Anyone want to talk stocks and retirement?

[JaxRed]

I'm a major proponent of doing the Dividend Growth investing within an IRA. So the dividend tax increase won't affect me directly..

But a declining market (as last week was) and maybe in the next few weeks does not affect my investing portfolio. My goal is to have a consistent dividend stream. A down market does not affect that dividend stream.

[BuckeyeRed27]

Originally Posted by JaxRed

I'm a major proponent of doing the Dividend Growth investing within an IRA. So the dividend tax increase won't affect me directly..

But a declining market (as last week was) and maybe in the next few weeks does not affect my investing portfolio. My goal is to have a consistent dividend stream. A down market does not affect that dividend stream.

It could eventually. That dividend is a function of the underlying stock price.

I think people are buying dividend stocks due to low yields in less risky investments. That's fine for now but I think will create a small bubble that will correct in a year or two when rates come up.

I don't see the French or rest of the EU stuff having a major impact on our market. Possible short term news pullback but nothing prolonged. If anything it will create a nice buying opportunity.

[bucksfan2]

Originally Posted by lidspinner

Guys, I've gotten more from here than I've gotten from 3 months on financial sites....

I was thinking about this the other day. Some of my most valuable advice has come from smart people. People who have success in the market and know what they are talking about. Im not talking about the Warren Buffets of the world, but maybe the people in charge of your 401K, friends who have done well in the market, etc. They are the people who have been through the ups and downs of a market and can look back in hindsight and tell you what they did or what they should have done. There is invaluable advice you can get from those types of people.

As for France and Greece it will create some noise over here in the US. At the end of the day I still think the Euro continues down the same path. It probably will drive the US market down but will also create a buying opportunity.

[JaxRed]

Just got a Dividend raise of 7.1% from Intel !!

[kaldaniels]

Tip of the hat to all on here for some good advice, especially Medford with a nice post on page 2.

[foxfire123]

Question, if you don't mind me hijacking the tread a bit.

What kind of long term capital gains taxes can I expect on a sale of stock purchased for about $1380, with a net gain of about $4180. 15% tax bracket (thank goodness for being poor! lol!)

[kaldaniels]

Originally Posted by foxfire123

Question, if you don't mind me hijacking the tread a bit.

What kind of long term capital gains taxes can I expect on a sale of stock purchased for about $1380, with a net gain of about $4180. 15% tax bracket (thank goodness for being poor! lol!)

I'm gonna dive in here possibly over my head, but I believe it would simply be 15% of your profit, which is $627. Correct me if I'm wrong, but everyone pays 15 percent on long term capital gains (in your example you would have had to own the stock for over 1 year), no?

[kaldaniels]

Any predictions on the Facebook IPO? Not that any of us can get in on it early...unless oneupper has a connection?

[bucksfan2]

Originally Posted by kaldaniels

I'm gonna dive in here possibly over my head, but I believe it would simply be 15% of your profit, which is $627. Correct me if I'm wrong, but everyone pays 15 percent on long term capital gains (in your example you would have had to own the stock for over 1 year), no?

As long as everything is long term I think its just 15%. If you have any dogs you may be able to off set some capital gains with losses.

As for Facebook I may davel in it. Its the hottest IPO in recent history and I have a feeling its going up for a while. Its one of those things that I can buy at a discount brokerage where you can get in and out fairly quick. If I do anything it will be a pure trade instead of an investment.

[oneupper]

Originally Posted by kaldaniels

Any predictions on the Facebook IPO? Not that any of us can get in on it early...unless oneupper has a connection?

E*Trade is actually in on the deal and offering to clients. I put in an order for the wife's IRA. (She uses it more than I do. LOL).
I thought Schwab, TD Ameritrade, etc were going to get an allotment, too,

The main guys are Morgan Stanley, Goldman, JPM, Merrill and Barclays. So if you have an account with them you can certainly ask.


Found this list..
Underwriters for Facebook's IPO


-- Morgan Stanley & Co.

-- J.P. Morgan Securities

-- Goldman Sachs Group

-- Merrill Lynch

-- Barclays Capital Inc.

-- Allen & Co.

-- Citigroup Global Markets Inc.

-- Credit Suisse Securities (USA)

-- Deutsche Bank Securities Inc.

-- RBC Capital Markets

-- Wells Fargo Securities

-- Blaylock Robert Van

-- BMO Capital Markets Corp.

-- C.L. King & Associates Inc.

-- Cabrera Capital Markets

-- CastleOak Securities

-- Cowen and Co.

-- E-Trade Securities

-- Itaú BBA USA Securities Inc.

-- Lazard Capital Markets

-- Lebenthal & Co.

-- Loop Capital Markets

-- M.R. Beal & Co.

-- Macquarie Capital (USA) Inc.

-- Muriel Siebert & Co. Inc.

-- Oppenheimer & Co. Inc.

-- Pacific Crest Securities

-- Piper Jaffray & Co.

-- Raymond James & Associates Inc.

-- Samuel A. Ramirez & Co. Inc.

