ShareBuilder bonus cash - any potential issues?

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Topic Author
snowman
Posts: 1477
Joined: Thu Jan 31, 2013 11:59 am

ShareBuilder bonus cash - any potential issues?

Post by snowman »

I am considering moving some of our IRA assets from TDA to ShareBuilder to collect $1,200 cash bonus ($600 each for myself and my wife). The plan would be to keep it there for 9 months (minimum required period) before moving it back to TDA to (likely) collect same amount of cash. I know many posters here have done this type of round trip to collect bonus cash.

There is no trading in those accounts, so I don't care about pricing or features at ShareBuilder. It would be literally round trip of a few Vanguard ETFs from TDA to SB back to TDA.

For those of you that have moved accounts in the past to collect bonus cash - what are the issues to watch out for? Any ShareBuilder-specific advise?

Thanks for your responses.
placeholder
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Joined: Tue Aug 06, 2013 12:43 pm

Re: ShareBuilder bonus cash - any potential issues?

Post by placeholder »

When you set up the account make sure it is coded for the bonus and after you move confirm with CS that you met the qualifications then check for the bonus to be credited. Follow up if you don't see it. How much do you have to move? You might be better moving 10k to sharebuilder to get 200 bucks and the rest someplace else for another bonus.
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dual
Posts: 1383
Joined: Mon Feb 26, 2007 6:02 pm

Re: ShareBuilder bonus cash - any potential issues?

Post by dual »

Be aware that Sharebulder freezes the bonus so you cannot withdraw it until the lockup period ends, 9 months IIRC.
Topic Author
snowman
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Joined: Thu Jan 31, 2013 11:59 am

Re: ShareBuilder bonus cash - any potential issues?

Post by snowman »

Thank you both for quick responses. I was thinking about moving minimum to get the bonus, so that would be $125K per account. I would only move some ETFs and keep the accounts at TDA open so I can move those ETFs back later (after 9 months). Seems like an easy way to earn free cash, but I am little afraid something might go wrong. I was hoping people that have done it would share their experience, good or bad, so I can determine whether it's worth doing.

At this point in time, I don't see any better offer out there, and I am not interested in opening multiple accounts at multiple brokers (i.e. ShareBuilder and ETrade). I'd like to try it once and see how it goes.
yukon50
Posts: 334
Joined: Thu Jan 13, 2011 7:23 pm

Re: ShareBuilder bonus cash - any potential issues?

Post by yukon50 »

I went for a Sharebuilder bonus: $100 for making 5 trades. I met the bonus and they refused to award the bonus because I had gotten a few bonus in the past from them.

I pleaded with them and they refused to budge.
stlutz
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Joined: Fri Jan 02, 2009 12:08 am

Re: ShareBuilder bonus cash - any potential issues?

Post by stlutz »

but I am little afraid something might go wrong
Quite honestly, things can and do go wrong with account transfers. Such problems do get fixed, but don't be surprised if something doesn't work out correctly. If you purchased the shares prior to 2011, be prepared to lose your cost basis information (i.e. make sure you have all of your records).

Not sure if TDA would frown on the same shares you just transferred out being transferred back in--that is, I wouldn't automatically assume that they will give you a bonus for moving them back.

If you're just holding the shares, you can move them around to other brokers as well (E*Trade, Fidelity come to mind).
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fourwedge
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Joined: Sun Sep 22, 2013 10:10 pm

Re: ShareBuilder bonus cash - any potential issues?

Post by fourwedge »

Do you really think that 1200$ is worth the hassel? That isn't even a half of a good day in the market and to tie up 125K for 9 months when it could have been invested seems crazy. I would invest it and your return will blow that away!
Max out your tax sheltered retirement accounts with inexpensive, well diversified, index funds and you will beat 90% of all investors.
placeholder
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Joined: Tue Aug 06, 2013 12:43 pm

Re: ShareBuilder bonus cash - any potential issues?

Post by placeholder »

The money would be invested since he's moving ETFs. Won't even be out of the market if he does it right.
Topic Author
snowman
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Joined: Thu Jan 31, 2013 11:59 am

Re: ShareBuilder bonus cash - any potential issues?

Post by snowman »

Thank you all for replies.

Things can always go wrong with transfers, that's why I never bothered with them. It just did not seem like it's worth the hassle. On the other hand, it seems like many people do it, moving some of their assets between brokerage houses to earn risk-free cash. Sometimes (not always, depending on current promo language), you can move those assets back to where they were before, and earn cash bonus again. We don't trade in those accounts, so it makes no difference to us who the custodian is at the moment. We will not lose Apex status at TDA even if we move some of those assets elsewhere.

As long as one does partial in-kind transfer, there "should" be no issue. If there is one, it "should" be fixed. I was hoping to get feedback from people that have actually done it and could confirm that new broker handles transfer correctly, and deposits bonus cash into account as promised. I wanted to know whether this is fairly automated process with few occasional mistakes, or whether you need to stay on top of it calling CS to make sure you get the bonus. If it's the former, it's worth my time to open an account and fill out the transfer form; if it's the latter, I am not really interested.
placeholder
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Joined: Tue Aug 06, 2013 12:43 pm

Re: ShareBuilder bonus cash - any potential issues?

Post by placeholder »

I did not transfer to SB but I deposited 10k cash for the $200 bonus. That was added to my account three days later. Also got $50 to open and deposit 5k in a Roth. I have found their CS to be very responsive.
Topic Author
snowman
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Joined: Thu Jan 31, 2013 11:59 am

Re: ShareBuilder bonus cash - any potential issues?

Post by snowman »

placeholder wrote:I did not transfer to SB but I deposited 10k cash for the $200 bonus. That was added to my account three days later. Also got $50 to open and deposit 5k in a Roth. I have found their CS to be very responsive.
Thanks for your post, placeholder.
placeholder
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Joined: Tue Aug 06, 2013 12:43 pm

Re: ShareBuilder bonus cash - any potential issues?

Post by placeholder »

Looked at their transfer tab. Might be able to set up the ACATS online which is easier than filling out a form to fax like to TDA. At any rate it's not much work for 600 bucks. Go for it!
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