$100 Referral Bonus at TradeKing

$100 Sign Up Referral Bonus at TradeKing
Free money! It is something that we all love. Just stop and think about how many times you have done something or tried something new just for the money. Not a lot?  Well, okay, maybe it is just me, but when someone tosses down a free $100 cash just for signing up - I tend to look twice.

And this offer did make me look twice. It is more geared towards the existing customers taking the initiative in bringing in new friends to TradeKing.com as it does not also award the new customer with $100 as well. They do offer the new customer a $150 refund of transfer fees, but I thought that was standard practice - it may have changed though? I thought this was a bit strange. Usually offers like this award both the new and old customer alike.

Here is the sample email that will be sent to you if decide to send it out to your friends

Hi -
 
I'd love for you to check out my online broker, TradeKing.com. They're growing like gangbusters thanks to word-of-mouth referrals. So to show their gratitude, they're now offering us both a great deal with their “Refer a Friend” program.

Whenever someone I refer funds a new account with $1,000 or more and makes their first trade, TradeKing will automatically deposit a Benjamin - 100 bucks! - into my account. Plus they’ll reimburse up to $150 in account transfer fees for you.

I'm not just in it for the $100. TradeKing has been consistently recognized as one of the best online brokers in the business* and gives you a lot of bang for your buck-just $4.95 per trade. And I'm not the only one who thinks so:

SmartMoney gave TradeKing the maximum 5-star rating for customer service and trading tools in 2008 and 2009

Barron's awarded TradeKing 4 out of 5 stars and singled them out in both the "Best for Option Traders" and "Best for Long-Term Investing" categories

Kiplinger's says "TradeKing reigns" in customer service, awarding them their highest rating of five stars

I'm sure you'll love TradeKing as much as I do. Once you've opened an account, you can earn money for every friend you refer, too. Just make sure you click the link below when you sign up, so they'll know I sent you.

Do not get me wrong. I love TradeKing, but I was hoping the deal would be a bit sweeter of for the new customers as well. If you are still interested in becoming a new investor at TradeKing - I would be more than happy to send you a referral link.

What free money deals in the past have made you sign up or join a new service? Let us know in the comments.

FrankenTech

Success! Finally!
As I sit here writing this I am finally experiencing the relief and joy that only comes as you patiently watch as Ubuntu installs on your newly assembled system.

I have come a long way in building computers and playing around with them. This recent construction project was a ground up approach. I bought the pieces all separately and began assembling them inside a old case that I owned, an eMachines computer that followed the rest to a sudden and unexpected death. Unexpected until I read story after story of the poor quality power supplies, Bestec, that failed and consequently fried your motherboard one day.

I took my time and downloaded the manual for this board as it was slightly used and verified and checked myself at every step. I was being a bit more meticulous than I usually am when tinkering around with my old PII's or PIII's I have cluttering up my basement much to the ire of my wife.

This build was slow and methodical and I was like a kid waiting for Christmas when I pushed the power button for the first time only to have my hopes dashed as nothing appeared on the monitor. The fans were running but nothing was happening.

A note that I think should be made about using a motherboard from someone else - it might be a good idea to clear the CMOS settings back to factory default to prevent the system from running as it shouldn't - overclocked when you weren't expecting it. If you knew how it was ran before and under what setup - then this might not apply.

My system will not boot!
Two possible choices - software failure or hardware failure.
Since I wasn't even making it to POST, power on self test, or even the memory count, I couldn't even enter the BIOS. Software was definitely not my problem.
I actually found this website to be the most helpful in uncovering the root of my problem.
http://www.daniweb.com/forums/thread27079.html#

As you guessed, I had built the system and wanted it to just run perfectly the first time it powered up. It was not to be. So following the general advice of a trouble shooter I eliminated possibilites and started with a barebones system.
Still, with only the motherboard, one good stick of RAM, and the CPU with heatsink - -nothing was happening. Edit - I was seeing the motherboard graphic appear on the monitor about half of the time.
Since the system was not even entering the BIOS portion of the boot sequence I knew there was a problem with my barebones system. Had I received a bad board?

