Wednesday, June 1, 2016


The month of June 2016 is off to a good start, with 5 dividend payments on the first day of the month!  Also saw a 30% increase in monthly dividend income from NCZ, due to the most recent purchase of additional shares.  Purchasing more shares through reinvested dividends and collecting a nice chunk of cash is a great way to start off the month!  I expect to see new dividend income from GGT and GUT kick in on the 23rd of this month, followed by a jump in income from PHK in the month of July, from my most recent share purchases.

I'm in the process of diverting dividend income from my taxable account to cash, which I plan on transferring to my ROTH IRA to build tax free income as rapidly as possible.  I've noticed from the slew of annual reports I've been reading, a lot of the high yield mutual funds rely quite heavily on REIT's and financial stocks (banks and insurance companies), as well as utilities, which should all benefit from the low interest rate environment.  These type of funds, along with high yield stocks seem like the perfect fit for an account where capital gains and income are non-taxable.  So I'll be looking to load up my new ROTH account with those.

So basically for the remainder of 2016, I'll only add enough cash to my IRA to get the maximum tax deduction.  I won't be contributing any additional cash out of pocket to my taxable account, although it should continue to grow through reinvested dividends.  I'll be transferring whatever cash I collect from dividends in my taxable account to the ROTH account.  Any additional cash contributions on my part will all go to the ROTH account, with the goal of building a stream of tax free income as rapidly as possible.

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