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Doug Meeks  

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  • A Dividend Growth Portfolio Is Not Replaced By VIG [View instapost]
    Thanks. I'm still working on correlations it's always a good time to learn stuff.

    Doug
    Mar 5, 2015. 06:57 PM | Likes Like |Link to Comment
  • The Dividend Aristocrats And Higher Interest Rates [View article]
    Great read here. Thanks for taking time to write. I see this the same, some lagging may be in the future for the Aristocrats. I'm discounting dividend growth rates in models going forward, also prioritizing growth related purchases for new cash, also in a slow shift to lower payout ratios where appropriate. I intend to collect higher dividends in all accounts and I will always evaluate that goal, in fact I'm not a fan of price only investing right now, my concern for the market prices is only bearable with increased dividend income. Ready to hold through the cycle, if it changes in this interesting time.

    thanks for sharing your work,

    Doug
    Mar 5, 2015. 09:58 AM | 4 Likes Like |Link to Comment
  • 5 Common Errors Of A Dividend Growth Forecast [View article]
    High,

    I agree, Mr. Hemmerling's work it pretty great. A certain dis-passion is a good way to approach investing.

    Doug
    Mar 4, 2015. 03:58 PM | Likes Like |Link to Comment
  • 5 Common Errors Of A Dividend Growth Forecast [View article]
    Great Read here. Thanks for being a conservative calm voice. Even using solid math market conditions suggest further discounting to models. I'm using 75% of the last five years of dividend growth for an upper boundary, and 50% as a lower boundary. Weighted numbers are very important for dividend growth. Weighted beta is important too when evaluating volatility. It's just not realistic to project above 7% DG rate over a long period of time for a diverse portfolio.

    Great read here. I enjoyed it very much.

    Doug
    Mar 3, 2015. 10:01 AM | 3 Likes Like |Link to Comment
  • You Can Absolutely, Positively, Retire Early... Maybe [View article]
    steve, you want to have both can and tax advantage accounts ( ROTH is king). Two things.

    Later in life if you want to buy an RV or cruise around the world that deduction from an IRA (or like) can increase your taxes, however, if you have cash savings the flexibility rises, you can just take your cash (watch for capital gains), and get your RV.

    Also, dividends are often qualified and often taxed at a lower rate than IRA deductions. Qualified dividends can be taxed at 0% for many people.

    Doug
    Mar 1, 2015. 02:41 PM | Likes Like |Link to Comment
  • You Can Absolutely, Positively, Retire Early... Maybe [View article]
    Texas, the best part is you can use the dividends to do what you said and it's free. Does not have to be a company you own, can be any stock you want to buy with the divs, and it's a free transaction.

    It's a nice feature, I would love to know if another brokerage has that feature, free re-investment is very common, the FRIP is not (yet).

    Doug
    Mar 1, 2015. 02:37 PM | Likes Like |Link to Comment
  • You Can Absolutely, Positively, Retire Early... Maybe [View article]
    Working Hard,

    Private insurance is available, has always been. This is often high deductible, no prescriptions, no well visits, no dental, and no co-pay. Retiring early (with the kids under 5) requires that you capitalize these expenses. This is where being healthy in mind and body make the big difference, not all have that choice.

    My insurance did not count as coverage based on the ADA, so I have enrolled my family in that the last couple of years. Also, travel insurance is very cheap, so spending 3-6 months each year out of the country can drop your insurance substantially.

    At this point I have the Blue Cross, Blue Shield super Gold PPO plan from the Healthcare.gov market place. With zero subsidy the costs $1300 per month for a family of four and I gotta tell ya, it is great insurance and 100% accessible. The capitalized value of that life time expense is something like $390,000 (in a DG Portfolio, yielding 4%).

    I was 40-ish when I retired, it was a close call financially, but I knew I could go back to work anytime and I know many people who did not make it until retirement or made it but were not able to enjoy it. I wanted to spend a year with my kids before the oldest reached school age. I don;t think I can put a value on what that was like.

    We always saved money, and when my career accelerated, we never changed lifestyle, so it was savings and my financial independence that accelerated.

    regards,

    Doug
    Feb 28, 2015. 02:02 PM | 3 Likes Like |Link to Comment
  • You Can Absolutely, Positively, Retire Early... Maybe [View article]
    Ry,

    I suspect it's very average advice at best. I'm like you, thinking it could very well be churn, but it's important to try to impartial. The best thing you can do is not point out a mistake your boss is making in his own personal life, he might not react well to that. And that could hurt your position at work.

    Doug
    Feb 28, 2015. 11:17 AM | 4 Likes Like |Link to Comment
  • You Can Absolutely, Positively, Retire Early... Maybe [View article]
    Ry1982,

    Do not talk with your boss about money. Work hard, do your best. Leave his mistakes to him, and then get his job.

    Advisors churn accounts far to often, but you don't know if that's the case. It could just be standard planned re-balance which is a pretty good idea for MPT strategies.

    Doug
    Feb 28, 2015. 09:57 AM | 5 Likes Like |Link to Comment
  • You Can Absolutely, Positively, Retire Early... Maybe [View article]
    That is a great question. In many cases a mortgage is a good debt. However, a 30 year mortgage begins to be a bad deal, if you look at the total dollars paid out. That's a real way to evaluate. Total dollars paid, not starting, and not the monthly amount, evaluate the end game, make that part of your decision, most people buy far more house than needed, and it leads to an outsized draw down on asset creation.

    However, being debt free mean's no mortgage. That's a lofty goal, but not impossible.

    Doug
    Feb 27, 2015. 08:28 PM | 4 Likes Like |Link to Comment
  • You Can Absolutely, Positively, Retire Early... Maybe [View article]
    texas,

    I love the FRIP at Scottrade, it's pretty great.

    Doug
    Feb 27, 2015. 02:13 PM | Likes Like |Link to Comment
  • You Can Absolutely, Positively, Retire Early... Maybe [View article]
    bill,

    My best wishes to you, I understand the struggle with dementia very well. You can do it, hang in there.

    Doug
    Feb 27, 2015. 02:10 PM | 2 Likes Like |Link to Comment
  • You Can Absolutely, Positively, Retire Early... Maybe [View article]
    Thanks for taking time to write RS. I retired early, took about three years off and then went back to work, ha! The difference was only that now I do what I love doing, and I'm self employed.

    One must work hard and save, a healthy mind and body will help and I have seen many times that the wisdom needed to save and live below your means at a young age signifies excellence in another place....at work. Oddly enough, people can tell when a person is financially mature, it leads to promotion. At the end of my first career I was saving 70% of my salary.

    Great read.

    Doug
    Feb 26, 2015. 08:57 PM | 22 Likes Like |Link to Comment
  • Avoid High Fees From Your Financial Advisor [View instapost]
    That would be up to the advisor. It's true that every signal account is different. An advisor should be able to give you a model or a real time investment plan, you can back test that plan.

    It is also possible to get references in some rare cases, but client privacy rules are pretty firm. It's hard to show numbers, I think about that at times, we also have pretty stiff rules about promising the past and all marketing materials are audited by the authorities.

    Great question!

    Doug
    Feb 26, 2015. 06:53 PM | Likes Like |Link to Comment
  • Main Street boosts dividend again [View news story]
    Buzz, I know MAIN is doing a good job with their work. So are you with your work, which being a top notch BDC Analyst. The special dividends have been great from MAIN, I do plug them in my models at the monthly rate and the big additional payouts add to outperformance, but are not planned on.

    LONG MAIN.
    Feb 25, 2015. 08:49 AM | 2 Likes Like |Link to Comment
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