I tried the advice listed in the website above and swapped out the CMOS battery.
Voila! The motherboard graphic on screen gave way to a RAM count and a system halt on the error of no floppy drive connected. I was in!
This is where I made my next mistake. Thinking I had solved all of my problems I promptly reconnected everything again and triumphantly pressed the power button only to see the motherboard graphic stare me in the face and refuse to proceed on to the normal boot sequence.

Now what? Back to the basics. Try it, yes it works. Okay, back to trouble shooting mode.
One by one I reconnected the floppy, test, the optical drive, test, and the hard drive, test. And I failed.
Now what? Was it the IDE channel, the cable, the drive, or a jumper setting? First, I swapped cables. Test - failed. Cable is not the problem.

Secondly, I swapped drives because I could see the jumper setting and had verified it was set to master. Test - failed. Drive was not the problem.
Finally, I tried a third hard drive that was actually working and not supposed to be an empty drive. Test - successful.

Then I connected my first attempted HDD as the slave. Test - failed.
Why? Oh, yeah, switch the jumper on my drive to slave if I am going to have two hooked up. Test - Successful.
Then I realized that this supposedly empty drive must not have been empty and may have been used previously as a slave and did not like being hooked up as a master.
Next I rechecked that jumper. I switched it to cable select instead of master. Test - successful

I reset up the original configuration, including resetting the jumper pin on the hard drive this time to cable select, knowing the drive worked and popped in my install cd and let the installer tell the drive how to behave.
The result - just as I finished writing this, my installation of Ubuntu is complete and I am smiling once again!

Lessons learned -
That CMOS battery is actually important.
Don't disregard the rules of trouble shooting. Eliminate possibilities and work slowly not skipping ahead cause your excited.
Provide a flow diagram that visually shows the steps and the tests and their outcomes.

Here is something else that might help. What are those POST codes?
http://www.postcodemaster.com/

I am reinstalling windows on an upgraded machine and now my recovery discs don't work!
http://www.physicsforums.com/archive/index.php/t-252418.html
-Yes, call Microsoft to get an activation code and download an iso, also slipstream in sata driver support.
Or use a Dell recovery cd with your own coa, certificate of authenticity.

The Four Pillars of Investing Part 8

This is a multi part series dedicated to the review of  William Bernstein's book The Four Pillars of Investing.
Numbered Page references are from the hardcover edition.


Chapter 14 Getting started, keeping going
Make the switch to your new portfolio the same day. Once you have arrived at the allocation the next step is portfolio rebalancing.

Starting out and avoiding fees use the dollar cost averaging approach. One better than that though is the value averaging approach described by Michael Edleson. Same target investment amount each month, but in the account. If the account is down, pour it on. If the account is up, pour on less. Technically, you could reach your yearly goal of contributions sooner than the year, or a bit longer. It is suggested that this not be done with ETF’s because of the additional transaction fees would be too great. Two to three years for funding is good because a market correction should occur giving you maximum benefit. The benefit is the experience of investing regularly even during times of pessimism and fear – a very useful skill indeed.

Play the long game. You get more return if you portfolio rebalance once every few years. Reduce risk by diversifying. The psychological conditioning of being a financial contrarian is just what you need to retire rich. You must sell when it is all the rave and buy when all are crying doom. That is how you win in poker, and how you win in the long game of investing. When the chips are down, it will not bother you too much to toss a few more coins into the pot when everyone around you is folding his hand.  Again be wary of tax consequences if doing this in a taxable account. Tax sheltered could rebalance more often, but it is not suggested more than 2-3 years because sometimes it takes that long for a trend to run its course. Remember the five years on the five asset classes.

Two advantages of the small investor. When confronted with a downturn, a smaller portion of the portfolio is exposed and therefore you will be less worried.  Rebalancing in retirement is just the opposite of when your portfolio is growing due to your savings. You just withdraw from the sectors that have grown too large, again selling when they are high.

