Brokerage promos?
Jan 19, 2005 | 2:36 pm
#32
Join Date: Mar 2004
Posts: 502
Originally Posted by ultraman
I did 7 accounts:
myself, wife, son, daughter, Joint Tenants, Tenants in Common, JT right of surviorship for 140,000 starwood points.
If I close these and try to open a new account in a year will they give points?
myself, wife, son, daughter, Joint Tenants, Tenants in Common, JT right of surviorship for 140,000 starwood points.
If I close these and try to open a new account in a year will they give points?
Ultraman,
Once again, you are the man (I'm still happy about the HELOC bonanza)! I didn't think about the creative account options.
I've been holding off on the Ameritrade/Starwood deal because I'm not sure where to put the money at Ameritrade. I called them about putting the money in a money market and they gave me a very complicated answer about a 3rd party vendor whose webpage seemed even more complex. I couldn't find the answer to the simple question of what interest rate they would offer on a money market for $25,000.00. For ease of tax reporting, I prefer not to transfer my stocks and mutual funds to Ameritrade and that leaves me with cash or cash equivalent (I don't plan on doing any trading at Ameritrade).
That leaves me with an assumed interest rate dilemma. I can earn 3% on a 1 year CD. For ease of math, if you put $25,000.00 in the bank for 1 year at 3% you end up with $750. If Ameritrade isn't competitive, let's say they give you 1.5%, then you are missing $375 by leaving your money at Ameritrade. I wouldn't pay $375 for 20,000 starpoints (although I do value them very highly and this is somewhat of a close call). I realize that the holding period is now 9 months so the final figure is less than $375. But, I still wonder how you are pulling this off. Are you getting a decent interest rate at Ameritrade or are you using them for trading or do you value the starpoints at higher than the value of the lost interest--assuming there is lost interest.
I figure you have this completely wired. Can you tell me how you are doing it? Thanks
SDFLYER
Jan 19, 2005 | 9:19 pm
#34
Join Date: Jun 2004
Programs: No More Loyalty
Posts: 608
Originally Posted by sdflyer04
I've been holding off on the Ameritrade/Starwood deal because I'm not sure where to put the money at Ameritrade. I called them about putting the money in a money market and they gave me a very complicated answer about a 3rd party vendor whose webpage seemed even more complex. I couldn't find the answer to the simple question of what interest rate they would offer on a money market for $25,000.00. For ease of tax reporting, I prefer not to transfer my stocks and mutual funds to Ameritrade and that leaves me with cash or cash equivalent (I don't plan on doing any trading at Ameritrade).
Most of my Ameritrade account is in stocks, but the annualized interest rate on my univested cash balance last month (about $4k) was about 1/10th of 1 percent. Frankly, I wouldn't expect the rate on $25k to be all that much higher. I haven't looked into the money market option, but I know it's not as simple as it is at Fidelity and other brokers where univested cash is automatically swept into a money market option that you choose.
Jan 20, 2005 | 11:27 am
#35
Join Date: Mar 2004
Posts: 502
Originally Posted by Sirecca
I don't know your specific situation, but transferring exsiting stock/fund holdings does not create a taxable event.
Most of my Ameritrade account is in stocks, but the annualized interest rate on my univested cash balance last month (about $4k) was about 1/10th of 1 percent. Frankly, I wouldn't expect the rate on $25k to be all that much higher. I haven't looked into the money market option, but I know it's not as simple as it is at Fidelity and other brokers where univested cash is automatically swept into a money market option that you choose.
Most of my Ameritrade account is in stocks, but the annualized interest rate on my univested cash balance last month (about $4k) was about 1/10th of 1 percent. Frankly, I wouldn't expect the rate on $25k to be all that much higher. I haven't looked into the money market option, but I know it's not as simple as it is at Fidelity and other brokers where univested cash is automatically swept into a money market option that you choose.
Thanks for the interest rate info. This seems to confirm my concern about simply putting cash into Ameritrade for 9 months. If you are getting 1/10th of 1 percent at Ameritrade and you can get 3% in a bank, I don't think the points you earn are worth the lost interest (although I'll admit that some uses of points potentially could be worth it, I just think the ballpark of $700 for 20,000 points seems out of the payoff range for me).
I guess that I should reconsider the hassles of transferring stock to Ameritrade. That seems like a way this could still make sense. My biggest concern is just the record keeping aspects of transferring some of my holdings (and likely transferring them back). In addition, it looks like Ameritrade would extract a small pound of flesh if/when you transfer the stocks or mutual funds back out. If you add on the complexities of changing the ownership of the mutual funds, I'm not sure if this is worth the effort in a big way. I own most of my funds jointly with my spouse. I could divide them up and hold them individually and hold some jointly, etc. as Ultraman outlined. But, would that have tax implications and/or what would the tax accounting look like with multiple transfers.
What have others done on this promotion? Cash? Stocks or mutual funds? What were the fees for moving them in and out and did you change ownership structures?
Thanks.
SDFLYER