Monday, September 12, 2011


I've been concentrating a lot lately on my tax deferred retirement accounts and decided it was high time I took a close look at my investment plan for my taxable portfolio.  I spent a few hours this afternoon reviewing my holdings and decided to purchase shares in 3 utility companies to round out my account.  I put in an order to buy shares of DUK, AEP and EXC.  All three stocks have dividend yields close to or above 5% which will add nicely to my cash flow.  I've set my account to reinvest dividends automatically in 2 different stocks per month and pay the remaining 6 dividends to my cash account.  In this way I'll be building a nice cash reserve in an FDIC insured, interest paying account and will be increasing my stock holdings at the same time. 

For a while I had been reinvesting all dividends, however, since I've signed up for the savings plan at work and I'm still investing in my own IRA account, with the new plan for my taxable account I'll have tripled my savings contributions per month.  I think that's probably enough.  The great thing about my current investment plan is that it's all automated.  Everything is set so I have to do nothing but sit back and watch the dividends roll in!  Of course I'll still be actively managing my accounts, making sure that my investment choices are still right for my goals, but otherwise there is very little for me to do.  That's the way it should be, something simple that allows you to sleep at night. 

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