Again, if in need of help. Hire only a fee based advisor.

The Four Pillars of Investing Part 7

This is a multi part series dedicated to the review of  William Bernstein's book The Four Pillars of Investing.
Numbered Page references are from the hardcover edition.

Chapter 13 – Defining your mix
Analogy to building a house to protect you – the same for your investments – protection, not wild speculation.
Bricks - Total US Stock Market – Wilshire 5000, S&P 500, Russell 3000. This can be further split into the four corners, large and small, growth and value. Small funds are less suitable for taxable accounts due to turnover and cap gains. In addition to the four corners, also add in REITs.
Timbers - Next consider total international funds.  Can be also split into Emerging Markets, Europe, Japan, Pacific Rim, and the UK.
Shingles – Bonds – keep them short term. Longer term carries too much risk for diminishing returns. Included are government securities, corporate bonds, municipal bonds. Keep these in taxable accounts for they are already tax advantaged, and can double as your emergency fund as they are easily accessible.
Keep track of tax efficiency. REITs and junk bonds should be tax sheltered because they pay returns in the form of dividends.

Taxable Ted – Lump Sum – No tax shelter –
Stocks 40% Total US Stock Management;20% Tax Managed Small Cap; 25% Tax Managed International;15% REITs inside a Variable Annuity.
Bonds – 25% to each; Treasury ladder; Short term Corporate; Limited Term tax exempt; California Intermediate term tax exempt.
Recall the pilot simulation that crashes versus real life actions. Have you ever lost 25% of your portfolio value?

Sheltered Sam – all Pension
20% S&P 500; 25% Value Index; 5% Small Cap; 15% Small Cap Value; 10% REIT; 3% Precious Metals; 5% European; 5%Pacific; 5%Emerging; 7% International Value;
Bonds – 60%Short Term Corporate; 40%TIPS;

Young Yvonne – 12% S&P 500; 15% Value; 3% Small Cap; 9% Small Cap Value; 6% REIT;1.8% Precious Metals; 3% Europe; 3% Pacific; 3% Emerging; 4.2% International Value; 40% Bonds/Cash
To start, she should put $0-$5000 towards S&P 500, then $5000-$10,000 add International Fund, 3. $10k-15k add REIT, then 4. $15k-20k add Small Cap and so on. This means in the second $5k added, only $1500 goes to total international fund. The other $3500 is split between the S&P 500 and money market. And by the time $15k is added only $1000 will be put into REIT, thus conserving her targeted ratio while growing the portfolio and avoiding low balance fees adding funds after each $5k contributed.

Teach your children well, please. He suggests when they are ten that they get an account and each quarter a lesson. This way they can view the effects of the market going up AND going down. Then they will be competent investors.

Your portfolio will vary based on what makes you feel good and your tolerance for tracking error – the difference in your portfolio and that of a major index like the S&P 500. Do not own too much, or sometimes even too much of the same sector, as your job. Remember the poor Enron employees.

The Four Pillars of Investing Part 6

This is a multi part series dedicated to the review of  William Bernstein's book The Four Pillars of Investing.
Numbered Page references are from the hardcover edition.

Value = Bad Companies = higher risk = higher return
Small or Emerging Markets = higher risk = higher return

Chapter 11 – The press isn’t very helpful either
Financial journalists do not have financial degrees – they just write for their jobs. Those that know the truth are few and it is boring to advocate dull index funds. Do not listen to the media, instead focus on the history books. With that are some book recommendations.
•    A Random Walk Down Wall Street, by Burton Malkiel
•    Common Sense on Mutual Funds, by John Bogle

*************************
My own thoughts here. The book thrives on the idea that the more history that you learn, the better off that you will be. This book is filled with stories of the past to illustrate its points. Sometimes it can be a bit much if you are already sold on the idea. The last half of the book looks to be the part that many people actually pick it up: Putting it all together. Everyone just wants the end game result and forgets that much can be learned from the journey.


