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Inexpensive And Easy Way To Purchase A Group Of Stocks

Thursday, September 27, 2012 - 4:41 AM
If you had been considering buying a bunch of stocks (perhaps to generate dividends), a new online brokerage has a way to make this cheap and easy. It's called Motif Investing, and it allows you to invest in a group of up to 30 individual stocks that fit into a theme (like utilities or dogs of the Dow). You can buy all stocks in a motif with just one $9.95 commission with no management fees. Unlike mutual funds, you can buy and sell the stocks whenever you like. This My Money Blog post has a good review of Motif Investing and how it might be used to buy high dividend stocks.
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Ken TuminKen Tumin5,442 posts since
Nov 29, 2009
Rep Points: 123,713
1. Thursday, September 27, 2012 - 3:56 PM
Looks very intriguing; I'm seriously considering opening an account with Motif Investing. Too bad the $150 bonus is not applicable for IRA accounts (on the other hand, at least IRAs are no fee). Thanks, Ken, for posting the information and for all of your informative posts and articles in matters of finance.
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WilWil242 posts since
Feb 26, 2010
Rep Points: 1,281
2. Wednesday, October 3, 2012 - 8:19 AM
Update: I'm in the process of opening an account with Motif Investing. First, after registering on the website, you have to respond to an e-mail in order to confirm your e-mail address. Next, you login to your "account" and complete the online application for a brokerage account and wait for an e-mail confirming that your account has been processed. After you receive that e-mail, you provide your funding instructions (either ACH, wire transfer, or mailed check). If ACH is chosen, as I did, you have to wait for the two trial deposits in your bank account (I'm sure most readers here are familiar with this process) and, once they have appeared, you login to your account to confirm the trial deposit amounts. Then you are ready to fund your account by ACH and, once funded, are ready for trading. This process will likely take a few days to complete, which is not a bad idea, as it gives you time to reconsider what you are doing. Incidentally, they say it will take one or two days to process your account opening, but in fact it only took a few hours. I opened a ROTH IRA; but if you are considering a regular (i.e. taxable) account, you might want to give some thought to how your holdings will be taxed. Unlike a mutual fund or ETF, you will be owning the stocks in the motif directly, so each stock will be treated, for tax purposes, as individual buys and sells.
5
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,281
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