Wednesday, March 22, 2017

I COULD WITHDRAW 5% OF MY TOTAL INVESTMENTS PER YEAR AND NEVER RUN OUT OF MONEY!

If you're like me, you've probably read articles by investment experts saying you should draw anywhere from 2% to 4% per year of your total investments during retirement to make your money last.  I was thinking about this over my morning coffee and did some quick calculations in my head and figured out, with my dividend investments, I could draw 5% a year of the total value of my investments and never run out of money!  The reason being is that 5% of my total investments is only 70% of my annual dividend income.  Which means that not only would I never run out of money but, by reinvesting the 30% of dividends, I can continue to grow my dividend income in retirement with no money out of pocket! 

The real kicker is, I could start taking the 5% right now, if I wanted or needed to.  Of course I have no intention of doing so, because I'd rather grow my income as much as possible while I'm still working.  I also plan on drawing only from my taxable account and my ROTH IRA initially, allowing my 401k to and my IRA to continue to grow until I have to start taking payments from them.  

Friday, March 17, 2017

EXPECTING ANOTHER HUGE GAIN IN DIVIDEND INCOME IN MARCH!

Saw great gains in year over year dividend income in January and February and it looks like March is set to follow the trend!  By mid month, I've already received dividends equal to the entire month's income from 2016!  With 18 more dividend payments this month, it's a pretty safe bet it will trounce March 2016 earnings by a substantial amount.  Since most of the remaining dividends for this month are also the highest paying, it wouldn't surprise me at all to see earnings increase by over 100%!  Which also means that I'm well on my way to doubling dividend income again this year!  

While all this would be exciting enough, I'm also happy to report I'll be able to increase total portfolio value by 20% by the end of April 2017!  The cash to accomplish this is coming from my tax refund and a bonus from work.  Between the two lump sum investments, they should increase monthly dividend income by over 10%!  It's looking like it's going to be another good year.

IT'S TAX TIME, DO YOU KNOW WHERE YOUR REFUND IS GOING?

If you're expecting a tax refund this year, have you decided where to spend the money?  Some people use it to pay bills, some buy a new car or other frills, I'm all for buying myself a raise.  No, I don't mean I'm bribing my boss to give me a raise, I mean I'm investing my tax money in dividend stocks to give myself a raise in monthly dividend income.

I'm happy to report my tax strategy worked out well and reduced my taxable income to the point I owed $0 in federal income taxes.  This, in spite of the fact my earned income increased dramatically in 2016.  Finalized and filed my tax return last week and have already put in the order to purchase shares which will boost monthly cash flow from dividends by a little over 5%!  Nice little raise and I'd be quite happy with that, but I also figured out how to boost dividend income another 5% per month in April by investing an unexpected bonus from work!

SOLD JMP, BOUGHT GAIN FOR A 25% INCREASE IN MONTHLY DIVIDENDS!

While preparing my taxes, I realized I could simplify next year's return by selling my stake in JMP (a limited partnership) in my taxable account.  Not wanting to lose the monthly dividends, I decided to reinvest the money in GAIN.  Not only will this make future taxes easier to prepare, but it locked in a small gain on JMP and increased monthly earnings on this cash investment by 25%!  Tax time is a great time for fine tuning your portfolio!

Tuesday, February 28, 2017

FEBRUARY DIVIDEND INCOME UP OVER 100%!

Just collected the final 13 dividend payments for February 2017, for an increase in monthly dividend income of well over 100% compared to February 2016!  If this trend continues, I should have no problem reaching my goal of doubling dividend income again this year.  

How long the Trump rally will continue is anybody's guess, but it's been great for the overall value of my portfolio.  That being said, I'm thinking things will eventually turn and we'll see some downward motion before the end of the year.  With that in mind, I'm currently diverting some dividend income to cash to take advantage of any bargains that may present themselves later in the year.  If I'm wrong and the rally continues, I figure it never hurts to have a pile of cash.

Should collect a check from SendEarnings in March as well as my second cash payment from Swagbucks.  I'll be investing both payments to boost monthly dividends.  While I'm already collecting 372 dividend payments per year, exceeding my goal of a dividend per day, I am thinking about buying shares in another monthly paying fund and a couple of individual stocks.  Probably won't happen in March, but I do have an upcoming bonus from work in April for winning Employee of the Year.  Definitely investing the bonus, just haven't decided how to deploy the windfall as yet.  I'm leaning toward purchasing more shares of quality 5 star funds SPHD and SPLV.  This wouldn't be a big increase to monthly income but it would improve future growth prospects.  On the other hand, if I invested the money in some of the cash cow funds, I'd have more monthly income to put toward purchasing quality shares.  Maybe I'll do both and put half in cash cow stocks and the other half in one of the funds.

February has been another great month overall, so I'm looking forward to what March has in store.  It will be great to kick off the month with another great batch of dividend payments tomorrow!

Tuesday, February 14, 2017

AOD PURCHASE INCREASES MONTHLY INCOME ANOTHER 2%!

Just completed purchase of AOD shares for my ROTH account, increasing monthly dividend income 2% on top of the 3% increase with the purchase of NCV!  AOD pays a monthly dividend of $0.058 per share for a yield of 8.38% on their current price.  Looks like I got in early enough to collect the dividend this month.  This purchase increases total number of dividend payments per year to 372, guaranteeing I'll be paid a dividend for every day of 2017!  Off to a good start on doubling dividend income again this year!

Been doing a lot of projections of retirement income and although it's looking much better than a few years ago, I'm thinking about ways to improve things even more.  Originally I had planned to stop working at my earliest Social Security retirement age of 62, but now I'm thinking I'll draw my Social Security and keep working another year or two, as long as my health allows.  By continuing to work and living off earned income, I could invest my Social Security checks each month to dramatically increase dividend income in just a couple of years.  

Tuesday, February 7, 2017

NCV PURCHASE INCREASES MONTHLY DIVIDEND INCOME 3%!

Completed purchase of stake in bond fund NCV, raising monthly dividend income by 3%!  NCV pays a monthly dividend of .065 cents per share for a yield of 11.45% on their price of $6.83.  This is strictly a cash cow purchase and falls into, what I consider, the high risk category of my portfolio.  I'll be collecting the dividends from NCV in cash.  

Diverted more cash from my taxable account to non-taxable ROTH.  Don't want my taxable portfolio to increase too rapidly, although it has been going up in value with the Trump rally.  So I've been collecting a portion of dividends in cash, mostly from the bond funds and transferring the cash to tax free account.  Trying to keep taxable income down and increase non-taxable income as rapidly as possible.

Used my first cash earnings from Swagbucks (see link on right) to help pay for this stock purchase.  While I had to pay the majority with cash out of pocket, it's nice to know that I've put the free money from Swagbucks to work earning more cash each month.  I've decided to use all cash earned from Swagbucks to boost my ROTH account.  Will have a check coming in March from Sendearnings which will also be added to investments. 

 Family and friends think I'm crazy for "wasting my time" earning small amounts of cash from these sights, but why is it crazy to earn money instead of frittering away time on facebook?  I like facebook, I've spent endless hours on facebook, like a lot of other people, but they've never paid me any money.  So they can think whatever they want and I'll just keep making money.