I am twenty-something investor who has a great interest in Dividend Growth Investing. Currently I am in the process of rebalancing my portfolio to more of a DGI approach. I began investing (admittingly foolish investing) when I was 20 and have learned so much in a short span of five years. I hope to bring a fresh take to the DGI contributor scene in the future as most contributors steer their work toward the baby boom and Gen X SA readers. I enjoy reading articles written by DVK, Chuck Carnevale, RAS, RS, Bob Wells and all the others I am following. I truly appreciate the articles written by the younger SA contributors such as Tim McAleenan, Eli Inkrot and DGM.
I follow earnings reports and market news to help identify opportunities in the market.
Follow my portfolio updates and sign up for e-mail updates and links to my SA articles on my Blog at http://DividendAccumulator.com
I have a young entrepreneurial spirit and am a die hard investor always on the lookout for those stocks that have dashing fundamentals, but also aren't afraid to try new things. I have many years before retirement, and I have some volatility to spare.
I'm a 31 year old Civil Engineer, working in the public sector in the railroad industry. I am "living the american dream", I own a house, I have a 2-year old daughter, a baby boy on the way, a crazy beagle, and a wife who rolls her eyes every time I think I say something funny. I'm Professional Engineer and I'm not an investment professional, advisor, or know-it-all. I consult my dad who raised me to be frugal, and I bounce my ideas and analysis off of him and a few of my college buddies.
I have a few goals for my life: 1.) Be a great dad, 2.) Be able to provide for my family financially 3.) Teach my kids the value of saving their money 4.) Help my kids pay for higher education 5.) To have a stable and worry-free retirement.
In the last year I made major headway on #1 by switching jobs and joining the public sector and being much closer to home. As a result, the other goals have started to unfold nicely.
Switching jobs left a sizeable 401k that I needed to rollover. I'm rolling it over from a target-year retirement account (where the fees were going to increase because I was no longer with my previous employer) to a Traditional IRA account using DGI. I plan on using Seeking Alpha to track my progress, and also compare it to my previous account. I look forward to bouncing my ideas off of a larger sounding board and also sharing my progress with some of the other younger investors.
I am a 19 year old college student with an interest in Small Cap Bio-Pharmaceutical companies, as well as Retirement Investment ideas for young investors. I find that young investors should seek to take advantage of our youth in order to create a successful investment portfolio capable of providing sustainable income in the long-run.
Baby Boomers with modest nest egg who got tired of watching our low yielding mutual funds lose money and decided to take over managing our portfolio in 2009. In 2013, after reading a number of investing books and countless articles on SA, we decided DGI gave us to best chance at meeting our goals with reasonable risk. Goals: retire by 2022 (2023 at latest) with a minimum of 12k/yr (1k/mo) in dividends to supplement pension and SS. Challenges: Modest initial capital and income (under 45k) limits Roth contributions, relatively new to investing on my own (late 2009), new to DGI (2013). Limited time and money may prevent me from reaching much past my minimum goals. 12k/yr may not be enough to make a significant enough difference depending on medical insurance costs. Strategy: DGI, take divs in cash and invest in best possible opportunity, contribute as much as possible to our Roths until retirement. Minimum IY of 3%. Try to apply Chowder rule to all new investments. I occasionally employ cash secured puts or covered calls when entering or exiting a position. Progress: Began transitioning to DGI mid-2013. Portfolio yields about 7.5k/yr as of early 2015. I have a much better grasp of what and how I can reach my goals. I had reached the 12k/yr goal in 2014, but only by using a high yielding CEF with a large portion of the portfolio. That CEF announced a 50% cut to distribution and the position was closed with a nice gain. I have since redeployed those funds into DG stocks albeit at a lower yield. Progress to 1k/mo goal: 72%
Recommendations Nov 2011:
Bond prices will tank as inflation will likely rise over the next 5 years, I believe stocks in a 5-10 year period will break upwards out of this lost decade and provide substantial returns above inflation. This is largely due to fear in the market reducing the value of stocks to a PE of ~11-12 which I think more than bakes in any contagion from a potential Europe recession, and also due to a lack of alternate investment returns since bond and CD returns are so low.
I am in my mid 20s in the accumulation phase towards early retirement and working for myself and making a bigger difference in the community in the future.
1) Enjoy life without spending large amounts of money
I try to enjoy aspects of life that don't cost (much) money. For example, I enjoy the outdoors and especially training for endurance events. My main focus is running, including 5 marathons, but I hope to adventure into cycling and triathlons in the near future.
2) Reduce monthly expenses - use creative living arrangements
I live my life to save as much money as possible by reducing expenses. I am close to an extreme saver, and I modify my lifestyle to live with roommates to reduce housing expense.
3) Invest as much as possible, make your money work for you.
I actually enjoy buying stocks, even if I lose money in the near term, I only choose companies I will whether any storms with, typically based upon the protection provided by the companies balance sheet and assets and their expected earnings multiple, and I typically pick out of favor companies or investment ETF's or sectors to increase my long term capital gains. I also use the covered call strategy (sell to put to enter a position, and sell to call once a position is secured)
4) Save to create freedom in life and in your future.
What feels better than knowing you could retire at any time, and instead choose what you enjoy in life and what business opportunities you want to pursue.
VIG - US Large Cap
VO - US Mid Cap
IWM - US Small Cap
IJS - US Small Value
QQQ - Tech
EWG - Germany
EFA - MSCI EAFE
VGK - MSCI Europe
VPL - Pacific
VWO - MSCI Emerging Markets
DEM - Emerging Markets Dividend
XLE - Energy
XLV - Healthcare
MOO - Agriculture
XLB - Materials
TLT - 20 yr Treasuries bonds
TIP - TIPS bonds
LQD - Investment grade Corp. bonds
JNK or HYG - High Yield Corp. bonds
BND - ~Total bond market
Opportunity Stocks based on valuation: