Thursday, July 28, 2016

LATEST ADDITION TO MY EGYPTIAN COLLECTION

I'm a big fan of flea markets and thrift stores.  Today I had an enjoyable afternoon at the Midway Flea Market west of Columbia, Mo.  Found another dinner plate for my set of Corelle Impressions dinnerware, a great Starbucks coffee mug with the mermaid logo laser cut on the side and an Anubis statue for my Egyptian collection.  I was just thinking a few days ago that I only had a very tiny Anubis in my collection and I should find a better one.  Low and behold, here it is!


Went flea marketing with a friend and had dinner at Cici's Pizza on the way home.  Was very pleased with my finds, but I'm most happy to have had such a great time and I only spent $30 including dinner.
  

Tuesday, July 26, 2016

ADDED NEW STREAM OF INCOME WITH PURCHASE OF IGD

Today's purchase of IGD shares will add an additional 12 dividend payments per year to my Roth IRA account.  This brings the total number of "dividend paydays" up to 276 per year, or a dividend every 1.322 days!  It would be simple to get from here to 365 dividends per year, meaning a "dividend payday" every day of the year.  I've decided to make this the main goal of my investment plan for 2017.  

Although I've made my first share purchases for my new 401 k account, I won't have any details on the number of dividends or income amounts these two funds will add to my overall investments until I receive my first statement.  I'm pretty excited about this account though, since deposit witholdings from my paycheck have had no significant impact on my net income.  Since contributions are taken out on a before tax basis, I'm basically building this account with money I would not otherwise have access to.

If I were to count payments from interest bearing accounts and paydays from work, I am already close to getting paid every day of the year.  However, my goal is to collect a dividend payment for every day, with any earned income or interest income being icing on the cake.  Yesterday's drop in the stock market has me thinking I may have been correct to withold dividend reinvestment at recent lofty prices.  I'm anxious to see how much stock prices will drop and am looking forward to picking up some bargains should it occur.  If there is a substantial pullback in stock prices, I will definitely go back to reinvesting all dividends.

Thursday, July 21, 2016

INCREASING MONTHLY DIVIDEND INCOME OVER 2% WITH PURCHASE OF IGD!

Just placed an order to purchase a stake in IGD a monthly dividend paying fund with a current yield of 12.92%.  This purchase will increase monthly income from dividends by over 2%, not to mention I'll get back a portion of the fees charged by the fund since shares of Voya are owned by one of my other funds.  Voya Global Equity Dividend and Premium Opportunity Fund (IGD:NYSE) will add an extra stream of income to my Roth account in addition to increasing overall monthly cash flow.  My next purchase for my Roth account will be additional shares of SPHD.  I started my account off with some high yield monthly and quarterly dividend funds and am eager to add the more stable SPHD for additional monthly income as well as long term growth prospects.

The only other new purchase I have planned for this year is Wells Fargo's EAD fund for my IRA account.  Any other purchases will be directed toward increasing current holdings.  Like I mentioned in my last post, I'm expecting a market correction sometime in the near future and am concentrating on building cash to take advantage of opportunities should this occur.  However, this does not mean I plan on hoarding cash.  I've had such a great year of increases in monthly cash flow, I want to keep the momentum going.  So to accomplish this, I will be adding additional cash purchases to my investments for the rest of 2016.

Wednesday, July 20, 2016

A SPECIAL THANKS TO MY VISITORS FROM BRAZIL!

Just wanted to say Thank You to my many recent visitors from Brazil, the one country I'd most like to visit outside of the U.S..  I'm looking forward to the upcoming Brazil Olympic Games!

BUILDING CASH IN PREPARATION FOR STOCK MARKET CORRECTION

The stock market has been on a roll lately and sometimes when this happens, it's easy to forget that this will not always be the case.  Eventually we'll be faced with another correction.  When will it happen and how severe will it be?  I have no way of knowing, but in my experience, it's sure to happen.  Given that the bull market is already a bit long in the tooth, I'm thinking it will be sooner than later.  I read an interesting article today which pointed out that historically, there was a slump in the market for the first year or two after every U.S. presidential election.  This was regardless of which party won the presidency.  So while I'm a big believer in re-investing dividends, with the prices being so high right now and a possible correction looming in the not to distant future, I believe it would be prudent to put build up the cash portion of my portfolio.  This will allow me to take advantage of bargain prices when the stock market drops.  While I won't earn a significant amount of interest on the cash, I will earn some and it will help insulate my investments from a correction.

While I had already diverted dividends to cash because of the run up in stock prices, I'd planned on doing this only on a short term basis.  Now I might be looking at several months, or even a year or more.  I'll miss out on some compounding from reinvesting the dividends, but I think I'll more than make up for it by getting better prices on the future stock purchases.  This does not mean that I won't be buying any stocks at all.  I've got my 401k kicking in at work and I'll be making purchases for my IRA and my Roth accounts.  Cash investments will keep dividend income growing and dividend payouts will build up the cash portion of my portfolio.  Of course I guess I could just save the cash and keep reinvesting dividends, but I think I'll stick with what I've already set up.  Time will tell whether this was a wise choice or not.

Monday, July 18, 2016

WHEN PROFITS ARE SLIPPING AND EXECUTIVES WANT RAISES, SELL!

If you're invested in a company who's profits are dwindling, maybe they've cut the dividend and the company executives are giving themselves raises, it's time to SELL, SELL, SELL!  While slipping profits are enough to consider selling, it may just be a temporary setback, so you'd want to check it out and see what's causing the problem and decide whether you think they might make a comeback.  However, if profits fall and/or you've seen a cut in dividends and the company wants you to vote on executive compensation, better to just cut you're losses and get out of the investment, because they obviously don't have investors best interests at heart.  If they did, they would not be asking for a raise when they're doing a poor job of running the company.

While this might seem obvious, I've seen executive compensation plans approved time and again while companies are under performing.  To be honest, it makes me very angry as a shareholder that they would even ask for a raise when they're losing money for shareholders.  It's downright insulting when they do so after cutting dividend payouts.  I don't waste my time with it anymore, I show my disapproval by selling my shares and putting the money to work elsewhere.

Friday, July 15, 2016

EXTRA CASH FOR INVESTING FROM COUPONING!

I haven't written about couponing in quite some time, which doesn't mean that I'm no longer using coupons.  On the contrary, I'm a firm believer in saving money on daily purchases to free up cash for saving and investing.  Just got back from my weekly grocery shopping, where I saved over 31% on my groceries with my customer loyalty card and digital coupons.  I don't get the big savings like the extreme couponers, but I routinely save anywhere from 25 to 40% or more by matching up coupons with sale items that I would normally buy anyway.  I do not buy items simply because there is a coupon or sale, but if it's something I buy on a regular basis, then it just makes sense to get the best price.  With the little effort I put in, I manage to keep my grocery budget for one person to $20 or less per week.  

On this trip alone, I saved a total of $7.86.  Sometimes I save more, sometimes less, but assuming an average of $7 per week, that adds up to $364 per year!  That's not a tremendous amount, but I'm only a single person household.  A family of 4 could easily save $1,456 a year or more!  No matter what I save, every little bit helps toward reducing debt and building my investments.  I rarely ever clip paper coupons anymore.  I'm saving this amount using digital coupons from my grocery store's website.  So if you're one of those people who think coupons aren't worth messing with, maybe you should give them a second look.