The editorial infuriated me. We all live the consequences of our actions. I chose to work my way through college and graduate school, worked every day after graduation (no back packing through Europe), and saved and invested as much as I could. My husband and I didn't buy new cars every year, and we generally lived below our means. We figured it was our responsibility to plan for unexpected contingencies and to finance our own retirements. Yes, we managed to save and have some net wealth, but why are we suddenly on the hook for all the folks who made other choices that have left them less prepared? I'm not talking about the truly needy. I live in a loopy liberal state (Washington) and every discussion about government spending gets the same response, let the "rich" pay for it. Well, it seems to me that the "rich" is anyone with more money than the person talking.
Hi Dave, Been a reader since I started investing in 2009. I am so grateful to have found SA and the "old" DG authors.
In 2009, my husbands job was eliminated and we were suddenly in retirement two to three years earlier than planned. He had to take a reduced social security benefit. Fortunately, we had saved like crazy, and had a pension that covered about half of our expenses, but it has no COL provision. We were OK as long as we watched expenses, but I was worried about future inflation, and I decided that we would not touch any principal for four years, until I hit social security eligibility, and our financial situation eased up a bit. As interest rates were so bad, I had to change my ultra conservative investment strategy of CDs and Treasuries. I came across an article by DVK, found his book then other authors, like you (and Norm) and I found DGI. It just made sense to my situation.
I was lucky to have started when I did, because I bought some great companies at bargain bin prices, and with dividend reinvestment of most, not all, companies, our portfolio has grown dramatically. Now I realize it was dumb luck to have started when I did, and I just try to keep learning from the smart guys and become a better investor.
Well, I am now eligible for social security, and my first goal has been met. But having learned so much here, I have a new goal, which is to continue to leave principal untouched, for the most part, and build that income stream every year. I love updating my dividend spreadsheet every month and see those dividends compounding and increasing. We don't have kids, but it would be nice to leave a big chunk of money to our favorite charities. Anyways, I want the peace of mind of knowing there are ample funds if (when) we hit a big medical bill. Retirement is great, but we are finding more and more body parts start to need replacement! :)
Hope you and the "old" authors, Norm, the David's, Chowder, keep hanging around SA, because I depend on you guys! Marilyn
Approaching Retirement: Things To Consider Concerning Social Security [View instapost]
Dave, I turn 62 next week and I decided to start drawing my SSI as soon as I can. My DG income is substantially higher than my SSI, but I never considered not taking the SSI as soon as possible. Like Eddie, I did the math on the break even point, and realized I'd have to live a long, long time to break even. But some emotional factors got into it, too. Given how screwed up the government is with the budget and deficits, I figure I better collect now, before Congress changes eligibility/benefit rules, which is inevitable. I figure at least I will be grandfathered in. Part of it, too, is just that I paid so darned much for so many years (always at the maximum contribution rate), I want some back NOW so I can invest it. Wish I had been able to opt out of the system and invest it myself, I'd be sitting pretty now. But I think you are probably taking the more rational approach to the issue! Thanks for the article. Marilyn
Strategies For Dealing With A Possible Market Meltdown [View article]
Dave, I really liked the clarity of this article. I was lucky enough to start my DG investing right after the big market drop, so I am sitting on a lot of unrealized gain. I am doing nothing, and have the comfort of those gains as a margin of safety. It will be a test of my resolve if we see a correction of more than 20%. Thanks for the great article! Marilyn
Attractively Valued Blue-Chip Dividend Champions For Your Retirement Portfolios [View article]
Thanks Chuck for another superlative article. Very timely for me, as I am looking to invest proceeds from a CD that just matured. I keep hoping for the big "whoosh" down, but you have shown that there are fairly valued possibilities out there right now. I will be rereading and studying your article and FastGraphs examples carefully for ideas! Marilyn
Tim, Enjoyed your article very much, it is well reasoned I started a position earlier this year and have been debating whether to sell, and appreciate your sharing your thinking on the issue.
Buy Raytheon For Dividend Growth During The Summer Market Pullback [View article]
Norm, Thanks to you and an earlier article/ comment on RTN, I started a position in the summer of 2011 at about the 4% yield point. It has been an outstanding performer, and I have been reinvesting dividends since then. I hope you are right about a pullback, and I would be very happy to add to my position. What is your entry point now, is it the 4% yield?
Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now? [View article]
Chuck, Many thanks for this timely article, which directly addresses an issue I grapple with, as I started investing in 2009. I have to say, it is a nice problem to have! Your examples with Fast Graphs are, as always, a terrific learning tool, which will help me as I make my own analysis of my portfolio ( with Fast Graphs, of course!)
