Anyone want to talk stocks and retirement?

[medford]

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.

I'm not sure why anyone would object or take that badly. I think its good advice/experience to share for anyone that reads the title of this thread and thinks it might be worthy.

[JaxRed]

By the way..... JC Penney had it's worst day ever on the stock market. It lost 20% of it's value and did away with it's dividend.

Just goes to show you how good our advice was......

Don't buy Penney stocks

[JaxRed]

Ugly last few days on Wall Street. However, nothing has occurred that has changed my income stream from Dividends.

That's the beauty of being a Dividend Investor.

[JaxRed]

Originally Posted by bucksfan2

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.

You had your little dip..... did you buy? By the way, the smart plan is not switch to Dividends once you get to be an old fart. The smart plan is invest for dividends all along.

[bucksfan2]

Originally Posted by JaxRed

You had your little dip..... did you buy? By the way, the smart plan is not switch to Dividends once you get to be an old fart. The smart plan is invest for dividends all along.

I was tempted to late Friday but I held off. I just wanted to see some stability without violent Greek swings. I invest pretty much in everything that is a dividend payer but I go out on a limb occasionally and buy a stock with no dividends or a very low dividend because I like the growth potential. The problem is the don't have that downside portection and they don't pay you during a down market.

[JaxRed]

Originally Posted by 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.

Well, it certainly appears at this early point that Facebook was a mistake to get into. Down 18% from it's IPO price and 26% from it's initial post IPO price.

[bucksfan2]

Originally Posted by JaxRed

Well, it certainly appears at this early point that Facebook was a mistake to get into. Down 18% from it's IPO price and 26% from it's initial post IPO price.

Facebook's IPO came at the wrong time and was mishandled. It came at a time when the market was acting irrationally to Greece and was driven down further by a the disaster of its IPO pricing. Once it finds some firm footing I think it will be just fine.

Two things that I like about Facebook:
1. Zuckerberg
2. The number of members would be the 3rd largest country in the world. If they find a way to monetize that it really could jump, especially if they find a way to monetize the mobile app.

[oneupper]

Originally Posted by JaxRed

Well, it certainly appears at this early point that Facebook was a mistake to get into. Down 18% from it's IPO price and 26% from it's initial post IPO price.

I put in for 500 for my wife's IRA and got only 100 shares. I consider that fortunate.

I think the FB effect was underestimated by many. It was a huge offering of fresh equity into a thin market. It drained much of the demand for shares that might be out there.

It will take a few months to work that off and unfortunately, we're entering a seasonally soft period.

[bucksfan2]

@oneupper, I saw the other day that Germany is selling 0 coupon bonds. Wait, what? Why would anyone want to buy that? Is it a play on currency?

[oneupper]

Originally Posted by bucksfan2

@oneupper, I saw the other day that Germany is selling 0 coupon bonds. Wait, what? Why would anyone want to buy that? Is it a play on currency?

Nah. They're sold at a discount. There's an implicit yield. The US treasury has sold them too at time, IIRC.

[BuckeyeRed27]

Originally Posted by oneupper

Nah. They're sold at a discount. There's an implicit yield. The US treasury has sold them too at time, IIRC.

And yet you still get to pay taxes on your "phantom interest". Good play in an IRA though, although probably not right now.

[oneupper]

Originally Posted by BuckeyeRed27

And yet you still get to pay taxes on your "phantom interest". Good play in an IRA though, although probably not right now.

Bonds in general make good plays in IRAs due to the taxes, particularly those with high current yields.
In taxable accounts, dividend stocks (common or preferred) can be a better fit since that income is taxed at a lower rate for most people.

[bucksfan2]

Yikes..... Its been a tough month and June hasn't started out so hot.

[oneupper]

Originally Posted by bucksfan2

Yikes..... Its been a tough month and June hasn't started out so hot.

Brutal.

[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.

How exactly did you use your dividend strategy. Did you accumulatet money and then every so often invest in a dividend stock of choice? Did you have a number of holdings that you would add to when they got to a certain price? I am curious as to how you added to your holdings? For the most part I have my portfolio of dividend stocks set but I am trying to figure out what to do with the cash when I get it into my portfolio. I have 30+ years until retirement so I want to keep about 90-95% invested.