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WmHilger1

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  • 50/50 Portfolio (BDCs And mREITs) High Yield 10%, H1 2015 Update [View article]
    Bells, another case of mistaken beliefs! Where do all of these come from? Please read the part of my internet interview where I discuss BDC stocks. As the BDC management and employees continue to work and make money for themselves, we stockholders gain right along with them. Similar situations pertain to REIT and MLP stocks, as well as factories, retail stores, restaurants, and nearly every income producing endeavor in the world, with the possible exception of certain financial world places which I won't even bother to discuss, but which are necessary to provide the wherewithal for us to invest our money!!
    Jul 5, 2015. 06:21 PM | Likes Like |Link to Comment
  • 50/50 Portfolio (BDCs And mREITs) High Yield 10%, H1 2015 Update [View article]
    Where on earth did you get THAT information? BDCs, REITs, and MLPs have just as good a chance of long term high yields as any other stocks. They buy and sell new investments all of the time, thus continually revising and renewing their investment base and, consequently, continuing their existence.
    Jul 5, 2015. 06:06 PM | Likes Like |Link to Comment
  • 50/50 Portfolio (BDCs And mREITs) High Yield 10%, H1 2015 Update [View article]
    David, even if that is their only investment, there is still no validly effective reason for putting MLP stock in an IRA. First of all, as I learned at about age 15, using a tax sheltered investment, such as an annuity, in a tax shelter is NOT a productive use of the money. You can't shelter a shelter! There are many non-tax-sheltered investments available that could have and should have been used in her IRA.

    Secondly, she indicates that the taxes are payable on an active account from which she is drawing RMD. UBTI payable upon divestiture of the person's entire interest in an MLP does not sound to me like RMD selling. Perhaps it is but, again, it is NOT an effective way to go! Either she got some very BAD investment advice from someone interested only in selling the stock to her, or she made a bad decision of her own. In the latter case, she has only herself to blame and her failure to perform due diligence before investing her money. In the first case, she should get a new investment advisor IMMEDIATELY!
    Jul 5, 2015. 06:00 PM | Likes Like |Link to Comment
  • 50/50 Portfolio (BDCs And mREITs) High Yield 10%, H1 2015 Update [View article]
    I fail to understand what the dickens some of the negative comments on this string are trying to say (;-o). They seem to go round and round trying to establish the desirability of various other investing methods and the fallacy of Income Investing and don't convince me AT ALL. I have my own thoughts about some of those comments, but they are too lengthy to post here. I only suggest that those naysayers read my bio and/or the recent article about an internet interview with me.

    I would also like to say that many of those concerns against Income Investing would not even exist if the stockholders stopped looking for the pot of gold at the end of their hypothetical rainbows, or to hit a home run with every swing. Fiscal stability does not happen overnight! It comes from attainable, measured steps taken over extended periods of time. Steady, continued progress wins the race!!!!!!! But it also requires that that pace be sufficient to keep up with the pack and not fall too far behind. I did not achieve my ~$2M portfolio in 1, 2, or even 3 years. It took me many years, but I made sure that I was progressing at as fast a pace as was attainable during each of those years. A good income producing portfolio helped me immensely in that regard.
    Jul 5, 2015. 12:31 PM | 4 Likes Like |Link to Comment
  • 50/50 Portfolio (BDCs And mREITs) High Yield 10%, H1 2015 Update [View article]
    Maria, if I may ask, what the dickens are you doing with MLP stocks in your IRA after all of the discussions on SA about the inadvisability of that???

    Also, I am not familiar with taxes on MLP stocks in an IRA since I have never done that, but I do know that over 90% of the income from most MLPs are tax sheltered until you divest yourself (sell) ALL of your interest in that company OR get back 100% of your investment in the company!

