My story is that I retired in 2005 at age 46, having achieved the goal of financial independence for both my wife and I. I put our retirement nest egg in 5 year CDs and finally being empty-nesters, we lived off the interest and my pension from 26 years of combined service in the military and USG. However in 2010, the CDs matured and the yields dropped from 6% to 3%. We cut back on the world cruises and lots of other unnecessary expenses, but after 3 years of this and no end in sight I decided to turn our financial assets over to USAA Wealth Management.
I told USAA that I wanted maximum income, could withstand volatility, but not substantial long term losses (over a year) in principal. Every month I would look at how they were doing. The picture was not pretty. I was averaging only 1.4% in monthly income after their 1% fee was deducted; plus I was losing principal because of the decline in precious metals and bonds in 2013. It was time to take personal control over our finances once again and I began to build two portfolios.
One was with low cost Vanguard and was oriented towards conservatively managed, low fee, balanced dividend income funds like Wellington and Wellesley, but also included some more specialized growth funds. The Vanguard portfolio I leave on auto-pilot while I take all the dividends and capital gains. The other portfolio is composed of 27 CEFs and this is the one I actively manage.
Before I invest in any CEF, I do research on SA and the web, and I use my professional engineering and analysis experience to conduct due diligence using Morningstar's data and tools, CEFanalyzer, CEFconnect and the investment web site. I carefully select investments with the goal that they will not be traded and held throughout our retirement. In a way I have gone back to work part time.
I have invested in these CEFs: AWF, HYT, BIT, BBN, DSL, DBL, EOS. ETW, DFP, PFO, FFC, FLC, GOF, GBAB, VTA, HTD, INB, NHF, JRI, PTY, PCN, PCI, PDI, PKO, PFN, UTG, RIV
and these Vanguard funds: VHCAX, VDIGX, VEIPX, VHDYX, VSEQX, VWIAX, VWENX
I always welcome any critical discussion and advice!
I am a 23 year old college dropout, Chartered Wealth Manager, investor, board member, and most importantly entrepreneur. I am personally extremely fiscally conservative, so I can accumulate high-quality dividend paying securities of various kinds and here and there invest on specific ideas/companies I find attractive. I am primarily a long investor with mid to long term holding periods.
I am a licensed Series 65 Investment Advisor Representative: any opinions, ideas, copy or content I produce on or for SeekingAlpha are not intended to be investment advice of any kind. Readers should not in anyway take action to buy, sell, or hold any investments based on my opinions, ideas, copy or content and should always seek the advice of a professional when making investment or financial decisions. Investing involves the risk of loss, including the loss of any principal.
I am 40 and would like to retire before 60. I am fortunate to work for a state government and I am vested in their pension. So, I am set when I turn 60+. Because I don't have to worry about saving for a normal retirement age, I have been able to put almost all of my savings towards the goal of early retirement, by investing in a taxable brokerage account.
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All the Best!
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