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  • My KISS Portfolio: 4th Quarter Update And Year End Review [View article]
    Don't forget that there are trading fees involved when you go shopping for income. PTI is essentially just paying those trading fees now so he doesn't have to pay 5 basis points a year plus trading fees later.

    Also, if you're doing some of your investing in a taxable account, buying your future income now might be preferable to buying an ETF now and flipping it into income later because of capital gains taxes. Unrealized capital gains are never taxed.
    Feb 1 12:32 PM | Likes Like |Link to Comment
  • 5 Beat-Up, Solid Dividend Growth Stocks [View article]
    I'm a fan of JNJ at these levels. That position is already a little overweight in my portfolio but I'm planning to buy a little more if it dips below 88.
    Feb 1 12:25 PM | 1 Like Like |Link to Comment
  • 5 Beat-Up, Solid Dividend Growth Stocks [View article]
    Agreed. All 5 of these look quite attractive at today's prices. I upped my stake in KO by 50% at an average cost of about $38 over the course of the last couple of days.

    With today's plunge Chevron (CVX) looks pretty good too.
    Jan 31 09:37 PM | 2 Likes Like |Link to Comment
  • More on Apple: iPhone ASPs jump, cash balance at $159B [View news story]
    >>> If the proxy vote doesn't go through, I'm voting with my feet and selling my entire stake.<<<

    If you're willing to sell it for a low enough price I'll be there to buy it!

    My basis in AAPL is around 430. I wasn't planning on buying any more but I might just have to if it dips much further.

    Random thought. Is there a chance that the guidance was a little weak so they could demolish it next quarter while enhancing the effect of buybacks until then?
    Jan 27 06:37 PM | 3 Likes Like |Link to Comment
  • Dividend Growth Investing, IRAs And Taxable Accounts: 4.5% Extra Returns From Asset Placement [View article]
    No, the tax on the gain is

    .15*38842.71=5826.41

    Another way of seeing (or really, confirming) the tax on the gain is

    44342.71-38516.30 = 5826.41
    Jan 12 11:58 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing, IRAs And Taxable Accounts: 4.5% Extra Returns From Asset Placement [View article]
    Hi Gary,

    44342.71 - 5500 = 38842.71

    is the gain on which you have to pay tax.

    So you end up with, after paying a 15% tax on the gain,

    5500 + .85*38842.71 = 38516.30
    Jan 11 02:06 AM | Likes Like |Link to Comment
  • Building A Portfolio Part 3: Due Diligence [View article]
    Love the infographic under point number 9. Thanks!
    Jan 8 11:24 PM | Likes Like |Link to Comment
  • Dividend Growth Investing, IRAs And Taxable Accounts: 4.5% Extra Returns From Asset Placement [View article]
    The article is primarily written for investors in the accumulation phase. I'd love to hear perspectives on the topic from retired people!
    Jan 8 08:59 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing, IRAs And Taxable Accounts: 4.5% Extra Returns From Asset Placement [View article]
    Gotcha :)
    Jan 8 03:37 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing, IRAs And Taxable Accounts: 4.5% Extra Returns From Asset Placement [View article]
    Because growth can slow, fundamentals can deteriorate and dividends can get cut. I thought I read somewhere that you sold KMB last year?
    Jan 8 03:24 PM | Likes Like |Link to Comment
  • Dividend Growth Investing, IRAs And Taxable Accounts: 4.5% Extra Returns From Asset Placement [View article]
    >>>Are you not interested in any offsets of gains by losses in a taxable<<<

    Generally I don't intend to take losses! :)

    I do try to put speculative plays---anything I expect I might have to take a loss on---in my taxable account, though, just in case.

    >>> or that whatever you take out of the IRA (not ROTH) is taxed at your ordinary level & without qualified dividend treatment?<<<

    I don't have a traditional IRA. Just a Roth. For traditional IRAs, the article is written from the perspective of maximizing the income at retirement, and generally more total dollars gives you access to more after-tax income. However, tax rates on traditional IRA withdrawals is an area that is much more sensitive to individual situations. You could run your expected income tax rates against the dollar values in the detailed example in the article to get a better idea of what would be best for you.

    As far as the example goes, if you're in the 25% income tax bracket it's better to hold the DG stock in the taxable account and the growth stock in the traditional IRA.
    Jan 8 03:24 PM | Likes Like |Link to Comment
  • Dividend Growth Investing, IRAs And Taxable Accounts: 4.5% Extra Returns From Asset Placement [View article]
    Well sure, but how can you plan for unknown changes? One thing I'm sure of is that capital gains will continue to be taxed.

    The conclusions on efficient asset placement still hold for shorter time frames, by the way.
    Jan 8 12:24 AM | 2 Likes Like |Link to Comment
  • Dividend Growth Investing, IRAs And Taxable Accounts: 4.5% Extra Returns From Asset Placement [View article]
    Hi SDS,

    There are a couple of cells in the table where the growth stock and the buy-and-hold-forever stock have the same characteristics, except the growth stock is sold after 20 years while the other is not.

    For comparing two buy-and-hold-forever stocks, I have not done that analysis (see my reply to RAS below).
    Jan 7 04:29 PM | Likes Like |Link to Comment
  • Dividend Growth Investing, IRAs And Taxable Accounts: 4.5% Extra Returns From Asset Placement [View article]
    Hi RAS,

    I'm personally focused on the eventual income moreso than current income, so maximizing account value (after all taxes are paid) amounts to maximizing the eventual income for me.

    I'd be interested in the analysis you suggest too.

    Even pure income investors have to sell things from time to time, don't they? If so, anything that needs to be sold being held in the IRA would generally help keep the income stream up the most. After that, the question of where to place things that you never sell (priority number 5 in the article) is one I have not explored.
    Jan 7 04:27 PM | Likes Like |Link to Comment
  • Dividend Growth Investing, IRAs And Taxable Accounts: 4.5% Extra Returns From Asset Placement [View article]
    All computations in the article assumed a 15% tax on dividends and capital gains. If you'd like me to run another scenario I'd be happy to.

    If you're talking about 15% income-tax-bracket investors, they don't have to pay any taxes on capital gains or dividends, so as long as the tax law doesn't change it doesn't really matter where they put things. Still, it'd probably be best to follow the advice in the article (prioritize stocks for tax-sheltered accounts based on the probability that you will need to sell them eventually) in case the tax law does change.
    Jan 7 03:57 PM | Likes Like |Link to Comment
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