New monthly investments via Loyal3

It is very tough to time the market. People have tried to develop strategies to do that and all have failed in the long-term. What I do know is that high quality companies will eventually go up. If your investing horizon is long enough, then it really doesn’t matter what the price is now. The small short term gain you might get by buying on the dip will only be a blip in the grand scheme of things.

To do that end, I’ve decided to open an account with Loyal3. Loyal3 is a new breed of company that offers investors free commissions for a small selection of great companies (59 to be exact). The available companies to buy include such stalwarts as Apple, Berkshire-Hathaway, Disney, Target, Unilever, McDonalds, Burger King, etc. There is a good selection of dividend paying stocks as well as growth companies. Additionally, Loyal3 offers easy access to IPOs, which is something that I have yet to participate in. Here’s a great review of Loyal3. And for those of you that are still wondering about the long-term viability of Loyal3, Charles Schwab veterans are among some of the people making up its management!

The great thing about Loyal3 (besides the free commission) is the fact that you can set up recurring investments using a credit card. I get 1% cash back on my credit card purchases so am effectively buying the stocks at a 1% discount already! By doing small amounts frequently I won’t need to worry about the current stock price. Also, the small amount that I’ll be investing won’t be enough to be felt within my budget.

I’m starting off small in order to see how this works. My first trade was a one time purchase of $50 of Berkshire-Hathaway; I also then set up a recurring $25 a month investment into BRK-B. I am also investing $25/month into Disney and Unilever. I’m still going to be devoting the largest portion of my portfolio to purchases of dividend paying stocks within my Schwab portfolio, but Loyal3 will be something fun to try.

My current Loyal3 portfolio can be seen below:

I generally like to have all my investing accounts consolidated into one location because I find that easiest to manage. Still, I decided to give Loyal3 a chance. Worse comes to worse it is very easy to transfer the shares to a different brokerage account.

Do you have an account or have you thought of giving Loyal3 a try?

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2 Responses

  1. I’ve been building a dividend growth portfolio at Loyal3 since the beginning of the year and have had a tremendous amount of success. I started with $300 per month for the first six months, and have bumped that up to $500 for the remainder of the year. Based on my projections, this portfolio will already be generating almost $170 of dividends by the end of the year and because of the ease of reinvestment of the cash generated (only need $10), the snowball will keep on growing rapidly. I’ve used my credit card to fund all of these purchases, while paying it off each time, thus juicing my yield by +1% for each purchase for the first year of ownership. Not a bad way to add a bit of passive income to a portfolio that is already producing passive income.

    Hope you have a good experience as well!
    writing2reality recently posted…Snowball City – Loyal3 DividendsMy Profile

    • scott says:

      I’m off to a good start as well. Seems like an easy enough to use service. I like the fact that you can basically set it up and forget it. I’ll try to bump up the monthly contributions as time goes on too. Another good one (waiting list at this point) is RobinHood (referral link), a commission free brokerage that allows you to invest in all the stocks, though not with a credit card. I’m still waiting to try that one out.

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