curreyr's Comments

I'm An Irrationally Exuberant Investor In Tesla

Thu, 23 May 2013 16:48:13 -0400

'Secret is just two words "yes dear".'
The best name for a boat ever (and yup).

The Dark Side Of Tesla's Masterful Short Squeeze

Thu, 23 May 2013 13:31:34 -0400

Is the market for $100k cars saturated? If so what's going to happen to Daimler (mercedes) or GM (cadillac, corvette) or Toyota (acura) ...

Should You Delay Social Security Benefits?

Thu, 23 May 2013 13:09:43 -0400

I'm retiring at 55! (that's the plan, and so far on target).
Start early, live frugal, eliminate debt, save and invest.
It's so easy a caveman can do it!

Should You Delay Social Security Benefits?

Thu, 23 May 2013 11:35:42 -0400

David,
I am far from facing the decision of when to start collecting SS since I'm only 47.
The tax implications are a consideration I had not contemplated.

It's my goal to have my income requirements met by investments regardless of SS. For that reason, I was intending to collect SS as soon as eligible and simply use it to further boost the portfolio (i.e. I feel I can outperform the performance over the 8 year wait).

I will definitely give it further thought, thanks for the posting.

The Dark Side Of Tesla's Masterful Short Squeeze

Wed, 22 May 2013 16:10:12 -0400

"the other automakers that are building zero emission vehicles will saturate the ZEV credit market."

Which other automakers would that be that will saturate the ZEV credit market?

Why Would I Not Sell Dividend Stocks Even After A 1000% Gain?

Thu, 16 May 2013 19:11:55 -0400

MathRulz, Look at the CCC list and there is a reasonbly represented amount of small and mid cap stocks as well (many are smaller regional banks if I recall)

Kimberly Clark: An Underrated Teacher For Dividend Investors

Wed, 15 May 2013 19:19:53 -0400

" A lot of brokers will reinvest dividends, usually for no charge, but the difference is that company-sponsored DRIPs also allow the participants to invest additional cash, often in amounts as little as $25 or $50, and many charge no fees. "

And many do ... "choose wisely"

The Business Model Of The Dividend Growth Investor

Wed, 15 May 2013 18:32:30 -0400

DVK,

Take a look at BMY.
Over the last 5 years, the price correlates with the dividend $.
EPS, not so much. I'm guessing perhaps this is a case of "expectations".

I'm probably taking half my cap-gain out tomorrow. I'm thinking DE or CSX instead.

The Business Model Of The Dividend Growth Investor

Wed, 15 May 2013 17:24:24 -0400

"The ability to manage a portfolio DEPENDS A GREAT DEAL ON WHETHER THE PORTFOLIO HAS GAINS OR LOSSES. "

How does the portfolio have income losses?
The only reasons I can see are:
a) Income cut/elimination (e.g. dividend cut, bond default, etc)
b) Income effectiveness (e.g. lack of income growth to counter inflation).

The Business Model Of The Dividend Growth Investor

Wed, 15 May 2013 14:07:05 -0400

"By making the objective equal to the strategy success is ensured."
You have it backward, the strategy is to meet the objective.
If an income stream isn't a part of the objective (e.g. wealth for de-accumulation), then it might make sense to have a different strategy.

"* Profits from any source other than dividends don't count."
Of what other sources are you referring to?
Loans (e.g bonds) and real estate (e.g. rentals) come to mind. They can have a place for some (I have a seller financed loan on a property). The fixed rate nature is something I'm hoping to divest of.
If you're referring to "options", that's simply trading in another form.

Procter & Gamble - A Dividend Stock To Hold Forever

Mon, 13 May 2013 19:45:44 -0400

"and you are just not going to get that by buying Kroger brand drier sheets"

Ok, understood, and personally I find that a bit weak.

I do get the "moat" that candy/sweets can have (e.g KO or HSY or MDLZ).

But my detergent? Seriously?

Procter & Gamble - A Dividend Stock To Hold Forever

Mon, 13 May 2013 17:07:31 -0400

The question I have about PG is "what's their moat"?

I understand they have a stellar set of brands that are worldwide, but brands can become a commodity and/or obsoleted.

How Can One Trade Be Both Good For Me And Bad For Me?