Chapter 12 – Will you have enough?
There is little difference in calculating the money you will need for retirement if you live for 35 years or forever. Best case scenario is Roth IRA, pulling 4% annually from your funds earning 4% real returns. No taxes, constant returns. For $40,000 you need $1 million. Reverse amortization to die with nothing left over after 35 years = $746,585.

Best case scenario yet presented is pages 231-234 and the plots showing sample asset allocations with varying degrees of stocks and bonds and different withdrawal rates.  Starting at the beginning of a bear market in 1966, only the funds pulling out 4% survived with cash to the end from an initial balance of $1 million. (Fidelity’s my plan works these numbers nicely, as does Ing’s What’s my number?)
Moral of the story. Save lots of money and start early. These are the mantras of investing for retirement.
A note on making sure before you start that you have an emergency fund (following Dave Ramsey’s steps) before you begin. Do not invest with money you need in five years into stocks. College savings in a 429 are suggested to be heavy on the bond side since the term is intermediate and stocks can have a bout of bad years. 

The Four Pillars of Investing Part 5

This is a multi part series dedicated to the review of  William Bernstein's book The Four Pillars of Investing.
Numbered Page references are from the hardcover edition.

Value = Bad Companies = higher risk = higher return
Small or Emerging Markets = higher risk = higher return

Pillar Four – The Business of Investing
Legs of the industry: Brokerages, Mutual Funds, Press. Each has the goal to transfer your wealth to their own pockets.

Chapter 9 – Your broker is not your buddy
Brokers need trades to make money. They do not require a higher education or regulations. They have no fiduciary responsibility to their clients. Fiduciary means to put the client’s best interests first. Doctors, lawyers, bankers and accountants have it – stockbrokers do not.

The betrayal of Charlie Merrill story. He tried to restore public confidence in Wall Street and took away commissions from his brokers. It didn’t last forever. Fees are easy to hide and are very high. They also collect on the spread between the bid and ask prices. Your broker is there to sell you a product and he is compensated on his sales and care not for your overall return. Do not engage a full-service brokerage. Instead, get a fee based advisor.

Chapter 10 – Neither is your Mutual Fund
Load funds charge you a sales charge on the way in or on the way out. The sales fee is a loss to your overall return and does not guarantee a better fund performance. Story of Fidelity’s Select Technology fund positive performance, sudden bloat in assets after advertising , and subsequent years of loss. Investment firm or marketing firm? Advertising, creating products to sell, raising fees.

The 401(k) briar patch is suggested to be the next big government bailout because now there is a nation of ill-advised employees contributing to their retirement and may not realize even the average market return. Employers focus on the services provided by the fund company – the record keeping and forget the cost to the employees. Most plans do not have an index fund. Suggestion? Request a change or quit and roll it over to your own IRA.

Story of Jack Bogle fulfilling Merrill’s dream through the creation of the true mutual fund service company that is owned by the fund which is owned by the shareholders. The idea is to keep costs low. Examples include other mutual companies. (PMT is one) He also started index funds.  If your 401(k) does not offer index – go with T. Rowe Price, Dodge & Cox, and Bridgeway. ETF’s are new but also good.

Lending Club Helps to Pay Your Holiday Bills Offer

I just received this $100 offer in my inbox this morning from Lending Club. This promotion is good for existing members and new members and is targeted at signing up more borrowers. The promotion is marketed towardds helping you pay off all of your holiday bills that you so recently racked up. However, you can get a loan for whatever your needs may be - balance transfers, pay off high interest balances, home improvement, etc. All you need to do is apply for a loan through your borrower account. If you are already an investor you just create a new account as a borrower. Here is the fine print.

*To qualify for the one time $100 payment, your issued loan must be between $12,000 and $25,000. You will receive your $100 payment within 30 days after your loan is issued. Offer available only to borrower members who apply for a loan after Monday January 11,2010.

 I hope to have a link here in the future pointing towards a more detailed review of Lending Club and Peer to Peer investing overall.