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Posts Tagged ‘stock’

Real estate investment compared to stock

October 31, 2008 Leave a comment

I just went ahead to research the house price history and found that it’s pretty good. From 1975 to 2000 (before the house bubble), California index went from 16 to 100, which is 625% overall gain, in 25 years. These 2 pages have interesting charts:

http://mysite.verizon.net/vodkajim/housingbubble/
http://investmenttools.com/median_and_average_sales_prices_of_houses_sold_in_the_us.htm

At the same time range (1975 to 2000):

S&P 500 went from 86 to 1420 (1650%)
DJ index: 800 to 10635 (1328%)
401K at 10%: 100 to 1092 (1092%) (before tax) – refer to my tool page: http://onlinedisk.us/mf.asp

First, that shows again that index fund is not bad at all. I’m not confident that I can select a mutual fund that does 10%+ every year for 25 years.

Secondly, real estate investment is good since your cost is only 25% down payment. Let’s do a math:

You put $100 down to buy a $400 house with no on-going cost, and same amount in stock. 25 years later:

– the house is $400*6.25 = $2500
– S&P500 is $100*16.50  $1650
– DJ is $100*13.28 = $1328
– 401K is $1092

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Categories: Finance Tags: , , ,

Zero $0 commission on stock trading

December 19, 2007 Leave a comment

Update on 6/1: Now you have to have over $25,000 balance to have the 10 free trade every month. Otherwise it’s $4.5.


Oops, forgot the small print – restrictions applied.

Zecco.com offers 10 free trade every month as long as your balance (cash and stock market value) is over $2500. After 10 free trades or lower balance, you pay $4.5. Well, that’s still cheaper than most of the online brokers. I have opened an account, and placed 2 free trades already. So far so good. I don’t see any catch here. For small investors who place less than a dozen trades every month, this is just perfect!! If you sign up using this link:

http://friends.zecco.com/r/8c4fd326ffaf102a8555

I will get $50 credit. Hey, I will split it with you. 😉

They say they can offer free trade because they do not provide other services other than online trading. I don’t know what services Fidelity could give me when they charge me $19 a trade. I do all the research myself and just need basic trading. $2500 balance? That’s the minimum to have any excitement in stock market, isn’t it?

They also say online brokerage earn most of the income from margin account interest so they can use free trade to attract account signups. That’s perfect for me since I don’t use margin. In a sense, the 10 free trade is also a kind of “reminder” that restrain me from excess trading.

Zecco doesn’t have extended hour trading. The web interface is not the best one I have seen. But, for free trades, it’s acceptable.

For those trade more, you can consider http://www.just2trade.com. They charge straight $2.5 a trade no matter what your balance is and no limit of trades. I don’t have an account but from my research I haven’t seen anyone saying bad on them yet. But anyhow, I’ll no longer trade with Fidelity.

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