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J.D. Welch

 
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  • My Mad Method: 2013 EOY Review [View article]
    Thanks very much, Hardog! Best of luck to you, too...
    Jan 24 03:40 PM | Likes Like |Link to Comment
  • My Mad Method: 2013 EOY Review [View article]
    Thanks, teeth26, and I know.

    First things first, however. I first have to get to the point where I'm able to regularly and reliably contribute as much (preferably the max) to both mine and my wife's traditional IRAs. Once I've reached that goal in terms of available tax flow, the next goal is to open a Roth for one or both of us, and then to open a taxable account so that I can get back into MLPs and such. Unfortunately, at the moment just fully funding our traditional IRAs is a bit of a challenge, but hopefully that will change, eventually and hopefully soon.

    Some people prefer Roth IRAs to traditional IRAs, and vice versa. I already had a traditional IRA from the time before Roth IRAs came into existence, so I've been concentrating on it. However, the time may soon be approaching where it would be better to sink whatever contributions I can scrounge up into a Roth to start saving in a different but similar manner; that is, a different kind of "tax advantage". Will have to take that into consideration...

    Thanks again for your comment!
    Jan 24 03:39 PM | Likes Like |Link to Comment
  • My Mad Method: 2013 EOY Review [View article]
    Hi, folks.

    The debate as to the validity or usefulness of YOC has been raging for quite some time here on SA, as Larry implied. Personally, I do track YOC, but I don't usually report it in my articles. I find it to be a very useful tool to help me see the value that my investments are returning in the form of dividends vis-à-vis my initial cost(s), regardless of what the current Yield is.

    For example, at the end of 2013 the average Yield of my portfolio was 5.72%, while the average YOC was 6.13%. This makes me feel good, but then again, the market (and my holdings) are generally up from the time that I bought into my existing positions, so it also makes sense. Likewise, since the market has dropped a bit since 12/31/2013, my current average yield of my portfolio is now 5.58% (not taking into account todays big drop in the market), while my average YOC is 5.98%. Again, nice to know, but not something I can bank on...

    However, on an individual stock basis, the YOC may give me pause as to my decision of whether to harvest some profits from a stock. It's current Yield might be below my 3% threshold, but its YOC might be much higher. This is an indication that my money (my initial investment) is generating more for me than its current value is. But most people are just interested in Current Yield, and there have been some raging debates in the Comments sections of some articles about the usefulness of YOC. I think the two sides are fairly well polarized on the subject, with neither really winning any converts over the debate, so I just don't (often) go into it.

    I do, to your point, badour, keep track of all of the dividends that each position has earned while I've held it. I use this to offset any losses in the value of the position and have a little indicator on my Dashboard that tells me something I like to know, that being, if a stock is currently "down" from my cost, but the total dividends I've collected from that stock is greater than the "loss" in value of the stock, then I display a '^' and have formatted that column to turn that cell green; likewise, if the stock's value is below my cost basis and the dividends I have collected have not yet offset that difference, then I display a 'v' and the formatting of the column turns that cell red. If the stock is simply up from my cost basis, then the cell in that column for that stock is empty.

    I think YOC is interesting, in that it helps tell me how well a stock has performed since I bought it, but that's just me... YMMV...
    Jan 24 03:32 PM | 2 Likes Like |Link to Comment
  • My Mad Method: What Next To Buy, Taking Profits, And Why? - Part 3 [View article]
    Hey, rokgpsman.

    You're right, the VOD dividend isn't due to be paid until 2/5. I was looking at my "Dividend Accruals" part of my broker's statement, and it showed the fee that ~will~ be taken out. D'oh! Thanks for clarifying that! :-D
    Jan 24 02:33 PM | Likes Like |Link to Comment
  • My Mad Method: 2013 EOY Review [View article]
    I had LNCO in my wife's IRA for a while, but things did not go well for the company for a while (rumors of funny bookkeeping), and I got cold feet and jumped out after taking a bit of a hit. That contributed to my wife's IRA's relatively poor performance last year. It's not reflected in the article, because I bought it, watched it tumble, and got out of it during the course of the year, so it wasn't there at the beginning or end of the year, and the article was getting long as it was and I didn't want to test the SA Editors' patience by discussing all the (small number of) intra-year activities. (In fact, I think LNCO is the only such case across both our IRAs, now that I think about it.). I put some of the money from the sale of the MLPs in my wife's IRA into a LNCO position, but things didn't turn out as planned. There were greener, safer pastures to venture into, so I dumped LNCO and started sleeping better at night. I could've been wrong, but I have no regrets, about any of my decisions on what I sold or bought; the only regrets I have are for the "ones that got away", stocks like CBRL that I added to my watch list when they were priced much lower, then shot up and stayed up there. But at the time I didn't have the cash to buy that and whatever it was that I bought instead, so, yeah, that one got away, and I wish I coulda, shoulda, woulda, but, oh, well. I still SWAN. LOL.
    Jan 24 02:24 AM | Likes Like |Link to Comment
  • My Mad Method: 2013 EOY Review [View article]
    This is actually a long running debate between those who think it's OK to keep MLPs in an IRA, and those of us who feel there is a high risk of a potential tax hit that would come at a time when we don't have a regular paycheck coming in, and that potential tax hit would take away a big chunk of capital from the rest of our limited resources. Note the key words "potential", "could" and "risk". It's a risk I decided I couldn't sleep well at night with, so I cut my lovely MLPs and from my IRA and set my sights on a time in the not too distant future when I should be able to fund a standard, taxable account along with our IRAs, at which point MLPs will be one of the first things I start that account with.

