New Amex Benefits Recap

Thanks for the uptick in traffic from from Gary Leff’s blog yesterday for all time high page views. So I guess it was worth it to stay up to 2 am to see if I could get a free Uber delivered omelet. Just to sum everything that happened:

  • Sign up for Uber and UberEATS using my referral links to get a first ride free and $15 for food use code: “eats-gs9p8”
  • If You haven’t gotten an AmEx Platinum, please use this link to get 60k points for $5k spend in 90 days. Make sure you apply the SCRA to waive the new $550 annual fee
  • Link your existing Amex Platinum(s) under payments to Uber and your $15 should show up per card, if not, delete and re-add the card
  • An email should be received to validate the linked AmEx account
  • Reports have been made that adding a spouse card or a friends card to a single Uber account will pool all the points to a singe app
  • Take an Uber and the fare will be taken from the credits. This resets every month and will bump up to $35 for December
  • The day is defined by the time zone that your billing address goes to. You have till midnight of your billing time zone to use March 2017’s $15
  • Order from Uber eats and the credit will be applied at delivery from the Uber app credit
  • Call, online chat, or use the website to get a metal card replacement. The option should be there
  • These benefits apply for all branded Personal Platinum products: Schwab, Morgan Stanley, Ameriprise, MB, and Goldman Sachs
  • This does not apply for Business Platinum

If you haven’t used your credit for March 2017, you might as well use the UberEATS by the end of day today. If your not in the area that Uber or UberEATS serves, just use it to send some food or a car to a friend in another market. Better yet, just send it to some random person to see if confusion will ensue.

-Derp

 

UBER Eats Works For $15 AmEx Monthly Credit

This post was originally written for the day of 30 April 2017 when the Uber Credits took effect. Go ahead and skip to the middle to read about Uber eats, and please use this LINK HERE if you are at all interested in the product to toss points my way!

I just called customer service for my Morgan Stanley AmEx at 1-800-441-0519, and I got to say, the MS service is a bit of a step up from the basic AmEx Platinum line. They answered in 2 rings and acknowledged my prestigious relationship with Morgan Stanley. Anyways they gave me a special link here to use to get my replacement metallic card starting now (Midnight Mountain Time). However the link went live at 11:30 Central time, 1.5 hours ahead of schedule. You could call or use the online chat to order a new card as well. They said the Uber takes effect at the same time, so 1 am Central, 2 am Eastern, 3 pm Japan Time. They said they anticipate on being swamped by requests on the phone, so this link is the best way to get the replacement card. The URL is: https://www.americanexpress.com/cardreplacement or online chat.

Not successful requesting a MB card or cards for other AUs. I did order a Charles Schwab one no problem for myself, but had troubles linking it to Uber (in the end it worked). I got my Morgan Stanley so recently (Monday 27 Mar) that they would not allow me a replacement.

I could only get the regular or the Schwab, but they promised me 24 hr free delivery. So the workers at the factory are going to be busy tonight!

Its a shame that the MB did not have a option to upgrade since MB one looks nice now with its single 3 point star logo.

UBER Credit works for food

Next line of business is the Uber $15 credit is good from 0001 30 March 2017  to 2359 31 March 2017 and resets at 0001 01 April 2017. That means we have 48 hours to spend $15 given into the Uber App for each primary personal Platnum card account(s). This Uber Credit will appear as $15 per card in the linked Uber accounts. The credit bumps up to $35 per card in December for a cool $200 a year. This means you may have to keep track of what card you used and when in order to maximize the credit for every account. The credit just shows up in a single pool, even reports of spousal or friend’s primary accounts added to one giant credit pool.

Like the airline credit, this is only $15 per account, per month. I went ahead and ordered a Phily Steak Omelet from Denny’s using the Uber Credit on Uber eats. I wanted to be the first datapoint for everyone’s real use of the Uber Credit (for March 2017 at least).