What Stocks Are Most Commonly Held By Dividend Growth Investors? [View article]
Dave, Don't own the following: ABT (sold before split) AFL,CB,CINF,LEG (won't own financials) ADP, BDX, CL, EMR (would like to own at lower valuations) HAS, LMT, MDT, PAYX,PFE, TGT, VZ
Dividend Growth Investing And The Reluctant Spouse [View article]
Bob, this article really struck a chord with me. My husband and I have been retired for almost four years, and he has no interest in finances or investing, telling me that "you do such a good job, why should I get involved?" However, after a lot of hollering, I got him to take care of monitoring the budget and paying all bills, as Step 1. That gave his a newfound appreciation for how money comes in and goes out of our budget.
Step 2 is encouraging him to read some good authors at SA, and at least become familiar with the DGI strategy. I also review investments with him regularly (and while I am not sure he is really listening) and hope he will have some familiarity with our plans and know where to get some good advice should he have to manage our portfolio himself. I am leery of financial advisors, after some bad past experiences.
Just as an aside, my mother who is 91, has had a substantial income stream from dividends of a utility stock portfolio that my father set up before his death in 1991. She never did a thing but deposit the checks and there have been some bumps with some of the companies but those dividends have supplemented her social security sufficiently to let her live very comfortably. She plans to leave the now sizable number of shares (mostly SO, D, PPL) to us kids.
Dividend Growth Investing And The Reluctant Spouse [View article]
RAS,
I, too, gave up on vanguard's financial planners several years ago. All they did was run Monte Carlo simulations and recommend diversification thought the purchase of many different Vanguard funds. I got disgusted and put most of our portfolio in CDs and Treasuries, which was a very lucky move in 2007...since then I discovered the good DGI authors on SA and have been converting into div stocks. But I would not count on Vanguard for financial planning advice.
Get Bond-Like Returns From Uncommon Stocks [View article]
Bob, This article is excellent, as were your previous articles. I am trying to move funds from a large holding in Vanguard GNMA, and would like to add to my DG portfolio, but can't overcome my fear that the market is due for a substantial correction (2008-9 is still fresh in my memory). So I have used some of the alternatives you outline as an interim solution, short term CDs, and shorter duration bond funds. It is not a satisfying solution, but I will hold off on equities for the next few months, anyways.
Your Bond Allocation For 2013: It's Time To Lower Your Risk [View article]
Bob, I have learned a great deal from these two articles, and appreciate your sharing your research and strategy for your own portfolio. I am trying to more funds from bond funds to dividend growth stocks, but it does take awhile, particularly given current valuations. I keep hoping for a market correction!
The Market Is Advancing: Is It Time To Sell? [View article]
I too bought NSC last fall and have seen a big gain. But as my objective is income stream, I hang tight. I view the gain as my margin of safety in the inevitable correction to come, because even though I am investing for income, I don't like to see my portfolio in the red. And I was happy this week to collect (and reinvest) my first dividend from NSC!
One Proposal To Fix Social Security [View instapost]
Why I Am A DG Investor [View instapost]
Been a reader since I started investing in 2009. I am so grateful to have found SA and the "old" DG authors.
In 2009, my husbands job was eliminated and we were suddenly in retirement two to three years earlier than planned. He had to take a reduced social security benefit. Fortunately, we had saved like crazy, and had a pension that covered about half of our expenses, but it has no COL provision. We were OK as long as we watched expenses, but I was worried about future inflation, and I decided that we would not touch any principal for four years, until I hit social security eligibility, and our financial situation eased up a bit. As interest rates were so bad, I had to change my ultra conservative investment strategy of CDs and Treasuries. I came across an article by DVK, found his book then other authors, like you (and Norm) and I found DGI. It just made sense to my situation.
I was lucky to have started when I did, because I bought some great companies at bargain bin prices, and with dividend reinvestment of most, not all, companies, our portfolio has grown dramatically. Now I realize it was dumb luck to have started when I did, and I just try to keep learning from the smart guys and become a better investor.
Well, I am now eligible for social security, and my first goal has been met. But having learned so much here, I have a new goal, which is to continue to leave principal untouched, for the most part, and build that income stream every year. I love updating my dividend spreadsheet every month and see those dividends compounding and increasing. We don't have kids, but it would be nice to leave a big chunk of money to our favorite charities. Anyways, I want the peace of mind of knowing there are ample funds if (when) we hit a big medical bill. Retirement is great, but we are finding more and more body parts start to need replacement! :)
Hope you and the "old" authors, Norm, the David's, Chowder, keep hanging around SA, because I depend on you guys!