    BTW, I own ~$400K of stock in 14 MLPs and have owned some of them for ~30 years so I believe I am fairly well versed in their ownership and taxation. Your situation confuses me! Are you possibly getting bad tax advice?
    Jul 5, 2015. 12:04 PM | 1 Like Like |Link to Comment
  • 50/50 Portfolio (BDCs And mREITs) High Yield 10%, H1 2015 Update [View article]
    rip2451 & bkkdude, do you think that high yield stocks will go down forever? I don't!

    I have faith in the capitalist method and the talents of the American public to fight their way through this current economic mess, just as they did in 2010-11.

    And when HY stocks do recover, I expect the HY stocks to significantly outperform the market, just as mine did in those years and a couple after that. In the meantime, I continue to collect those SPENDABLE dividends at the 10% to 16% levels, while holding and buying additional underpriced stocks. Those holding and buying LRLY stocks for accumulation would have to sell theirs to reap the capital gains while I could continue to hold mine as they increase in value and still pay nice dividends.
    Jul 5, 2015. 08:38 AM | 4 Likes Like |Link to Comment
  • 50/50 Portfolio (BDCs And mREITs) High Yield 10%, H1 2015 Update [View article]
    HYI, I just returned from a 2 week trip to Florida where I was essentially out of touch with the world. This article was the very first that drew my attention when I logged back into SA for the first time in 2 weeks, because it so closely follows my own investment strategy and portfolio holdings using MRHY. Thank you for publishing it.

    Naturally, I don't own exactly the same BDC and REIT stocks that you do, and I also hold over $1M in my personal taxable account, of which equal thirds are invested in MLP stocks, BDC stocks, and REIT stocks. The numbers of my IRA holdings pretty well match yours, as do the results of each portion of the total portfolio! I think OUR methods are the way to go with ANY stock portfolio.

    Keep up the good work by promoting INCOME investing as a valuable and viable alternative to Capital Gain gambling!
    Jul 4, 2015. 08:55 AM | 5 Likes Like |Link to Comment
  • My Favorite Utility Stock: 41 Consecutive Years Of Increased Dividends [View article]
    OK Student of Life who obviously hasn't adequately assimilated much of that information! I plan and EXPECT to live to about age 100, but I also plan to have more than adequate resources when I do expire! My current asset total is seven digits starting with the numeral 2! My current annual income also starts with a 2, with 6 digits. All of this, I attribute to my investing philosophy of MRHY, and the lessons I have learned over MY lifetime.

    When/if you achieve this level of asset holdings, you may have learned something from Life. In the meantime, don't try to tell me and my 4xx followers how to live our lives OR how to invest OUR money OR evaluate the risk levels of our investments! We get along just fine with what and how we do it, unlike many of the younger set who only THINK they know the secrets of life and investing!
    Jun 20, 2015. 03:15 PM | 3 Likes Like |Link to Comment
  • My Favorite Utility Stock: 41 Consecutive Years Of Increased Dividends [View article]
    NAV and Market Value are almost meaningless to me! I never hold more than ~ $50K in any one stock. If they go bust, it only hurts for a little while until I recoup the loss with other high yield dividends. As mentioned somewhere else, I have already received about 60% of my original investment in AI and last year's distributions have been reclassified as ROCs, so I wouldn't lose much if they went busted, which I don't think they will!

    Now, I'm sure that the same situation doesn't apply to other people, but I can't speak for them, just my own situation and experiences. I am, in fact, down in my assets by ~ $326K since the BDC, REIT, and MLP stocks started their slow downward trend a couple of years ago, but my MRHY stocks are still paying me about the same amounts as before! That is why I invest only in those stocks. Market gyrations don't bother me! Also called SWAN, I do!!!
    Jun 19, 2015. 03:58 PM | 2 Likes Like |Link to Comment
  • My Favorite Utility Stock: 41 Consecutive Years Of Increased Dividends [View article]
    No Problem! I always have to file amended returns every year anyhow because VGR reclassifies 75% of their dividends as ROC near the end of September. I'll just add AI to that re-filing! And the IRS isn't very picky about when you re-file since THEY OWE YOU MONEY (lol)!