There it a little green credits box next to my card. I got my omelet after waiting an hour and the credit was deducted from my $60. An email came for a grand total of $0.00! So you can use the credit for UberEATS! I guess they truly are trying to compete with Chase Sapphire Reserve which gave $300 for Uber and Uber Eats as “travel”.

So yummy!

The UberEats app it took it out of my $60 Uber credit for my 4 Personal Platinum Cards:

and it charged my card $0.00:

Enjoy it while it lasts, hopefully the RAT doesn’t shut it down like the United MPX loophole. Keep in mind that this bonus resets every month, use it or lose it!

-Derp

No Limit on AmEx Charge Cards?

Just in time for $15 Uber and another $200 United credit I went ahead and got myself a Morgan Stanley AmEx Platinum. The application link is here. You could just apply, but I am sure if you don’t have a relationship with them either with an employee sponsored account or personal brokerage account they can cancel your card!

The application says:

You must have an eligible Morgan Stanley Smith Barney brokerage account to apply for and use the Card. Please see below for further information regarding eligible accounts.

The Platinum Card®from American Express Exclusively for Morgan Stanley is only available to you if you have an Eligible Morgan Stanley Smith Barney LLC brokerage Account (“Eligible Account”). Eligible Account means a Morgan Stanley Smith Barney LLC (“Morgan Stanley”) brokerage account held in your name or in the name of a revocable trust where you are the grantor and trustee, except for the following accounts: Charitable Remainder Annuity Trusts, Charitable Remainder Unitrusts, irrevocable trusts and employer-sponsored accounts. Eligibility is subject to change.
American Express may cancel your Card Account and participation in this program, if you do not maintain an Eligible Morgan Stanley brokerage Account.
Morgan Stanley may compensate your Financial Advisor and other employees in connection with your acquisition or use of The Platinum Card®from American Express Exclusively for Morgan Stanley.

I asked my advisor if he gets a kickback for the card, but he said he does not. He said they would waive the annual fee for clients that have $1,000,000 while sending every direct deposit into my Morgan Stanley account. I had a much easier way to waive the fee which was the SCRA waivers.

I ended up opening a 529 college savings plan with them which unfortunately had a 3.5% front end loading fee. They only offered me only the State of Illinois one which is all Oppenhimer Funds by Bright Start. This has the advantage of contributions being deductible on my state return, but since I don’t pay any taxes on active duty pay, then it’s a moot point.

If you wanted to start a 529 with the State of Illinois, then go right to the source. Without an advisor fee of 3.5% as well as the minimum contribution requirement of $10,000 you would save a lot. Keep in mind I am doing this just to start the Morgan Stanley Relationship to get the card.

On $10k invested to have the lower cost Oppenhimer Bright Start A/B 0-6 A (OBGHA). My Morgan Stanley advisor convinced me to put in $10k for the A Class shares although I could certainly have done less. One advisor I called in Lake Forest practically hung up on me when I said I had $2,500 to invest. He didn’t even want to touch my basic bitch money.

However the minimum is $25 directly with Bright Start. I paid $350 in fees which was more than compensated for by the $200 yearly Uber, $200 yearly United and 50,000 MR for $1,000 spend. If we took the cash option on 50k MR via Schwab, we’re looking at a reverse front load of $625. With the SCRA annual fee waiver of the new $550 fee we actually got paid $275 to have a relation with Morgan Stanley with $400 in annual dividends with Uber and United Credit. This my friend is a substantial payout.

What is noteworthy is that I may have exceeded the theoretical limit for Charge cards. We all know that 5 is the limit for AmEx Credit Cards and I have wasted a hard pull attempting to get a 6th, but was denied. Currently I have 6 charge cards: Regular, Busisness, MB, MS, CS, Gold. Now I am not sure if they count the busisness one as separate. Only way to tell for sure is to get the Ameriprise Gold and Platinum!

The theoretical limit may be the entire universe of charge cards that AmEx offers. Just missing Centurion and Goldman Sachs! If you are already done with your Biz, Personal, MB, and Schwab churn it might be worthwhile to look at Morgan Stanley. Just be careful of a lot of there advisor fees. There is only one other O-3 that has the MS Plat, and he got it from a old employee shareholder plan management account. Some shareholder services are with Morgan Stanley which would allow for this relationship. Like Amazon and other companies with restricted stock options.

