How Investing For The Long Term Helps Reduce Market Risk [View article]
What really sucks is stumbling on this kind of knowledge/approach at 46 (I'm 51 now). Better late than never, I guess, but had I realized (or been taught) the power of compounding and dividend reinvestment out of the gate, my wife and I would be retired now - both of us absolutely *hate* working for The Man ;-).
So I am desperately trying to get my 16 yr old niece to understand. Start early and often. She is my only relative with the time to really make it work. And you have to understand reinvestment/compounding "in your gut" (for want of a better phrase) - simple intellectual "understanding" doesn't motivate people, from what I can see. I know *accountants* who don't get it. :-(.
You say you don't understand dividends...do you understand the concept of compounding? Can you see how that might work (especially in an IRA) as you reinvest the dividend in more shares of the same company, or another dividend-paying company, and these newly-acquired shares throw off their own dividends to be reinvested...and so on, and so on...and then they tell 2 friends, and those friends tell 2 friends, and so on (old shampoo commercial)...
Drifted a little there. Sorry. And if the company raises the dividend each year, that adds to the compounding...and (this is important) - you never have to sell a single share if you don't want to.
Of course, you could layer your covered calls and put sales on top of that - but you do risk getting assigned on the calls (yes, you LOVE that, I know - but I think it messes with the lovely compounding scenario I described).
Awaiting a characteristically twisted Acs response...
Open Letter To ETF Industry: Create A Better Dividend Growth Product [View article]
This is such a great idea that I was screaming at my monitor while reading this! I have found the same dearth of anything good in the dividend ETF universe.
The only thing I would add is to make sure that the dividend payouts from this ETF occur on at least a quarterly basis (i.e., not annually or semi-annually).
Whatever Cliffs Natural Resources Does, I Want It For A Week Or Two [View article]
Thanks for your answer to my ITM/OTM question. I have generally stayed away from writing ITM, but if you think the underlying is gonna drop, well...I could see it.
Whatever Cliffs Natural Resources Does, I Want It For A Week Or Two [View article]
Why do you prefer ITM options to slightly OTM options? The obvious answer is higher premium; but there are trade-offs. I'd be interested to hear your pro/con analysis.
Fueling Costs For Natural Gas Are More Expensive Than Electric Vehicles [View article]
"If the government were to support its development, we would likely see a much lower CNG/Gas comparison price even if natural gas prices were to rise."
*Exactly*. But you won't see that from this administration. Chu thinks we should run the World on rainbows and Unicorn farts.
6 Reasons Energy Transfer Equity Should Be In Your Income Portfolio [View article]
Bret,
Probably an obvious answer, but not to me :-(. Why did you choose ETE over ETP? I see ETE has (at times) performed better, but then its yield is 6.4% vs. 7.63% for ETP. I assume ETE is also structured as an MLP, so you'd still have the tax issues.
428 Large Companies Have Risky Dividends [View article]
How Investing For The Long Term Helps Reduce Market Risk [View article]
So I am desperately trying to get my 16 yr old niece to understand. Start early and often. She is my only relative with the time to really make it work. And you have to understand reinvestment/compounding "in your gut" (for want of a better phrase) - simple intellectual "understanding" doesn't motivate people, from what I can see. I know *accountants* who don't get it. :-(.
Dave - how did you "bring it home" to your kids??
Thanks,
Chris
I Don't Understand Dividends [View article]
You say you don't understand dividends...do you understand the concept of compounding? Can you see how that might work (especially in an IRA) as you reinvest the dividend in more shares of the same company, or another dividend-paying company, and these newly-acquired shares throw off their own dividends to be reinvested...and so on, and so on...and then they tell 2 friends, and those friends tell 2 friends, and so on (old shampoo commercial)...
Drifted a little there. Sorry. And if the company raises the dividend each year, that adds to the compounding...and (this is important) - you never have to sell a single share if you don't want to.
Of course, you could layer your covered calls and put sales on top of that - but you do risk getting assigned on the calls (yes, you LOVE that, I know - but I think it messes with the lovely compounding scenario I described).
Awaiting a characteristically twisted Acs response...
User 293041
Open Letter To ETF Industry: Create A Better Dividend Growth Product [View article]
The only thing I would add is to make sure that the dividend payouts from this ETF occur on at least a quarterly basis (i.e., not annually or semi-annually).
Let's hope someone takes you up on it.
Chris
Whatever Cliffs Natural Resources Does, I Want It For A Week Or Two [View article]
Whatever Cliffs Natural Resources Does, I Want It For A Week Or Two [View article]
Thanks in advance,
Chris
When Can You Really Retire? [View article]
About the same as the odds of being mauled by a Polar Bear and a Regular Bear - in the same day.
:-)
Fueling Costs For Natural Gas Are More Expensive Than Electric Vehicles [View article]
*Exactly*. But you won't see that from this administration. Chu thinks we should run the World on rainbows and Unicorn farts.
6 Reasons Energy Transfer Equity Should Be In Your Income Portfolio [View article]
6 Reasons Energy Transfer Equity Should Be In Your Income Portfolio [View article]
Probably an obvious answer, but not to me :-(. Why did you choose ETE over ETP? I see ETE has (at times) performed better, but then its yield is 6.4% vs. 7.63% for ETP. I assume ETE is also structured as an MLP, so you'd still have the tax issues.
Just curious as to the rationale. Thanks.
Preparing Your Portfolio For Possible Mid-East Turmoil [View article]
There are E&P companies in the Bakken; MLPs there; but Royalty Trusts? Is anyone aware of any trusts in the Bakken?
Is Enduro Royalty Trust A Long-Term Yield Play? [View article]
Got the message, but would you care to tell us *WHY* you think it's a bad apple???