Marilyn
Approaching Retirement: Things To Consider Concerning Social Security [View instapost]
I turn 62 next week and I decided to start drawing my SSI as soon as I can. My DG income is substantially higher than my SSI, but I never considered not taking the SSI as soon as possible. Like Eddie, I did the math on the break even point, and realized I'd have to live a long, long time to break even.
But some emotional factors got into it, too. Given how screwed up the government is with the budget and deficits, I figure I better collect now, before Congress changes eligibility/benefit rules, which is inevitable. I figure at least I will be grandfathered in. Part of it, too, is just that I paid so darned much for so many years (always at the maximum contribution rate), I want some back NOW so I can invest it. Wish I had been able to opt out of the system and invest it myself, I'd be sitting pretty now. But I think you are probably taking the more rational approach to the issue! Thanks for the article.
Marilyn
Strategies For Dealing With A Possible Market Meltdown [View article]
I really liked the clarity of this article. I was lucky enough to start my DG investing right after the big market drop, so I am sitting on a lot of unrealized gain. I am doing nothing, and have the comfort of those gains as a margin of safety. It will be a test of my resolve if we see a correction of more than 20%.
Thanks for the great article!
Marilyn
Attractively Valued Blue-Chip Dividend Champions For Your Retirement Portfolios [View article]
Marilyn
What's Up With Conoco's Dividend? [View article]
Enjoyed your article very much, it is well reasoned I started a position earlier this year and have been debating whether to sell, and appreciate your sharing your thinking on the issue.
Buy Raytheon For Dividend Growth During The Summer Market Pullback [View article]
Thanks to you and an earlier article/ comment on RTN, I started a position in the summer of 2011 at about the 4% yield point. It has been an outstanding performer, and I have been reinvesting dividends since then. I hope you are right about a pullback, and I would be very happy to add to my position. What is your entry point now, is it the 4% yield?
Many Of My Dividend Growth Stocks Have Become Overvalued, What Do I Do Now? [View article]
Many thanks for this timely article, which directly addresses an issue I grapple with, as I started investing in 2009. I have to say, it is a nice problem to have! Your examples with Fast Graphs are, as always, a terrific learning tool, which will help me as I make my own analysis of my portfolio ( with Fast Graphs, of course!)
What Stocks Are Most Commonly Held By Dividend Growth Investors? [View article]
Don't own the following:
ABT (sold before split)
AFL,CB,CINF,LEG (won't own financials)
ADP, BDX, CL, EMR (would like to own at lower valuations)
HAS, LMT, MDT, PAYX,PFE, TGT, VZ
Great article and responses!
What Stocks Are Most Commonly Held By Dividend Growth Investors? [View article]
D, NÉE, AVA, HRS, NSC, COP, KMI,RCI
Dividend Growth Investing And The Reluctant Spouse [View article]
Step 2 is encouraging him to read some good authors at SA, and at least become familiar with the DGI strategy. I also review investments with him regularly (and while I am not sure he is really listening) and hope he will have some familiarity with our plans and know where to get some good advice should he have to manage our portfolio himself. I am leery of financial advisors, after some bad past experiences.
Just as an aside, my mother who is 91, has had a substantial income stream from dividends of a utility stock portfolio that my father set up before his death in 1991. She never did a thing but deposit the checks and there have been some bumps with some of the companies but those dividends have supplemented her social security sufficiently to let her live very comfortably. She plans to leave the now sizable number of shares (mostly SO, D, PPL) to us kids.
Dividend Growth Investing And The Reluctant Spouse [View article]
I, too, gave up on vanguard's financial planners several years ago. All they did was run Monte Carlo simulations and recommend diversification thought the purchase of many different Vanguard funds. I got disgusted and put most of our portfolio in CDs and Treasuries, which was a very lucky move in 2007...since then I discovered the good DGI authors on SA and have been converting into div stocks. But I would not count on Vanguard for financial planning advice.
Get Bond-Like Returns From Uncommon Stocks [View article]
This article is excellent, as were your previous articles. I am trying to move funds from a large holding in Vanguard GNMA, and would like to add to my DG portfolio, but can't overcome my fear that the market is due for a substantial correction (2008-9 is still fresh in my memory). So I have used some of the alternatives you outline as an interim solution, short term CDs, and shorter duration bond funds. It is not a satisfying solution, but I will hold off on equities for the next few months, anyways.
Your Bond Allocation For 2013: It's Time To Lower Your Risk [View article]
The Market Is Advancing: Is It Time To Sell? [View article]