-Derp

REITs the New Kid On The Block

Reader TWoK brings up a good point of earning 7.6% in dividends in a REIT called Senior Housing Properties Trust traded as SNH on the market. Now the previous article was just about dividends from partial ownership of a publicly traded company. Today we will talk about trusts that own and manage property. This security is called a real Estate Investment Trust or REIT. This is a way to become somewhat of a landlord without the hassle of flipping houses, shaking down deadbeat tenants for rent, and getting your hands dirty. You don’t have to be a sucker and watch these losers try to sell you on their system:

Plenty of ETFs out there dealing with REITs, and three on the Schwab OneSource. There is also an incomplete list on Wikipedia. A quick screen resulted in 15 individual REITs that exceed 6% on a 5 year adv.

Note RAS is a Dividend Dog, 11% dividend on a $3 stock! Too bad it was worth over $100 before the crisis in 2008! Also their P/E is a -94.3, so best avoid. Check out ALPS Sector Dividend Dogs ETF (SDOG) on Schwab OneSource for more

There are 10 Classes of supply for the military that keep everything nice and tidy so you can appreciate the 11 Sectors of industry developed in 1999 by MSCI and Standard & Poor’s (S&P) for use by the global financial community. Every major company that is publicly traded is categorized with this method. Why REITs are such a hot topic now is because in 2014 they proposed REITs as a new sector, and after the close of trade on Aug. 31, 2016, Equity REITs and other listed real estate companies were transferred from the Financials Sector of the Global Industry Classification Standard (GICS) to a new Real Estate Sector.

This sector isn’t even a year old! Think back to ‘The Graduate’ when he was given the advice to go into plastics, a new industry. Or even the advice to go into biotech or e-commerce. These REITs are often sold to investors as a hot new sector that you can get in the ground floor of, despite being around since 1960 when they snuck it into the Cigar Excise Tax Extension. Don’t get too caught up in the hype, REITs are just the sexy buzzword of this year!

Keep in mind since these are publicly traded trusts, they are already included in the S&P 500 because the index must represent all 11 sectors. A list of these companies you already own with C and S Fund are shown here. Notice how Senior Housing Properties Trust (SNH) was added on 12/18/2009 to the S&P 400 Index of MidCap companies. If you were invested in the S Fund of TSP or even the VTI ETF you got a tiny little piece of that 7.6% dividend. You can always increase your position to capture more of that, but I’m all about total portfolio diversity here.

How these things work is shares of the trust are sold to raise money for the trust. The trust then use the money to buy and manage property. The law forces 90% of profits of the trust to be distributed as dividends to the shareholder. This is unlike a company can say no dividends like BRK.A, or no voting like those assholes at Snap Chat for share holders. The trust collects rents or sells property and 90% of that profit is split up to all the shareholders. Something like Senior Housing Properties Trust has retuned an impressive 7.6% in dividends last year.

Now how do you pick a good REIT? I have no idea because I am in the business of teeth and not how to run a real estate empire. With so many sub categories of the REIT sector such as apartments, hospitals, hotels, industrial facilities, infrastructure, nursing homes, offices, shopping malls, storage centers, student housing, and timberlands there is no way to tell what will be hot in the future. Could you imagine owning a mall in the time of Amazon and Otaku Culture? Not going to have too much growth. I am pretty happy with my tiny position in the F and S fund, not ready to throw more money into it just yet.

-Derp

Dividend Investing: Stock Price Isn’t Everything

There is a wonderful (now defunct) blog out there called The Conservative Income Investor written by  Tim McAleenan Jr. He’s gone subscription based and I’m too much of a cheap ass to pay for that. For no fee, there are a bunch of original and very unpopular anti-YOLO articles going back to 2013 about saving money and investing for wealth generation. His one article about the stealthly wealthy  with a quote from Benjamin Franklin:

Remember that money is of the prolific, generating nature. Money can beget money, and its offspring can beget more, and so on. Five shillings turned is six, turned again it is seven and three-pence, and so on till it become an hundred pounds. The more there is of it, the more it produces every turning, so that the profits rise quicker and quicker, he that kills a breeding sow, destroy all her offspring to the thousandth generation. He that murders a crown, destroys all that it might have produced, even scores of pounds.

