Comments on: Changing My Investment Strategy http://tightfistedmiser.com/2008/11/10/changing-my-investment-strategy/ Extreme Frugality - How to Live Well on Very Little Sat, 31 Jul 2010 21:57:05 -0500 hourly 1 http://wordpress.org/?v=3.0.1 By: Andy Hough http://tightfistedmiser.com/2008/11/10/changing-my-investment-strategy/comment-page-1/#comment-23767 Andy Hough Wed, 24 Dec 2008 17:53:44 +0000 http://tightfistedmiser.com/?p=653#comment-23767 moom- The 72t plans would work but since I won't have a large balance in there my payments would be pretty small. Being able to take out the contributions would allow me to take out a lot of money though. So far my contributions are much more than the balance of my IRA. I might start contributing to my IRA again but right now I don't feel that I would benefit much from it. moom- The 72t plans would work but since I won’t have a large balance in there my payments would be pretty small. Being able to take out the contributions would allow me to take out a lot of money though. So far my contributions are much more than the balance of my IRA.

I might start contributing to my IRA again but right now I don’t feel that I would benefit much from it.

]]> By: moom http://tightfistedmiser.com/2008/11/10/changing-my-investment-strategy/comment-page-1/#comment-23703 moom Tue, 23 Dec 2008 13:58:50 +0000 http://tightfistedmiser.com/?p=653#comment-23703 Well there are 72(t) plans that can allow early access penalty free. Also you can take the contributions out of a Roth IRA with no penalty or tax. Well there are 72(t) plans that can allow early access penalty free. Also you can take the contributions out of a Roth IRA with no penalty or tax.

]]> By: Dividend Growth Investor http://tightfistedmiser.com/2008/11/10/changing-my-investment-strategy/comment-page-1/#comment-21975 Dividend Growth Investor Wed, 12 Nov 2008 15:47:36 +0000 http://tightfistedmiser.com/?p=653#comment-21975 TFM, The beauty of dividend aristocrats is that they are paying market yields right now. However with their dividend growth your yield on cost is most likely to reach double digits in a decade or so.. JNJ is always cited as a "perfect" dividend growth stock having increased its dividends by 10-15%/annualy for decades. Another thing that's important is diversification. I wouldn't have less than 30 stocks. If you were a holder of BAC which cut its dividends by 50% you would have only lost 1.5% of your income. You should also consider having a 25% allocation to fixed income in retirement. However since most people have a large emergency fund their fixed income portfolio allocation could be lower. I am in the process of building my dividend portfolio, which could take a while since I doubt I could live on $1000/month. TFM,

The beauty of dividend aristocrats is that they are paying market yields right now. However with their dividend growth your yield on cost is most likely to reach double digits in a decade or so..
JNJ is always cited as a “perfect” dividend growth stock having increased its dividends by 10-15%/annualy for decades.
Another thing that’s important is diversification. I wouldn’t have less than 30 stocks. If you were a holder of BAC which cut its dividends by 50% you would have only lost 1.5% of your income.

You should also consider having a 25% allocation to fixed income in retirement. However since most people have a large emergency fund their fixed income portfolio allocation could be lower.

I am in the process of building my dividend portfolio, which could take a while since I doubt I could live on $1000/month.

]]> By: Tight Fisted Miser http://tightfistedmiser.com/2008/11/10/changing-my-investment-strategy/comment-page-1/#comment-21948 Tight Fisted Miser Tue, 11 Nov 2008 22:17:53 +0000 http://tightfistedmiser.com/?p=653#comment-21948 I initially wanted to concentrate on Dividend Aristocrats but they weren't paying as high a yield as I wanted. GE is the only Aristocrat I've purchased so far. If they get some government money they should continue paying their dividends. I think a couple of the other stocks might be dividend achievers. I have a shipping stock that is paying the very high dividend. I know shipping is down but it looks like they have plenty of cash to pay their dividend. I initially wanted to concentrate on Dividend Aristocrats but they weren’t paying as high a yield as I wanted. GE is the only Aristocrat I’ve purchased so far. If they get some government money they should continue paying their dividends. I think a couple of the other stocks might be dividend achievers. I have a shipping stock that is paying the very high dividend. I know shipping is down but it looks like they have plenty of cash to pay their dividend.

]]> By: Dividend Growth Investor http://tightfistedmiser.com/2008/11/10/changing-my-investment-strategy/comment-page-1/#comment-21941 Dividend Growth Investor Tue, 11 Nov 2008 18:25:49 +0000 http://tightfistedmiser.com/?p=653#comment-21941 I am always interested in learning about dividend stocks. I would generally caution you against picking up stocks with too high yields especially if those have high payouts. A recent reminder for me was ACAS yesterday, which suspended their high dividends for 2008 and possibly 09..:-( I am always interested in learning about dividend stocks. I would generally caution you against picking up stocks with too high yields especially if those have high payouts.

A recent reminder for me was ACAS yesterday, which suspended their high dividends for 2008 and possibly 09..:-(

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