    Your mileage may vary, but it's a risk that was keeping me up at night, and not one I wanted to take a chance on. Do I miss the income from the MLPs? Sure, but I've managed to grow my income stream (dividends) anyway by finding alternatives that I know are "safe" in an IRA, like BDCs and companies like LMT, GD, PM and MO.

    Thanks for the feedback, and best of luck with your investing! :-)
    Jan 24 02:11 AM | 2 Likes Like |Link to Comment
  • My Mad Method: 2013 EOY Review [View article]
    Thanks very much! Thanks for taking the time to read the article...
    Jan 24 02:01 AM | Likes Like |Link to Comment
  • My Mad Method: 2013 EOY Review [View article]
    Thank you very much!
    Jan 24 02:01 AM | Likes Like |Link to Comment
  • My Mad Method: 2013 EOY Review [View article]
    I'm not withdrawing anything from the IRA, Larry, but it's still considered "income" in terms of dividends coming into the account. When I retire I will eventually have to draw down from the IRA at some point (75? Can't remember the exact age), if I don't transfer any or all of it to a taxable account once I reach the age I'm allowed to do that before then. So it's not "income" that I'm living off of yet, I've got a good 15 years to go before I can retire and get the max Social Security benefits, plus I love my job and my company and that keeps me busy & occupied, so I'll probably work as long as I'm able...

    Point being, I'm not withdrawing from the IRA yet... Everything gets re-invested back into the IRA, either into existing positions or to start a new one...
    Jan 24 02:00 AM | Likes Like |Link to Comment
  • My Mad Method: 2013 EOY Review [View article]
    At age 50+ you can (currently) contribute up to $6,500 to your IRA. I turned 52 a few weeks ago.

    Also, remember that I sold quite a few positions during the year, which got redistributed around into the new purchases, plus there was income from dividends that had to get re-invested somewhere. So there was a bunch of cash moving around, but not very much being idle for very long.

    Also, before someone asks, I use Interactive Brokers, LLC as for my IRA, so my typical commission is just $1.00. (We have my wife's IRA at Well Fargo, where she gets 100 free transactions per year, which is plenty for what I need to (and can do) there.)
    Jan 24 01:54 AM | Likes Like |Link to Comment
  • My Mad Method: What Next To Buy, Taking Profits, And Why? - Part 3 [View article]
    Thanks, rok!

    By way of update, I just received a dividend from Vodafone (VOD), a UK-based company, and they took out $0.65 as a "fee". So I would imagine that something similar will be applied to TGH when I get dividends from them; either that, or nothing will be taken out. Remains to be seen. I'm due to get a dividend from SDRL on the 28th, so we'll see whether any fees are taken out from that then (I can't recall from last time, and am too busy (read: "lazy") to look it up in a past report; LOL!).
    Jan 23 04:08 PM | Likes Like |Link to Comment
  • My Mad Method: What Next To Buy, Taking Profits, And Why? - Part 3 [View article]
    Thanks, kolpin! Nice to hear from you again, too.

    Actually I'm in the process of writing a 2013 EOY Review; just been sidetracked a bit with work deliverables and some family responsibilities, but I should be able to get that banged out and into the SA Editors tomorrow, so look for that soon.

    Spoiler: I had a very good year!

    :-D
    Jan 22 07:20 PM | Likes Like |Link to Comment
  • My Mad Method: What Next To Buy, Taking Profits, And Why? - Part 3 [View article]
    Hi, rokgpsman. Nice to see you again.

    You are correct, they are an offshore company. They are based in Bermuda. SeaDrill (SDRL) is also based there, and I've never known them to tax my dividends, so I'm going to assume that we have a treaty with Bermuda similar to the one with the UK (very close ties there) wherein our dividends don't get taxed.

    That's how it looks to me currently. It looks like TGH's next ex-div date is going to be 2/15, so I'll find out eventually. :-)
    Jan 22 07:18 PM | Likes Like |Link to Comment
  • My Mad Method: What Next To Buy, Taking Profits, And Why? - Part 3 [View article]
    Ah, thanks. Wasn't when I last looked at David's list, but I will admit that I don't have the most recent version. Must've just crossed over into being a Challenger in the last few months. That means it probably (possibly) would've ranked even a little better.

    Thanks again!
    Jan 19 07:17 PM | 1 Like Like |Link to Comment
  • My Mad Method: What Next To Buy, Taking Profits, And Why? - Part 3 [View article]
    It's not for everyone, but when my usual commission, buy or sell, is $1.00 it's not that painful, and this process has allowed me to expand the number of positions in my portfolio, and each time I've done it I've dramatically increased the amount of revenue that the portfolio will generate in the next year vis-à-vis the dividends that I lost by selling those tiny portions...
    Jan 17 02:59 PM | 1 Like Like |Link to Comment
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