We spend a lot of times focusing on actual stock prices rather than what the underlying security provides. We fail to see the value in ownership In his one article regarding how dead people have outperformed their living counterparts in a Fidelity study:

Take something like BHP Billiton, one of the jewel companies with focused operations in Australia and South America. This is the premier to own for production of diamonds, oil, copper, zinc, manganese, silver, natural gas, coal, and iron ore. It has delivered 12% annual returns over the past quarter of a century, with a big chunk of those returns coming from the dividend payment.

Yet, over the past year, the price of the stock has come down from the $70s to the $40s. Many people have written about selling the stock. I found that move unwise because it is a classic example of selling low. Even with the price of commodities lower than usual, BHP Billiton is still expected to make $8.9 billion in profits this year. It’s still one of the fifty most profitable companies in the world even right now, and yet, people are getting mad that a cyclical commodities stock is having a cyclical trading pattern.

Instead, people should be taking advantage of the lower share price in the $40s and reinvest the $2.48 annual dividend that gets paid in two installments—you get $1.24 in March, and $1.24 in December. Even if the dividend froze for the next ten years, you would collect $24.80 in cumulative dividend payments from a $45 per share investment (or $43 per share if you are an American investor and choose to purchase the BBL listing.) Even without assuming dividend growth or adding the turbo-charged effect of reinvested dividends, you are still on pace to collect half your initial investment in cash profits from the business alone over the next decade.

Do not forget the stock is not just a thing that generates a one time cash out by speculation. The name of the game is not always buy low and sell high. Constantly buying and selling stocks to make money is sexy, but unsustainable. One bad move and you are holding the bag like me on Twitter. Now imagine owning a stock for many years, or even for a lifetime! Kind of a weird thought in today’s Robinhood world. Each share of a company (if they pay dividends) can generate a sweet check every year (or many times a year). You own part of the company and some companies pay a share of this profit as long as you own the share.

On the subject of holding on to companies forever, he states there is little risk for loss. Right now General Electric is the only original company of the Dow, he explains:

You’ll see people say things like, “Why would anyone buy and hold stocks when General Electric is the only company left in the Dow Jones?” That logic suggests that the other 11 of the original 12 Dow components went bankrupt. It ignores that American Cotton Oil are now Unilever shareholders. It ignores that American Tobacco became Fortune Brands and all the home security and Jim Beam Whiskey spinoffs. It ignores that the Distilling & Cattle Feeding Company was paid a 50% premium when it got bought out by private investors. It ignores that the original Chicago Gas shareholders are now Wisconsin Energy shareholders. It ignores that Laclede Gas may have left the Dow, but it still a profitable utility in Missouri generating 10.5% annual long-term returns with dividends reinvested. It ignores that United States Rubber shareholders became Michelin shareholders. It ignores that National Lead shareholders are now Halliburton shareholders. It ignores that the North American Company now exists as Pacific Gas & Electric stock. It ignores that Tennessee, Coal, and Gas exists today as U.S. Steel stock.

He states that 11 of 12 original Dow companies are still fruitful investments, with only U.S. Leather screwing their investors. The same can be said about the original 500 companies of the S&P 500 which have only a 1.5% chance of bankruptcy like Lehman Brothers or Enron. More intresingly is research done by Wharton finance professor Dr. Jeremy Siegel:

Siegel pointed out that buying the original S&P 500 and holding it forever would give you an extra 1.5% per year over actually owning an S&P 500 index fund that incorporates the new changes because the depressed valuations of companies leaving the S&P 500 provide a value basis for outperformance going forward.

