OPENED ROTH IRA WITH PURCHASE OF GGT SHARES

Accomplished another goal from my 2016 investment plan by opening a ROTH IRA account.  I placed my first order to go through on May 17th to purchase shares of The Gabelli Multimedia Trust Inc. (GGT:NYSE).  GGT pays a quarterly dividend with an annual yield of 12.09%.  My goal with the ROTH is to build a high yield portfolio and GGT seemed like a good place to start.  I'm going after big dividends with this account since earnings and capital gains from ROTH IRAs are non-taxable.  I'll be making the majority of my stock purchases for this account for the remainder of 2016 to build a stream of tax free income for my retirement.  I'll still be making contributions to my regular IRA until I max out the tax benefits, then everything else goes in to the ROTH account.

Another great feature about the ROTH IRA is that you can withdraw contributions at any time for any reason without a tax penalty.  These are after tax dollars, so you don't get an up front deduction, but I think the tax free income makes it well worthwhile.  

GGT's dividend will kick in in June of this year, boosting monthly dividend income by 4.5%!  That is a nice increase in monthly cash flow, but it's even better when you consider it's tax free income!  I'm pretty excited about this new account, even with the big drop in the stock market today.  As I've said before, when you invest to build dividend income instead of trading stocks for gains, you don't have to be as concerned about day to day fluctuations in the stock market.  I rode out the 2008 market crash and slept well each night knowing my dividends would just keep rolling in.  I even took advantage of the down market to buy more shares and it really paid off as the market recovered.  So I'm looking at any pull back in the stock market now as an opportunity to build the tax free income portion of my portfolio through buying stocks for the ROTH account.