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Eddie Herring

 
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  • Dividend Growth Investing And Beating The S&P 500 [View article]
    Retail

    "As an analogy, I never get on the bathroom scales. It is too depressing, but who cares? I tell myself and everyone who will listen, that "I don't care what the scales say, because what is important to me is whether I FEEL healthy. And I do. And it is ME that decides what is important to me - and you cannot tell me different."
    Of course at the back of my brain, I know full well that diabetes/heart disease/etc will not be held at bay by my 'feeling good'. But I'm not admitting that."

    And of course when you go to the doctor for your annual physical/checkup (portfolio evaluation) does the doctor say "well, let's compare your results to the rest of the population" or does the doctor say "well, let's compare your results to the criteria established for your specific age, weight, body mass, genetic makeup, ancestry?
    Aug 7, 2013. 12:58 PM | 4 Likes Like |Link to Comment
  • The 7 Habits Of Highly Effective Dividend Growth Investors [View article]
    " I think we might do OK..."

    I think you might too. Those are awesome scores.
    Aug 7, 2013. 12:07 PM | 1 Like Like |Link to Comment
  • The 7 Habits Of Highly Effective Dividend Growth Investors [View article]
    razor

    Based on your description I'm not sure you can beat her. Electrician, plumber, floor installer (carpenter), writer, teacher, and genius on top of that. While you think you might can beat her by making fewer mistakes, your bigger mistake may be in trying to beat her. :-)

    Eddie
    Aug 7, 2013. 11:44 AM | 7 Likes Like |Link to Comment
  • Dividend Growth Investing And Beating The S&P 500 [View article]
    Dave

    Enjoyed the article. As you probably already know from my articles and comments I tend to use analogies and metaphors a lot. So here's mine for how I look at comparing my results to another benchmark like the S&P.

    Two guys are running in a race, say a 10K. They do it every year. One guy each year compares his results to the average of all the participants in the race. He is concerned with matching or beating what everyone else does. Even if he runs different courses he still compares his results to the crowd. He always wants to finish ahead of or no worse than the middle of the pack, never behind it. If he finishes behind the middle of the pack he wonders if he should not be running. Perhaps he should do something else for exercise (allow someone else to handle his investing).

    The other guy (me) compares his results to his previous race time so he is only comparing to his own personal results (income). He isn't concerned with where he finishes compared to everyone else. He is concerned only with getting better each year. No matter where he finishes, he looks at how well he did last year. If it is a different course (different company) he compares his time to his previous time for that course. If he did better, he continues to train as he did. If he did worse, he analyzes his training (investments) to see where he may have faltered. But he keeps his focus on improving his own race time results (dividend income growth) each year.

    That may be a little too simple for some but it works for me. But then again, I'm perfectly fine with things being simple.

    Eddie
    Aug 7, 2013. 11:31 AM | 10 Likes Like |Link to Comment
  • Buckets, Cisterns, Asset Allocation, And Retirement [View article]
    Dave

    Nicely done. As they say, a picture is worth a thousand words. Allowing oneself to form mental images is one of the reasons I like pictures, analogies, metaphors and so forth so much.

    "[N]ever touching principal might lead a retiree to underspend, forsaking quality-of-life considerations and leaving more to heirs than would be optimal."

    This statement is one of the things that irritates me about some advisers. What is "optimal" to leave to heirs is up to the individual leaving the money, not the adviser. And never touching principal is also up to the person owning the principal, along with the quality of life. The quality of life is often determined by one's own values and desires and if their basic needs are being met, they may be totally content. .

    Eddie
    Aug 7, 2013. 10:31 AM | 7 Likes Like |Link to Comment
  • The 7 Habits Of Highly Effective Dividend Growth Investors [View article]
    "Au contraire - my wife is the best "investment" I ever made. The dividends just keep coming! :-) "

    Robert & Scott

    I can echo that. And after 35 years the dividends are still growing...

    Eddie
    Aug 6, 2013. 07:08 PM | 1 Like Like |Link to Comment
  • It's Time To Play Ball (Part 2): Building A Winning Dividend Growth Roster [View article]
    Scott & Chowder

    I didn't mean for my response to be of a political nature either and I tried to focus only on the price effect on me personally but obviously I wasn't able to completely do that. Sorry about that.

    Eddie
    Aug 5, 2013. 03:22 PM | Likes Like |Link to Comment
  • Social Security And Dividend Growth Make Up A Complete Retirement Package [View article]
    DF & DVK

    Well said by both of you.

    Eddie
    Aug 5, 2013. 02:34 PM | 2 Likes Like |Link to Comment
  • It's Time To Play Ball (Part 2): Building A Winning Dividend Growth Roster [View article]
    "Where have you seen health insurance rates double?"