    It also means that you and I will be due tax refunds on all reclassified distributions that we have received and paid taxes of 15% as Tax Advantaged (Qualified). This is done on Form 1040-X and isn't really very difficult or costly, especially since the hard work was done for April filing, and the refunds (plus interest from the IRS) is certainly worth it!.

    State taxes will, of course, also have to be amended. The total refunds should be about 15% of your reclassified distributions. In my case several thousand bucks (;-o) ! Any time I can get money back from the IRS is a GOOD DEAL!
    Jun 19, 2015. 12:43 PM | 3 Likes Like |Link to Comment
  • Target: Would You Prefer Buybacks Or More Dividends? [View article]
    Sorry, I was interrupted for making dinner plans.

    Now, if your broker charges commissions based on one flat charge for each transaction, this is almost a non-event, EXCEPT for the inflation situation possibilities when fees, commissions and taxes have risen. If he charges based on the AMOUNT of the transaction, you have run into two charges for the increased value of the stock! Nothing is ever as simple as it might seem!
    Jun 18, 2015. 05:34 PM | Likes Like |Link to Comment
  • Target: Would You Prefer Buybacks Or More Dividends? [View article]
    Aaron, I spot one HUGE fallacy in your comment! How do you expect to get any money out the stock shares if you don't sell it? At that time, you will have to pay commissions to your broker, PLUS Capital Gains tax on the difference between what you paid for it and what you get for it. And assuming that your income has increased over that time period, or inflation has caused the capital gains tax rate to be increased, your capital gains tax might well be more than you would have paid in annual installments for the dividends. Of course, if your income has decreased, you might pay less, but who wants that situation?

    Assuming the amount of the dividends paid to you over that time period is the same as the increase in the stock value because of the buybacks, what has happened? You have just paid the brokerage commissions for the dividends that you could have received commission free! No-brainer? I think not!
    Jun 18, 2015. 05:10 PM | 1 Like Like |Link to Comment
  • My Favorite Utility Stock: 41 Consecutive Years Of Increased Dividends [View article]
    RedCloud --- Interesting! The older I get, the more tolerance I have for risk!!!!!! I probably won't outlive my capital assets and, even if I do, I will probably be so old that I don't give a damn where I spend the time.

    BTW, I do have a Living Will!
    Jun 18, 2015. 09:09 AM | 2 Likes Like |Link to Comment
  • Target: Would You Prefer Buybacks Or More Dividends? [View article]
    Unless I remember incorrectly from my latest income tax filing, the tax rate on dividends from "Tax Qualified" US and Canadian companies is the same as the Capital Gains rate.

    Whether of not this is true, as a Senior Citizen, I emphatically prefer dividends! For one thing, I don't have to pay broker commissions on dividends such as I do upon sale of stock! For another, I would much prefer cash in the hand to a POSSIBLE increase in the price of a stock. "A bird in the hand is worth two (2) in the bush"!!!!!!!
    Jun 18, 2015. 09:04 AM | 1 Like Like |Link to Comment
  • My Favorite Utility Stock: 41 Consecutive Years Of Increased Dividends [View article]
    StudentofLife, I see that AI just declared another quarterly dividend of $0.875 per share. They will have have been paying this dividend since 6/30/11. Thus, they have paid me $14.00 in dividends per share in those 4 years. My average cost per share on it is $23.14, equaling a 60.5% cash return.

    I'LL TAKE IT any day over your precious low risk, low yield, slow growth stocks even though AI is now selling at slightly less than my average cost per share, and approximately the same as many other high yield stocks. I'm not losing money, I'm gaining it fast!

    In other words, I'll gladly take substance (dollar$) over maybes and fear!
    Jun 17, 2015. 06:15 PM | 4 Likes Like |Link to Comment
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