Yes, even the constant rebalancing of the S&P is much for this dude. If you tracked all the jilted members of the S&P 500 ie: If you bought every company that got dumped from the index you would notice on average 82% of these companies continue to outperform the S&P 500! Have these millennial investors consider the possibility of holding on to a company well into their retirement years?  Apparently they treat this partnership as very brief and much like their tinder dating they are off to the next hot new IPO offering.

There is a lot of upside to long term ownership and even ETFs that screen for high Dividend Yield. Form the Schwab OneSource list we have SPDR® S&P 500 High Dividend ETF SPYD at a 4.2% dividend over the last 12 months, WisdomTree U.S. Quality Dividend Growth Fund DGRW at 1.9%, Oppenheimer Ultra Dividend Revenue ETF RDIV at 2.9%, and Schwab U.S. Dividend Equity ETF™ SCHD at 2.81%.

Now like we saw with BHP a drop in share price causing some to panic on their income strategy. We have to look at stock ownership in a different light. He describes this in a wealth management article here where he would tell his client on the a portfolio going from $2.5 to $2.3 million:

 I would give a best effort to make it clear to a client that the funds are being to acquire business ownership. I would provide spreadsheets mailed monthly that would make this apparent. I would segregate the contributions of the holdings, making it clear that the client is a part-owner in every toothpaste that Colgate sells, every Tylenol that Johnson & Johnson sells, every Cherry Coke sold by Coca-Cola, every dash of paprika sold by McCormick, every chocolate bar sold by Hershey, every razor sold by Gillette, every pint of Ben & Jerry’s ice cream which is owned by Unilever, every gallon of gas sold by ExxonMobil, and every loan created by Wells Fargo.

My spreadsheet would break down the earnings and expected dividends from each security, and it would culminate by saying something like: “Your initial $2,500,000 trust was invested into fifty stocks and fifteen bonds, and these business interests of yours generate $138,800 per year. This month, your business interests earned $11,500 in profits. Your account received $6,250 of these profits this month in the form of cash dividends from these business interests, and is on pace to deliver over $75,000 to your trust account this year in the form of expected dividend payments. You will receive a $50,000 distribution at Christmas and the remaining $25,000 will be reinvested so that a $75,000 distribution will only be a few Christmases away.”

We call that problem framing in the business. Upsell the dividends, downplay the $200,000 in unrealized loss. Good luck out there.

-Derp

End of Grandfathered SCRA Waivers on Gold Luxury

The fun is over for everyone (confirmed on reddit)! Looks like people are getting letters from Barclay’s that the $995 annual fee will no longer be waived when the annual fee hits again. Thanks to reader Chris for the update. He writes:

Got the letter in the mail, no grandfather of older cards. We have until April [his month to renew] to spend our points and ditch the card or pay!

I securely messaged customer service since I did not see a letter myself, and I got this response:

Dear [Derp Report]:

Thank you for contacting us regarding your MasterCard® Gold Card™.  We can certainly address your concern regarding the SCRA benefits on your account.

Although we can confirm all other terms of the SCRA benefits currently provided on your account will remain the same, while you remain on active duty; however, the annual fee will proceed to be billed on the next annual fee date of January 31, 2018. We apologize for any inconvenience this may cause.

If you have any other questions or concerns, please reply to this message.

Sincerely,

Luxury Card Cardmember Care

So get on it! Spend your $200 airline bonus for the year, and cash out them points! Good thing USAA has their 2.5% cash back Limitless Card. Also don’t forget that your AmEx Platinum will be metal soon enough! Here is the text:

I got my card in January, so it looks like I got to squeeze almost one more year out of it! Also going to hold out till January to get another $200 travel bonus out of it! Look out for the letter in your mailbox soon!

Also remember to not be a Blue Falcon and bitch about the whole thing to Barclay’s. We all had the feeling that this was going away very soon. Many more cards to churn! Onward and forward!

-Derp

$400 for 2x$250 DD at Capitol One

Please use my Capitol One 360 referral link.