    Scott - I'll take a swing at it. My insurance is through Blue Cross. Actually, it's fully funded (paid) by the company from which I retired and Blue Cross just administers it but all that is behind the scenes and everything I get is from Blue Cross, with the exception of open enrollment info from my company, which is every year in Oct/Nov timeframe. In Dec 2009 I was on an 80/20 PPO plan with a $500 deductible. So in essence once I met the deductible the insurance paid 80% and I paid 20%.

    Obamacare passed and was signed into law in March 2010. In the Oct 2010 open enrollment period I was notified that the 80/20 PPO plan monthly premium would be increasing. The monthly premium increase amounted to an 82% increase. As a retiree that was tough to stomach so I decided to switch.

    Effective Dec 2010 I switched to a high deductible plan, called a consumer directed health plan or CDHP that required setting up an HSA. The HSA or health savings account allowed me to make contributions (subject to limits) to it throughout the year that were tax deductible. The deductible is $2,400 but it dropped my premiums back down to less than what they were with the 80/20 PPO. Since switching to the CDHP my premiums have risen a total of 55%.

    If I had kept the 80/20 PPO the total monthly premium from what I was paying in November 2010 would be 111% higher.

    The only good thing I can see from Obamacare is that it forced me to switch my insurance plan to one where I take more responsibility for monitoring it. But all this rhetoric I see and hear that it was going to make insurance cheaper is just that, rhetoric. Even supporters in Congress of the bill are now saying its going to be a train wreck.

    I expect insurance rates to take another significant jump again next year. Heck, it hasn't even gone fully into effect and it's already caused my rates to shoot up. I can only imagine what it will do at full speed.

    As a disclaimer, and to be perfectly honest, I will admit to a bias. I don't trust Congress. Period! I've learned through experience not to take anything they say at face value. I also resent them passing laws requiring the citizens to do things that they exempt themselves and their staffs from. There were members of Congress that tried to require not only the members of Congress but their staffs to submit to the Obamacare requirements but it was defeated. It's good enough for us but not good enough for them. That's the epitome of hypocrisy in my opinion.

    I've also seen changes at my doctor's office since the passing of Obamacare and other so called improvements to the healthcare system. Since I have a number of physical ailments of a recurrent nature, I go to my doctor fairly regularly. Now I see my doctor required to spend time inputting information into a computer as opposed to recording it into a dictaphone and it being later transcribed into my file. I asked him an obvious question as to what it had done to his productivity and as expected he said it had slowed it down tremendously. At some point in the future I know that will impact rates.

    Didn't mean for this to turn into a rant on Obamacare so I apologize for that. But for me personally, in my opinion I think it has been and will continue to be a total screwup.

    Eddie
    Aug 5, 2013. 02:14 PM | 7 Likes Like |Link to Comment
  • The 7 Habits Of Highly Effective Dividend Growth Investors [View article]
    as10675

    Excellent suggestions. The more we can save when young the more we can enjoy it as we age. There's an old investment classic titled "The Richest Man In Babylon" published in the early 1900's that stresses many of the same principles (pay yourself first, put your savings to work, etc.) you repeat here. I've seen it on the web in ebook form for anywhere from $0.99 to $3.99 and I believe I've even seen it for free pdf download.

    Eddie
    Aug 4, 2013. 06:14 PM | 1 Like Like |Link to Comment
  • The 7 Habits Of Highly Effective Dividend Growth Investors [View article]
    Jerry

    Thanks. Odd how we often miss the many things in life that are connected to each other. When we start making those connections it can save us a good bit of effort in "re-learning" life lessons. I'm glad you enjoyed the article.

    Eddie
    Aug 4, 2013. 03:18 PM | Likes Like |Link to Comment
  • Social Security And Dividend Growth Make Up A Complete Retirement Package [View article]
    Dave

    Good article. What jumps out at me in the table is that very nice effect caused by the compounding of the reinvested dividends and resultant returns. And while it might seem like it to someone just starting out, 20 years is not that long in the overall scheme of things.

    Eddie
    Aug 3, 2013. 09:42 PM | 3 Likes Like |Link to Comment
  • Social Security And Dividend Growth Make Up A Complete Retirement Package [View article]
    "The problem with allowing people invest some of their payroll taxes in stocks"

    It might also take away the power of certain (all?) elected representatives over people that they want to maintain control of... can't have that.
    Aug 3, 2013. 09:25 PM | 5 Likes Like |Link to Comment
  • The 7 Habits Of Highly Effective Dividend Growth Investors [View article]
    CDGI

    I'm glad you enjoyed it. Thanks.

    Eddie
    Aug 3, 2013. 08:44 PM | Likes Like |Link to Comment
  • The 7 Habits Of Highly Effective Dividend Growth Investors [View article]
    Smarty

    I agree. I like to say that "risk is personal."

    Eddie
    Aug 3, 2013. 08:43 PM | 1 Like Like |Link to Comment
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