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Mike Nadel  

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  • How Much Money Will You Need To Retire? [View article]

    Bravo! And congrats to you.

    The majority of folks do not need tons of money in retirement but have been conditioned to think they might. Sometimes, this results in them working themselves to death to chase an unnecessary goal.

    For sure, some people WANT that much money because they want to keep up a lavish lifestyle. That is very different. And some live in expensive parts of the country and either don't want to move or can't move because of family situations, etc. Some have health concerns requiring more money.

    All of the above is why there is no one-size-fits-all guideline.

    The fact is that millions of retirees get along just fine with nowhere near a six-figure annual income. My 89-year-old father-in-law recently moved in with us. Until January, he lived by himself for 30 years. He was a janitor for a living, never had $1M saved -- not even close! -- and he still has plenty of money in the bank. He will never want for anything.

    Lots of scare tactics out there about people "needing" $1M or $2.5M or $5M to avoid being destitute!

    Apr 1, 2015. 12:14 PM | 2 Likes Like |Link to Comment
  • The Bear Claws My Dividend Growth Portfolio - Will I Cut And Run? [View article]

    Fair enough. Ally used to offer a 5-year CD with an above-market rate and only two months of interest penalty for early withdrawal. They don't have that product anymore, but I know one certainly can invest with that kind of situation in mind, as you apparently have.

    I don't have enough cash and the spread is not great enough for me to play around like that, but I definitely could see it benefiting some.

    Oh, and I never said I "feared" CDs. I used to own many of them and I likely will invest that way again someday. I just don't find them compelling right now.

    Apr 1, 2015. 11:46 AM | 1 Like Like |Link to Comment
  • How Much Money Will You Need To Retire? [View article]
    I do not consider how much $$$ my wife and I will need to retire. Kind of like B&H, I estimate how much money we will need each year during retirement, subtract our expected Social Security and pension pay and come up with a necessary income figure.

    In our case, we expect about $5500 monthly in SS and pensions, which is 66K per year. My goal is to receive another $3000/month in dividends, or 36K per year (in today's money). That's $102K per year, which is at least 3X what we live on.

    We have no debt and have a fun but not an extravagant lifestyle. Our single biggest expense -- by far -- is our investments, as we sock away the maximum in our Roth IRAs and 401ks. When we retire, that expense will go to zero. As Robert said in an earlier comment, our biggest expense then likely will be health care.

    So when I think about what my "number" is, I don't think in terms of millions of dollars we have to save but about $36,000 in annual dividend income. ( We're already more than 80% of our way to that goal, with 6-8 more years of investing and dripping to get there.

    Unless something cataclysmic happens -- such as all the Dividend Aristocrats cutting their payouts simultaneously -- we should reach our goal well ahead of schedule.

    Apr 1, 2015. 11:41 AM | 3 Likes Like |Link to Comment
  • Procter & Gamble's Headwinds Are Unilever's Tailwinds [View article]

    I have not heard of this dividend cut, and neither has Mr. Market, as PG is trading slightly higher on an otherwise down day.

    PG probably will announce its dividend plans next week. Were I a betting man, I'd say there is 0.2% chance of a cut, 2.8% chance of a freeze and 97% chance of a raise.

    Apr 1, 2015. 11:24 AM | Likes Like |Link to Comment
  • Procter & Gamble's Headwinds Are Unilever's Tailwinds [View article]
    Comparing the two, UL seems like more of a capital gains or total return play. Even as the company raises its dividend, U.S. shareholders keep getting dividend cuts in real dollars, and a reversal of that trend doesn't seem imminent.

    As for UL's "soaring share price," unless I'm reading things wrong, it is only 7.5% above its 52-week low and it actually has traded in quite a narrow band over the last year.

    FWIW, Zack's calls UL a "sell," and S&P Capital IQ has given it a $37 12-month target price. Both analysts call PG a "hold." Jefferson Research is concerned about PG's earnings quality (JR doesn't cover UL). Again, FWIW.

    Long term, I'd be happy to own either or both, and I do like UL's emerging markets exposure because my portfolio is lacking there. For now, though, I think I'll hold off on UL while I enjoy my PG divvies.

