PM »
I think the important thing to think about is diversification. Would you be able to get the diversification level you desire with Loyal3?

I would suggest something more simple. Why not just keep accounts at Ameritrade and invest in some of their commission free ETFs? If you're interested in dividend stocks, you could invest commission free in VIG and get a lot more diversification than you could with stocks in Loyal3.

GGNoob

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Re: Strategy for Loyal3 Account?
« Reply #2 on: July 06, 2014, 08:23:38 PM »
I was thinking of buying and holding some of the dividend paying stocks myself. I put in $1,500 so far and split it up between 48 stocks. Most give dividends, others were just companies I liked. But now that I've done that, I'm considering just selling them all and putting the money into Betterment instead. I get decent dividends from those ETFs and I am a lot more diversified.

Thedudeabides

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Re: Strategy for Loyal3 Account?
« Reply #3 on: July 06, 2014, 08:40:41 PM »
I think that would be a good idea. Much better asset allocation, diversification and rebalancing.

milesdividendmd

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Re: Strategy for Loyal3 Account?
« Reply #4 on: July 06, 2014, 11:31:12 PM »
I "invest" in LOYAL3.

But for me this is strictly an exercise in manufactured spending. The only good thing about loyal3 is that you can buy stocks with a credit card.

I have zero interest in individual stockpicking, but when I got interested in loyal 3 I looked at all of their stocks.

At current prices, none of them are value plays in the Warren Buffett sense of the term including Berkshire Hathaway. )

As an investment low-cost passive ETFs, or a Betterment account would be far better bet.