Right now CapitolOne is offering $400 for two deposits of $250 in 60 days. The site says:

You’ll earn an extra $400 when you accept the terms on a 360 Checking Account by March 31, 2017, and receive 2 direct deposits of $250 or more within 60 days of accepting the terms.

However the deal is targeted to Boston residents via email or mailer. The website says:

IF YOU DID NOT RECEIVE AN EMAIL OR MAIL PIECE DIRECTLY FROM CAPITAL ONE 360 WITH THE ABOVE CODE, YOU ARE INELIGIBLE FOR THIS BONUS OFFER.

For the sake of being the datapoint I wanted to see I went ahead and applied. First I went to this site here and started my application. I kept on getting kicked out, especially when I shared my location. I then went to incognito mode and the application went through! I used ref code EXP400 when prompted and entered my Illinois address no problem. The account was opened and funded with direct deposit in 5 mins.

So I will let you know if it works out. I set my MyPay Allotments for $250 which will drop on April 1 and May 1 barely inside the 60 day window. The offer ends 31 March 2017. I might use my Schwab or TD Ameritrade accounts to drop $250 each to see if it triggers the bonus. Not sure if they enforce the bonus language of being targeted, you kids in Boston should not have any problems. Just YMMV, good chance for a bonus denial or a dragged out CSR conversation like ShittyBank would do.

If it works out we would get $400 for a mere $500 deposit for a sweet 80% return!

-Derp

Update: two direct deposits done today 31 Mar 2017

Schwab No Commission ETFs

Thanks to Davey Nelson and his tip regarding using the Schwab OneSource ETFs and taking advantage of the commission free trades. What this means is all 200+ One Source ETFs are free to trade with your brand new Schwab account. Whereas using TD Ameritrade would cost you $6.95 each way! For Schwab buying any ETF or stock would cost you $4.95 fee charged to get in and out of any of these other ETFs. However for the 200+ ETFs on the OneSource list they will waive the commission. This is inline with the Robin Hood model of charging $0.00 per trade for just these special OneSource ETFs.

So the ETF is a mutual fund that trades like a stock. Usually if you want to get in and out of a mutual fund it must be settled after hours and securities have to be sold from the fund to come up with the cash to pay you. This takes forever, by ADHD standards. Plus the outflow fee and management fees are some times high as 5%. ETFs on the other hand do not have these fees to get in and out, usually you just pay the commission, but Schwab has waved that for these 200 ETFs in order to get you to roll your IRA or brokerage account away from TSP or Vanguard.

However there is still a fee to manage the ETF. Most of the ETFs on the 200+ OneSource list are less than 1% some as low as TSP levels of 0.03%. You can get in and out of them as many times as you want for free unlike TSP which is limited to 2 moves per month. With funds like SCHZ for F Fund, SCHX for C Fund, SCHA and SCHM for S Fund, SCHP for G Fund, and SCHF for I Fund for around 0.03% to 0.05% you can almost get as good as TSP minus the Match with BRS. I made an excel list of OneSource funds for the sake of searching.

Since were all stuck in with at least $1,000 in our account for a year for the $100 bonus, we might as well invest it into something. Here is what I picked based on trying to emulate the Meb Faber GAA minus TSP fund. I avoided asset classes I am already heavy in, and that I have my Roth IRA and TSP invested in. I excluded the G fund by eliminating all treasury product ETFs. I eliminated all the C and S fund ETFs that dealt with any American equity. I then avoided good safe bonds (F Fund) as well as large cap International companies of developed economies (I Fund). This is what I came up with to put my $15k into:

