ShareBuilder investment

I have re-enabled my small monthly dollar-cost averaging investment plan with ShareBuilder and it now invests 100% in Microsoft stock on the second Tuesday of each month, so in theory it purchased a small slug of MSFT for me on Tuesday. I'm sure it did, but I've been too busy to check. The next investment will be on Tuesday, July 11, 2006. ShareBuilder will automatically debit the funds from my checking account the previous evening (Monday), but I haven't seen that debit hit my checking account yet as of Tuesday evening. This is rather convenient and only costs a $4.00 commission.

My Roth 401(k) plan will be investing 100% in Microsoft stock as well. My first contribution may occur on Thursday, but it may take another pay period or two (pay periods are the 15th and last day of the month) before it kicks in. The company matches 50 cents on the dollar up to 6% of my base pay. My employee stock purchase plan (ESPP) starts taking money out of my pay on July 15th and then buys company stock at the end of September at a 10% discount.

Meanwhile, I transferred a big pile of cash into my Sharebuilder account to keep as cash for my rainy-day fund. I'll keep it there until I figure out where I really want to keep my rainy-day fund. I'm still considering Fidelity, but I'll consider other options as well. In fact, I'll probably eventually distribute it in at least three or four different places based partially on convenience and better return (and protection from identity theft). The guiding rule: out of sight, out of mind. If I don't see the cash in my checking account or main savings account or main brokerage account, I'll be less likely to consider it as "available" for other purposes.

-- Jack Krupansky