Friday, September 2, 2016


While making out my stock purchase plan for the remainder of this year and for 2017, I noticed that I was collecting well over 50% of all my dividends from my taxable account.  In line with my current strategy of reducing taxes I looked for and found a way to cut taxable income and increase monthly cash flow at the same time.

This is how I did it:  I sold half my shares of AOD at a small loss, which will help offset the gains from the sale of DON and cut my taxes for 2016.  The money I received from the sale will be transferred to my Roth IRA and used to purchase a stake in CHI.  CHI pays a monthly dividend, replacing the number of payments lost from the sale of DON.  It's dividend is also higher than AOD, so I'll gain a 1% increase in overall dividends starting in October of this year.  This will also reduce taxable income in my regular investment account and increase non-taxable income from the Roth IRA.

Along with yesterday's transactions, I've managed to increase monthly cash flow by 6%, while reducing taxes, with no additional cash out of pocket.  This has worked out so well, I'll definitely be looking for more ways to fine tune my total investment portfolio.

I'm still of the opinion that we will see a market correction within the next 6 months, so I'll continue to boost cash positions by collecting some dividend payments in cash and boosting personal savings. 

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