Position Quantity Price Per Total
Cash 16 $1.00 $16.00
SGOL

13

$119.46 $1,552.98
PCY 200 $28.79 $5,758.00
SCHE 200 $24.20 $4,840.00
PUTW 100 $28.33 $2,833.00
$14,999.98

By no means you should invest in these in particular, because with all the elimination I still have many to choose from. I aimed for low fee ones and eliminated gimmicky ones like Direxion iBillionaire Index ETF (IBLN) which copies the strategy of Billionaire Fund Managers. There is also a total bullshit low carbon (LOWC) ETF that makes you feel good inside to “own” companies that hug the earth, but keep in mind you don’t own the stock, the fund does. Also the company doesn’t really get any of your money, stock ownership isn’t giving money, it’s buying ownership. You are just speculating, holding onto these shares to sell to some other sucker in the future. The companies don’t see a dime of it, this ETF is classic virtue signaling here. Plus it’s all Apple, Microsoft, Johnson and Johnson and Amazon, which you already own a shit ton of. Don’t be a sucker to fall for flashy repackaging of the S&P 500 for 10 times the price!

I am just trying something different here, and these ETFs I picked seemed very unique. You can look up any ticker using the old MCCS Library MorningStar Trick. Here is my random justification of how I built my Schwab churn:

SGOL that holds on to physical gold in a Swiss Vault. A basket is 50,000 shares of SGOL representing 5,000 troy ounces of gold in this vault. I guess if you bought 50,000 shares of the ETF you can redeem a single basket of gold which is 5,000 ounces (342.85 lbs) of physical gold. My tiny little purchase of 13 shares represents 1.3 ounces of physical gold currently worth $1597.70 in spot.

PCY is lending out money to developing foreign governments like Cambria’s SOVB. These countries have not so great credit so they pay a little more for the loan. Right now there is about 5% yield on the money invested in this ETF which is outpacing SOVB at 4%. I wanted to expand this position as domestic debt is paying less than 1%. This “helps” more people than the LOWC ETF bullshit mentioned above.

SCHE is money in large and mid cap companies of 21 emerging markets, but not South Korea because they are just too fancy. This is the completion index for that I Fund in TSP does not touch. By market cap the C,S,I fund and this SCHE ETF should account for a good chunk of all the money trading in the world.

PUTW is a very interesting Options Writing ETF. Just like how those folks at Allstate take your premiums every month to buy you a new house if it burns down. You only get that peace of mind by paying the premium every month. This ETF just sits on money in treasury securities and writes put contracts on the S&P 500. The puts come at a premium and allow someone the option of selling a security at the current price, but one month in the future. For example if your share of SPY goes from $240 to $120 in a month. You don’t flip out because you bought the Put from this ETF for $1.27 a share which will promise to buy that share from you for the $240 strike price. People or funds buy these puts to hedge against dips in the S&P 500.

On the flip side your SPY goes from $240 to $300, you sure as hell are not going to use the option to sell SPY for $240. Your contract expires unused and the ETF gets $1.27 a share jus to have taken that risk for a month. Genius!

As long as the market doesn’t go down, and these people don’t exercise their option, and the fund keeps the premiums and the ETF goes up in value. The money that sits there is then used to cover the losses if the option is ever exercised. Since there has been unprecedented movement upwards in the market, the fund has been steadily growing as premiums are collected but no option has been exercised. Hoping this stays the same for at least a year.

Cash $12,275
Bonus $200
202,000 MR $2,525
Total $15,000

I will check in from time to time to show how the portfolio is going. I put $12,275 of my own money in and then $2,725 came in as 202,000 MR points and bonus cash. Please fee free to share your own strategies. For the faint of heart and those who only put in $1,000 for the $100 bonus you have some good TIPS products with guarantied inflation protected returns (SCHP Schwab U.S. TIPS ETF). Going back to my missing funds post, I made a chart of my theoretical funds:

Theoretic Fund OneSource ETF Description
M Fund WMCR USA Mini and Micro cap
W Fund HAO, EDOG, EWX International Mid to Small cap companies of developing economies
IG Fund PCY, BWX Any government debt that is not USA, preferably for a country that needs it
J Fund HYS Junky junky bonds of risky BB rated and below company debt
Au Fund SIVR, SGOL Commodities
H Fund SCHH REITs
MLP Fund ZMLP Master Limited Partnerships
T Fund SCHP TIPS: Treasury Inflation Protected Securities
WSB Fund USCI YOLO

Good Luck!

-Derp