Thu, 02 May 2013 15:35:12 -0400

I threw together a quick sheet ..
http://bit.ly/18vMHJ6

The fields highlighted in blue are editable.
If someone finds an error in the calculations, I'll edit it.
(you can also just save a copy for your own use if desired)

Survey Says... These Are Dividend Growth Investors' Most Widely Held Stocks

Thu, 25 Apr 2013 18:49:49 -0400

Paul,

I think it's pretty clear this is an "anecdotal" survey.

Obviously the sample is coming from a selected group size.

Also, as you mention the selection criteria is a bit subjective, but probably due to the sample size and effort expended.

It is what it is, and simply accept the "anecdotal flaws".

I also doubt the author would feel slighted if one desired to take a more scientific/statistically meaningful survey. (In other words, ANYONE could take on THAT effort).

Survey Says... These Are Dividend Growth Investors' Most Widely Held Stocks

Thu, 25 Apr 2013 13:31:29 -0400

I'm a bit surprised that IBM didn't make the tech sector grouping.
I also have QCOM in that grouping.

Both IBM and QCOM make the CCC, but with relatively low yields I can somewhat understand the lack of appeal to others.

Is Dividend Growth Investing Crippling Your Dividend-Based Retirement?

Tue, 23 Apr 2013 17:37:35 -0400

Myer,

I'm curious about what you did during your accumulation phase?
For example, were you contributing to a 401k/Trad.IRA and benefiting from the tax free nature at the time? If so, what marginal bracket was that? (e.g was marginal less than your marginal today?)

The reason I ask (pry?) is that the primary reason for 401k/Trad.IRA contributions is that you can defer todays marginal rate (say 25%) for a withdrawal in retirement of 15%.
Yet if the reality is the withdrawal in retirement is 25%, it's best to pay it upfront rather than later (on the larger pie).

I think that is what your post was intimating, but just wanting to clarify.

Is Dividend Growth Investing Crippling Your Dividend-Based Retirement?

Tue, 23 Apr 2013 16:39:44 -0400

As a few have noted, it takes TIME to appreciate the impact of dividends, especially when your contributions can be capped.

The income produced (tax free) as well as the contributions (taxed or not) into an IRA "supercharge" the compounding effect over TIME.

For example, my Roth has a modest 2% yield, yet that is a 10% greater funds available for investment than the contribution itself.
(note: my Roth is where I hold the <3% yielders with DGR's >10%).

What Stocks Are Most Commonly Held By Dividend Growth Investors?

Wed, 17 Apr 2013 18:32:58 -0400

DVK,

I think what might be of interest is to possibly break it down a bit into "sectors".

I'm working on getting exposure to 2-3 top-notch players in each.
In some, I only hold 1-2 (e.g. "cap. goods"), others I hold 3-4 (e.g. energy with some being MLP).

Consumer staple vs. consumer discretionary always blurs for me (e.g. is KO a "staple" or "discretionary"?)

Is AFL a financial, if so, it's my only ...

What may be of interest to myself and others is to know the top 3-4 of each sector that are found worthy via the "wisdom-of-crowds" (aka group think :( )

What Stocks Are Most Commonly Held By Dividend Growth Investors?

Wed, 17 Apr 2013 18:16:30 -0400

yes to all of the above

What Stocks Are Most Commonly Held By Dividend Growth Investors?

Wed, 17 Apr 2013 16:48:46 -0400

COP (and PSX) probably belong
GIS and AFL seem to be a common omission from your list

IBM (and possibly QCOM) in tech?

A few other likely suspects ...
BMY and JCI

What Do You Need To Do Before The Next Market Meltdown?

Wed, 03 Apr 2013 21:11:21 -0400

Dave,

"My math teacher wife won't do a spreadsheet for me."

What? Cmon is she just lazy?
I'm just kidding! All teachers have my full respect and are very under appreciated/rewarded.

My bachelors in math+stats and a masters in computer science means some things are easier for me .

What Do You Need To Do Before The Next Market Meltdown?

Wed, 03 Apr 2013 20:36:52 -0400

I let my google spreadsheet do it ...

=power ( ( (C$1*B3) + H3) / (G3) , 360 /days360 (A3, today() ) ) - 1

C$1 is current price ... =googlefinance( , "price")
A3 is the date of purchase
B3 is share count on date of purchase
H3 is the dividends B3 shares have returned (but not previous shares)
G3 is the cost to acquire B3 shares

I have a row for each purchase (e.g. DRIP or otherwise).
I also have a column that weights each "annualized return" via the B3 over total share count.

