Thomas Smicklas

Thomas Smicklas
Contributor since: 2008
Absolutely correct. Savers WERE thrown under the bus. So were retirees.
Being forced to invest in securities with risk instead of AAA bonds and notes is playing with fire. Folks should be paid for the use of their money. The system is rigged in a quasi wealth re-distribution scheme to benefit government vote buying schemes for special interest constituencies.
Diego, my friend. You presented a nice article.
If I were you, I'd begin to plan your next article - perhaps on the defense sector.
Writing is a great learning tool.
The author does validate one rule of wealth management. Don't invest in anything you don't understand.
You need both, friend.
I again advise service within our military, including the Coast Guard, which is part of Homeland Security.
Aspiring to have one's children retire at 35?
Too often we let the world of investing blind us to the many, many other facets of life that are not only important to our personal development, but to the well-being of our communities and country.
If you are intent on a "35 and Out" goal for your children, do them a favor. Insist they enter the armed forces after college so they learn duty, honor, country and personal responsibility.
Maybe they won't waste years 36-90.
That said, your article presented noteworthy investment tactics.
Just as successfully as Sears and KMart, ultimately.
Surely you jest.
The author is young. He'll learn.
It's not what you earn...it's what you keep.
David...
Any thoughts on the proposed 44% tax on dividends that is called for in President Obama's budget.
The WSJ today has this issue covered very well, especially how it will negatively impact dividend investors.
Even if it does not pass this go around, it appears that retirees and the saving class are in the politician's crosshairs.
All this hoopla about dividends crashes when the WSJ today reported that under the Obama proposed budget, dividends are to be taxed at 44.8% -- over triple of current rate.
Even if the budget does not pass, this is what government thinking is on those who are in the saving class....maybe they do not count us as a constituency group for the 1012 elections.
Excellent piece. Here are a few somewhat off topic thoughts.
We can all see what the current administration has in mind for dividend-centric investors.
The sad fact is that dividend investors, already taxed on their initial income, and limited to $3g losses per year vs. unlimited taxes on gains are going to have to deploy aggressive tax avoidance strategies (many yet to be written) in the future. High taxes on dividends are what caused many investors to choose growth stocks and tax shelters back in the day. This caused dividend stocks to be somewhat less attractive.
Chasing yield will become increasingly risky. Many folks may well decide that the risk reward associated with the vagaries of the market, company performance and Uncle Sam taxing a huge bite out of dividend income is not worth the speculation. That said, I think avoiding dividend stocks as a class would be mistaken, so long as they are part of a muliti-faceted wealth strategy.
If anyone thinks that only the "1%" are going to be whalloped by these proposed tax increases, think again. Class warfare reigns supreme for the future.
PNC is a well run company. I saw the tout of BBT in another SA post today and just laughed.
Men vs clowns.
There is no comparison between the power of money and the power of authority and whim over others.
Putin and Obama have practiced the latter in a sinister, awesome display.
http://bit.ly/Amt2QC
January 28, 2012
source US econ. prof Michael Hudson, et al.
Based upon a recent study mentioned through Bloomberg last week, the AVERAGE holding period for a stock is 22 seconds.
Warp speed trading has dwarfed mutual funds, retail investors and even so-called program traders.
If this fact doesn't trouble stock market investors, they're on fantasy island.
Thank you. Many investors miss the obvious.
As a retiree myself, I am sensitive to one horse shows.
I concur that didvidend stocks are a facet of a portfolio that includes diversified income streams in areas other than stocks, such as bonds and an aggressive tax strategy (which is seldom If ever mentioned by the retirement community within SA).
Marrying correctly the first and only time is a great strategy as well....
Thanks for the clarification. Most dividend only SA articles that claim to be the retirement answer to living large are a potetntial bloodbath for mom and pop investors.
Excellent article.
There is something terribly wrong when the Fed throwns retirees and the saving class under the bus with artificially low rates to finance unsustainable largesse orgies.
It forces mom and pop investors to chase less than secure yield, and sends a message to savers that they should not worry about providing for their retirement or fulfill their debt obligations...spend now (see mortgage walkaways). Uncle Sam will provide your every want in exchange for your vote.
Advocating one class of investments for a retirement account does a great disservice to mom and pop investors. What is going to be advised when their stock portfolio dives 25%+ when they need the resources to live? Does anyone think an older retiree is not going to panic and sell low? This is dividend stock puff on steriods.
Authors of a strategy such as this can just walk away to their next article when a bear market ravages. Retirees suffer in many ways.
Never fight the Fed. Money can be better deployed elsewhere.
Immelt is playing it smart - like Buffett, Soros, et al - pander to the left to protect their companies against assult from progressives and the so-called OWS rabble.
It's an insurance policy aganist being WalMarted.
Why else support the Democrats?
Data released this week brought to my attention (via Bloomberg) a startling stat:
The AVERAGE holding time for a stock traded on the NYSE and NASDAQ is 22 seconds!
Used to be that frequent traders, retail investors and institutions moved markets. Cumputer hyper speed trades have taken over. Is the market rigged?
Cool article that was creatively written.
I guess the real artists...those with years of tortuous practice to gain entry into the world of accomplished music - opera, symphony, chamber, even excellent wind ensembles - continue to ride the back of the bus as our culture becomes more coarse with each passing year.
A fool and his money are soon parted....
Best investment advice I ever received.
The MetA is a good share as well.
I believe that owning selected preferred shares trading as per your criteria is essential for the income investor. Having fixed preferreds hedged by those with inflation protection is an obvious investment decision.
Blindly throwing cash into PFF or the like is a choice poorly made. Selection is essential.
Statistics don't lie.
But, you can lie with statistics.
Your premise of compounding is sound and should be seriously considered by practically any level of investor. Unfortunately in our age of instant gratification, it is boring. Most folks will either tire of it or decide on a whim that their money could be better invested elsewhere.
Folks would rather go to Vegas than be conscientious investors. The national stats on net worth speak for themselves.
Regarding taking a long (decades) view towards investing. I think that the rapid advance and expectations of instant gratification, for example, within social media have made long term a matter of hours rather than decades.
Focusing on long term investment results, or long term anything, in our Twitter and Facebook world is problematic for many.
Excellent article. Carefully selected preferreds are a fine inclusion to one's income portfolio, so long as they are hedged by inflation-indexed instruments.
triguy: PFF is a minefield.