    Apr 1, 2015. 09:15 AM | 2 Likes Like |Link to Comment
  • Philip Morris: A Dividend Cut Is Possible [View article]
    PM is my portfolio's second-highest income producer. The last thing I need is more PM. And yet ...

    I agree with B&H and Hilo that I might be "forced" to buy more! I certainly am going to buy a little more via drip next week when divvies are paid, but should I buy still more? Hmmm ...

    I also own MO, another of my core positions, so that would be an awful lot of tobacco!

    As for a potential dividend cut, I see them more likely to take on some debt for one year to see if things improve. I certainly wouldn't be upset if they froze the divvy for a year or two, however. Heck, from a balance-sheet perspective, they probably should.

    Apr 1, 2015. 09:01 AM | 6 Likes Like |Link to Comment
  • The 3 Paradoxes Of Income Investing [View article]

    Now come on. When I say "we" don't know what the rules will be, that includes me, the papers and you!

    I am continuing to invest within my Roth IRA because I can only play by the rules as they exist. It does no good to speculate wildly.

    Mar 31, 2015. 11:28 PM | 2 Likes Like |Link to Comment
  • The Bear Claws My Dividend Growth Portfolio - Will I Cut And Run? [View article]

    I agree. I have absolutely no use for CDs anywhere, and certainly not at online banks.

    I do park my cash in an online bank's savings account at a tad less than 1% annual interest, though. It's better than most short-term CDs and I have instant access to my cash if I need it. And it's WAAAAAAY better than any mutual-fund company's money market rates.

    Mar 31, 2015. 11:21 PM | 2 Likes Like |Link to Comment
  • Expected Dividend Increases In April [View article]
    XOM, CVX, PG, JNJ, SO, COST, AAPL, IBM ... April is a great month for divvy hikes!
    Mar 31, 2015. 10:18 AM | 4 Likes Like |Link to Comment
  • The 3 Paradoxes Of Income Investing [View article]

    That is exactly where I stand. I love the Roth as an investment vehicle and have steered many, including my kids, into them. But who knows what the laws will be 5, 10, 20, 50 years from now?

    I value diversification within a portfolio, and one of the many ways to diversify is by having investments in Roth IRAs, traditional IRAs and taxable accounts.

    Mar 31, 2015. 10:04 AM | 1 Like Like |Link to Comment
  • Mr. Valuation's Best Ideas For Retirement And Dividend Growth Portfolios: Emerson Electric [View article]

    Man, I just realized I need a snack!

    Mar 30, 2015. 11:24 PM | 5 Likes Like |Link to Comment
  • It's New! It's Nifty! It's The Dividend Growth 50! [View article]


    Mar 30, 2015. 04:30 PM | Likes Like |Link to Comment
  • Income Investing Strategy: Are You A Closet Market Timer? [View article]

    As always, I appreciate your perspective.

    Mar 30, 2015. 02:25 PM | Likes Like |Link to Comment
  • Don't Over Think It: Buy Microsoft [View article]

    Here's some more analyst stuff:

    Jefferson Research gives the following scores to MSFT:

    Earnings Quality -- Strongest.
    Cash Flow Quality -- Strongest.
    Operating Efficiency -- Strong.
    Balance Sheet -- Strong.
    Valuation -- Low Risk.
    Overall -- BUY.

    Eva Dimensions calls it a BUY, ranking it 94 on a scale of 1-100.

    S&P Capital IQ gives it a 12-month target price of $48.

    No, analysts aren't the gospel, but I think some of them can be part of research.

    Mar 30, 2015. 02:22 PM | 2 Likes Like |Link to Comment
  • Mr. Valuation's Best Ideas For Retirement And Dividend Growth Portfolios: Emerson Electric [View article]

    varan comes onto the comment streams of DGI articles to stir things up. He tells DGI proponents how wrong they are and often resorts to name-calling.

    And he does it over and over and over again. I'm convinced he likes to just get a rise out of folks, and he often succeeds.

    If you can show me an example of a DGI proponent going onto the comment stream of an article that has nothing to do with DGI -- perhaps one even extolling varan's preferred strategy -- and telling proponents of that strategy that they are wrong and then calling them cultists, I would like to see it.

    Mar 30, 2015. 02:15 PM | 9 Likes Like |Link to Comment