So, last weeks DRIP could have an annualized return(loss) of 100%, but weighted only results in a .1% to the total annualized return(loss).

When I sum the weighted annualized numbers, I have a representative "total return".

One thing I can notice is a trend of is the annualized return(loss) of accumulating investments individually.
For example, 100 shares 2-3 years ago can be compared to 1 share 1 year ago.

Why 401(K) Plans Don't Work In This Market

Wed, 03 Apr 2013 18:54:59 -0400

Diver Dave,
You are assuming that you'll only be at lower marginal bracket.
Honestly, my "comfortable" retirement is likely to be ONLY at 25% marginal.

Why 401(K) Plans Don't Work In This Market

Wed, 03 Apr 2013 18:35:58 -0400

Spangler,

I would add that an individual investor ALSO answer those three questions, as well as keep "minutes" (personal notebook or "instablog" or ...)

so,
What's the Spangler "Investment Policy Statement"?

When was the "last time the plan trustees met to review the performance of plan investment options"?

Have you evaluated the "overall plan costs by category and when was the last time this information was reviewed"?

You can keep the minutes private if you wish ;)

Your comment has me thinking that I personally need to do the same evaluation/review as well as keep personal "minutes" that can be referenced.

Dividend Growth Investing And The Reluctant Spouse

Wed, 03 Apr 2013 17:36:35 -0400

My wife and I structure "our" personal financial matters much like a business.

We separate the responsibilities of payables and receivables. IMO, it's a mistake to have both be a single person for a family or a business (aka you spent what! on what?).

We have a "board" that also involves another non-resident family member. This serves as an independent voice (which over her lifetime has amassed a 7 figure net worth).

Myself as the "receivables" one, can focus on maximizing our income.
My wife as the "payables" one, can focus on minimizing our expenses.
Our "board" has informal meetings, but the inflow/outflow equation becomes well understood by all.

We currently have a FCF of nearly 50%! I'm not a CPA, but I simply calculate as (income-expenses)/income.
That "excess" is deployed via:
50% to investments (savings, IRA's, brokerage)
30% to capital improvements (remodeling, vehicle replacement, etc)
10% to debt servicing (our only remaining debt is long term to our "board" member)
10% to "fun" (vacations, bobbles, etc)

Don't Become The Biggest ETF Loser

Tue, 02 Apr 2013 20:17:54 -0400

giorgiolb, et al

My initial comment was to add yet another data series in.

In other words don't get "suckered" by speak that the "front load will be absorbed by gains after 3-5 years".

Dividend Stocks With Prices Way Too Far Ahead Of Themselves

Tue, 02 Apr 2013 17:03:21 -0400

I also agree that the "alerting" mechanism is worthy.
I also think it may be a lagging indicator which for me is somewhat less worthy.

The Facts Are In - MLPs Work Great In IRAs

Mon, 01 Apr 2013 19:56:14 -0400

I held KMP (only 20 shares) in my Roth for about 18 months before an exit last fall.

The UTBI has never been positive, but because of the sale last year, the supplemental is showing a $400 "ordinary gain".

I'll be ensuring my custodian properly files this!

Obviously it's less than the $1000 (and why I decided to exit in that account), but I want to ENSURE the custodian properly files so that the IRS doesn't decide in the future to penalize my IRA for failure and/or improper reporting.

It is completely irresponsible to assume that failure and/or improper reporting by your custodian will somehow become THEIR issue.

The IRS will simply go after the IRA for the penalties, and the custodian is going to let them.

You as the beneficiary of the IRA might have legal recourse against the custodian, but good luck with that.

Don't Become The Biggest ETF Loser

Mon, 01 Apr 2013 19:21:22 -0400

Adam,

Another data series to consider might be front load "funds" (with $0 trade costs within the "family"). Say a front load of 4.5% ...

The question would be: What is that performance after the 10 year period?

(The initial 10 year period I think is most relevant since that is likely to represent the "early" years).

Facebook Home For Android Leaked: What You Need To Know

Mon, 01 Apr 2013 18:40:15 -0400

Facebook is "One Hacker Way".
AAPL is "One Infinite Loop".
MSFT is "One Microsoft Way".

I'm guessing that "One Stupid Market Tier" was taken.