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Jarrod W. Jacinth

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  • How Star Trek Shaped My Retirement Perspective [View article]
    That is one of the best things about a solid company with a growing dividend. When the stock is down you can either add to your position or if you get a dividend payout reinvested, you are able to purchase more shares than if the equity price is up.

    Then more dividends are then compounded on top of that.
    Apr 25 12:23 AM | Likes Like |Link to Comment
  • How Star Trek Shaped My Retirement Perspective [View article]
    The problem with an index fund is that they are made simply to mirror whatever index they are comprised of. With The three stocks I currently have positions in the dividends are expected to increase.

    Wal-Mart has a 25% annualized dividend growth rate since it's inception, that is equivalent to receiving a 25% raise a year.

    A $10,000 position with a 2.5% yield starts off with $250 payout. At say 20% growth we see:
    300
    360
    432
    518

    and so on, after 20 years we get the $10,000 back annually in dividends, if the dividends for the past 20 years are not reinvested and the position is not added to.

    If the dividends are reinvested and position is added to, say the annual May/ June dip; then the returns are exponentially larger.
    Apr 25 12:20 AM | Likes Like |Link to Comment
  • Retirement In A World Without Social Security [View article]
    The dividend growth rate is what this article was originally about in it's first draft. The question of Suvivorship Biased continued to come up so I scrapped the article as it was declined to be published.

    With the parameters of $5000 a year, increases for inflation. With an 8% dividend growth and 8% return on equity I had an almost 4 million dollar portfolio with half a million in dividends a year after 30 years. Assuming the stocks were able to perform as such for 30 years.
    Apr 23 01:02 AM | Likes Like |Link to Comment
  • Retirement In A World Without Social Security [View article]
    PendragonY,

    Not everyone that receives SS benefits has paid into it. Let alone those who are disabled and are drawing out for a lifetime have not equally paid in for the same amount of time.

    But it is not my place to judge. I would rather have this social program in place than look down the barrel of a gun because someone believes they had no other alternative to feed themselves.

    One example, and I know one example is not the rule. I know of a mid-thirty's woman with Bi-polar. Due to her condition she is unable to hold down a job and because of this has paid into Social Security very little, if at all.
    Apr 23 12:50 AM | 1 Like Like |Link to Comment
  • Retirement In A World Without Social Security [View article]
    To me #5 seems to be a Generational Quirk. After WW 2 we saw Corporate America take off then we had the 60's, 70's and so on. It seems that the baby boomer generation laid the foundation for a huge financial epoch. Later generations find comfort in going to college and getting that "safe" job, climbing the corporate ladder and keeping up with Kardashians, literally.

    The idea of building a life for you and your family has completely changed in the last 50 years.
    Apr 23 12:43 AM | Likes Like |Link to Comment
  • Retirement In A World Without Social Security [View article]
    AFAHM,

    I like NLY and Brad is awesome. As you stated, the price action of a REIT is volatile and that is where I would hesitate to reinvest the dividend for the long term. Personally, I would simply take the dividend from a REIT as income and either use it to pay bills or invest in something else with the dividend.

    I looked up OHI it looks like a good play, personally I would have gone with HCP as it has increased dividends for 27 years now.

    On Oct 27th, 1999 OHI payed a .70 dividend, Jan 26th, 2000 it went down to .50. They payed no dividend Q2 of 2000 and Q3 saw a .25 dividend. I would also be cautious of this. In a year the dividend was slashed by almost a third and they skipped one payout. Just something to be aware of and keep an eye on.
    Apr 19 04:50 PM | Likes Like |Link to Comment
  • Retirement In A World Without Social Security [View article]
    Here is a link to who receives Social Security (2011 data):

    http://1.usa.gov/104BSbT

    There are many others that qualify for SS benefits that have not necessarily paid into it over a life time.

    With all the issues that the Federal Government is currently having I do not believe it would be wise to count on SS for retirement.

    Again, I would much rather people have more money in retirement with SS than not enough without SS.
    Apr 19 04:26 PM | 1 Like Like |Link to Comment
  • Retirement In A World Without Social Security [View article]
    Mike,

    It really is a perspective argument. Is the glass half full or half empty? With that said, I would much rather prepare for no Social Security and get it than prepare for Social Security and not get it.
    Apr 19 04:14 PM | 1 Like Like |Link to Comment
  • Retirement In A World Without Social Security [View article]
    Many companies give away shares to Directors as compensation. When looking at buybacks keep in mind whether the buyback is to return shareholder value such as IBM and AXP. Or is to it equalize the stock options that it gives away to it's executives.
    Apr 19 04:12 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    Again if I may ask, in your late 50's roughly how much of your annual expenses does this pay for?

    Also, if dividends not reinvested how much do you expect this payout to increase annually?

    Thanks,

    Jarrod
    Mar 23 02:06 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    The calculator does not include any price appreciation for the portfolio.

    http://bit.ly/14cBTSe
    Mar 22 04:49 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    Excellent! this is exactly the point.

    If I may ask, what would be the dividend income from this portfolio?
    Mar 22 04:47 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    The math is correct. The calculations do not take into account an increase in stock price. However, an increase in stock price is not the point of the article. The point is how a solid dividend along with dividend growth can turn even a small amount of capital into a large pile of cash as well as an amazing dividend income.

    Also take into consideration that the amount added each year is static. Under usual circustances the man will very likely increase the amount of money to the portfolio every year.

    As stated above the YOC is simply based on the original $1040 invested.
    Mar 22 04:45 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    The YOC is simply based on the intital investment of $1040. You may look at the online calculator that I used at http://bit.ly/14cBTSe
    Mar 22 04:39 PM | Likes Like |Link to Comment
  • How Forbes' Richest People List Can Build Wealth For The Average Person [View article]
    I'm not sure you are reading the article or graph properly. The 8% growth is for the dividend not the price of the stock.

    The premise of the article is not to simply invest in a stock with a dividend but a stock that increases it's dividend year after year.

    So simply put
    $1040 + $1040 x 1.02.

    The first column gives us how much dividend we get but does not add it to the portfolio total.

    The second column adds it to the portfolio total.

    The second year calculation dividend is no longer 2% it is now 2.16%, because of the 8% growth of the dividend. The third year is a dividend of 2.33%, 2.52%, 2.72%, 2.94% and so on.

    This is the power of compounding the dividend because the amount the dividend pays increases every year.

    This calculation does not increase the stock price and does not take into account an increase in stock price. This is done in order to show how an increase in a dividend can add up over time.
    Mar 21 11:34 PM | Likes Like |Link to Comment
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