Q&A: They Made It Up

Q:

Can you tell me little bit about IRM72? I just read about it and what I don't understand is the price of dividend if you purchase as IRM72? Can you get a higher dividend on stock purchased directly from the company? What are the perks?

A:

A slick promoter came up with the catchy, but totally invented, IRM(72) account moniker to help offer you a newsletter on how to invest in direct stock purchase plans through the few firms that provide them. IRM stands for "Individual Retirement Multiplier" alluding to the "magical" power of compounding and the (72) references the "rule of 72" (dividing investment return by 72 gives you the approximate number of years it takes a compounded investment to double). There is no "official" IRM(72) account (even though the parenthesis make it look convincing).

To answer your specific questions: A stock's dividend is the same no matter how you purchase it. The only perk is the possibility of getting the the stock without a commission (with some plans). 

I suggest forgetting about this contrived concept. Owning individual stocks is too dangerous. If you want to own stocks, get the massively diversified Vanguard Total World Stock Index Fund (you'll own every company he would have suggested) and save yourself from the "promotion materials and offers" that they send with their free newsletter subscription.