-- Stifel, Nicolaus & Co. Inc.

-- Williams Capital Group

-- William Blair & Co.


In any case, it won't be cheap. It's supposed to price between 28 and 35. I'm hoping lower and that my wife actually gets some.

[oneupper]

Originally Posted by bucksfan2

As for Facebook I may davel in it. Its the hottest IPO in recent history and I have a feeling its going up for a while. Its one of those things that I can buy at a discount brokerage where you can get in and out fairly quick. If I do anything it will be a pure trade instead of an investment.

[JaxRed]

Let me say as a proponent of Dividend Growth Investment, I would have absolutely no interest in Facebook. It doesn't fit in with my investment philosophy.

I also think it's pretty much "gambling". It's a "hot" commodity. 2 years from now people might be saying that they are so lucky they got in at the ground floor, or they might be saying they can't believe they bought at the top of the bubble.

[JaxRed]

I debated whether to post this, because I don't want it to be taken badly by anyone, but here goes......

I'm just about at retirement so what I'm doing with my stock investments is to provide an income stream to supplement my retirement without touching the principal. So I'm consolidating/moving IRA's etc into a IRA Brokerage account. Not done yet, and started 6 weeks ago.

But yesterday we got our first dividends. About $850. We are on pace for about $1000 a month. The point is, following a dividend strategy can provide a very nice supplement to your retirement income without pulling any money out.

[gonelong]

Originally Posted by JaxRed

I debated whether to post this, because I don't want it to be taken badly by anyone, but here goes......

I'm just about at retirement so what I'm doing with my stock investments is to provide an income stream to supplement my retirement without touching the principal. So I'm consolidating/moving IRA's etc into a IRA Brokerage account. Not done yet, and started 6 weeks ago.

But yesterday we got our first dividends. About $850. We are on pace for about $1000 a month. The point is, following a dividend strategy can provide a very nice supplement to your retirement income without pulling any money out.

That's my plan as well. Amass a tidy sum invested in stock with a history of dividend growth and hopefully never touch the original investments.

My plan is in place and in progress. In concert with my plan is to continue to provide my son with an understanding of financial matters. He turns 9 in September, I am thinking about buying him a dividend paying stock so he can get a look into how those work. $500 now might be worth $800-$1000 by college time, but it will be worth more as a learning tool IMO.

[OFF TOPIC RANT]
My wife's sister is in a perpetual state of finanical crisis ... almost all of it completely and utterly self inflicted. It's no way to live life IMO. Take what you have and make it work for you as best you can. I didn't get a financial education either, I sought it out myself after being tired of always being behind the 8-ball financially. I am determined to pass these things along to my son.

If I can manage to live soley of dividends when I retire then I can pass the original investment to my offspring. That is how you begin generational wealth and I hope I am able to get that started for my family tree.

In order to keep it rolling your kids need to understand it. I have been working on financial concepts with my son, who is now 8. He *earns* an allowance, but only if he completes his assigned tasks for the week. He has to save at least 25% (sometimes he saves more voluntarily). When he deposits his savings into the credit union, I match the total. He has built up a nice little sum.

He understands that by saving his money it allows the bank to loan it to his neighbor to build a house, buy a car, or start a business. That person pays the money back, with interest. The bank gives him some of the interest and keeps the rest as profit. [ok, that's a bit flowery, but close enough]

Recently we took a look at his bank statement and I showed him how his interest payments had been increasing over time and asked why he thought that might be. "My interest is making interest now?". BINGO! A few words about compound interest over time and he has the concept.

He is allowed to spend 50-75% of his earned allowance on pretty much whatever he wants. The occasional ice cream cone, toys, video games, etc. He has occasionally bought some junk - and realized that a fool and his money are soon parted. He now understands how advertising works and he often seeks Mom and Dad's council before he makes a purchase. He has also saved for larger ticket items, sometimes eschewing short-term wants in favor of his long-term goal (though not always). I think he is well on his way, and is light years ahead of where I was at his age.

I learned many of these financial lessons in earnest between the ages of 26-30, more often than not the hard way.

[/OFF TOPIC RANT]

GL

[bucksfan2]

Originally Posted by JaxRed

I debated whether to post this, because I don't want it to be taken badly by anyone, but here goes......

I'm just about at retirement so what I'm doing with my stock investments is to provide an income stream to supplement my retirement without touching the principal. So I'm consolidating/moving IRA's etc into a IRA Brokerage account. Not done yet, and started 6 weeks ago.

But yesterday we got our first dividends. About $850. We are on pace for about $1000 a month. The point is, following a dividend strategy can provide a very nice supplement to your retirement income without pulling any money out.

Nice. Your an old fart though . Thats eventually my plan but I have a long time until then.

Just recently I have been lightening up on some of my stocks that have had a nice run and didn't really have any dividend protection. This Greece situation isn't going away anytime soon and we have seen the same thing happen the past two summers where the Greeks (and other Europeans) begin to act up.

I have a few dividend paying stocks picked out and ready to go if the market takes a little dip here.