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  • Safety, Stability And High Income For The Retired Dividend Growth Investor [View article]
    For an all-Roth investment:

    > inflation at 3%, the account value never decreases
    > inflation at 5%, the account value starts decreasing in year 25 and is exhausted in year 43.

    My spreadsheet will model many possible scenarios. I suggest if you are interested that you PM your email address to me and I will send the spreadsheet. Offer open to everyone.
    Apr 8 02:57 PM | Likes Like |Link to Comment
  • Is It Safe? Leveraged Fund Of (Closed-End) Funds Is Paying 18% [View article]
    II,

    >I presume UBS will increase the financing rate in line with the market ...

    The finance rate is based on 3 month LIBOR.
    Apr 8 02:46 PM | 1 Like Like |Link to Comment
  • Safety, Stability And High Income For The Retired Dividend Growth Investor [View article]
    extremebanker,
    6228371,

    I thought this sounded too good to be true so I modeled your scenario on a spreadsheet. Assumptions:

    > $1M initial investment.
    > Yield fixed at 6%.
    > All investment income taxed at 25% tax rate.
    > First year amount spent = $30,000
    > First year tax = $15,000
    > Spending does not include tax payment; taxes paid from net after spending.
    > First year amount reinvested = $15,000
    > Amounts reinvested earn the same yield as the original investment.
    > Amount spent increases by 3% per year.

    The year end account value increases annually until year 21; however, the rate of increase decelerates continually. That year and thereafter the account value decreases as spending exceeds after-tax yield at an increasing rate. The account is exhausted in year 48.

    If we assume 5% inflation instead of 3%, the account value increases annually until year 12, and the account is exhausted in year 33.

    There is a certain amount of unreality to this. The yield on the reinvestment is unlikely to be the same as that for the original investment. The tax rate could vary. However, I think this is a reasonable demonstration that inflation will get you in the end if you rely on fixed income.
    Apr 8 02:28 PM | Likes Like |Link to Comment
  • Retirement Strategy: The Active Manager Takes Action, While The Passive Manager Remains Passive [View article]
    RAI always pops up as the top tobacco performer when I check the same stats. You would never know it from articles / commentary on SA.

    The latest pop is due to rumors about RAI possibly buying LO.
    Apr 7 09:11 PM | Likes Like |Link to Comment
  • BDCs And The Russell Indices [View article]
    I have 3 in mind - TCPC at 15, HTGC at 13, and BDCL at 25.

    I will consider selling half my PSEC to fund part of this. I view PSEC as relatively speculative compared to HTGC, GBDC, and TCPC.
    Apr 7 05:00 PM | Likes Like |Link to Comment
  • BDCs And The Russell Indices [View article]
    Interesting idea.
    Apr 7 04:14 PM | Likes Like |Link to Comment
  • Retirement Strategy: The Active Manager Takes Action, While The Passive Manager Remains Passive [View article]
    RS,

    I hope for both our sakes that you are correct.
    Apr 7 12:39 PM | 1 Like Like |Link to Comment
  • A Kinder Morgan Merger Is Not Feasible [View article]
    >pompous

    How about 'presumptuous'.
    Apr 7 12:30 PM | 1 Like Like |Link to Comment
  • A Kinder Morgan Merger Is Not Feasible [View article]
    JGMTD,

    >KMP unit-holders -- since KMP is a MLP, not a corporation -- have very little voting rights

    That is an understatement. Limited partners in an MLP have ZERO voting rights.
    Apr 7 12:28 PM | 3 Likes Like |Link to Comment
  • Periodic Table Of Dividend Champions [View article]
    nkemp,

    I tried that but it didn't work. Instead of finding the data point, Excel emitted its error 'ping'. What version of Excel do you use? I'm on 2010.
    Apr 7 11:46 AM | Likes Like |Link to Comment
  • How To Identify Good Stocks, Part 1 [View article]
    At one time I was interested in ETN, but then they changed their domicile to Ireland. The dividend tax charged by Ireland cannot be recovered in an IRA, and can only be recovered for regular accounts in your income tax refund for the next year. Together those were a turnoff for me.

    http://bit.ly/Zni1qn
    Apr 6 02:10 PM | 1 Like Like |Link to Comment
  • Periodic Table Of Dividend Champions [View article]
    According to this article, adding a label to data points in an Excel scatter plot can only be done with a VBA macro: http://bit.ly/1ej4EOG
    Apr 6 11:55 AM | Likes Like |Link to Comment
  • Periodic Table Of Dividend Champions [View article]
    Thanks Smarty.

    Hovering over a data point in excel displays the x-y coordinates. Open Office sounds a bit more useful.

    I hope someone among our readers with deep experience in Excel knows how to do this. The scatter plot is the best method I have ever seen for making a visual representation of the CCC lists. A way to label each point with its symbol would be the icing on the cake.
    Apr 6 11:45 AM | Likes Like |Link to Comment
  • Retirement Strategy: The Active Manager Takes Action, While The Passive Manager Remains Passive [View article]
    RS,

    To the extent that e-cigarettes and vaping cannibalize cigarettes, tobacco company revenues, and profits, will fall.
    Apr 6 11:04 AM | Likes Like |Link to Comment
  • Altria Is In Buying Zone With High Visibility On Cash Distribution [View article]
    As is fast food.
    Apr 6 04:30 AM | 2 Likes Like |Link to Comment
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