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Thread: Actual Dividend Growth Portfolio

  1. #181
    Member JaxRed's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by gonelong View Post
    From the perspective of my retirement plan I ask ... what losses?

    We can't eat with the total value of our portfolios - we have to convert that to purchasing power. I already know how I am going to do that - my investments are pumping out dividend income (cash flows). For now, those cash flows are busy buying more retirement income. At some point I will be retired and will be using my dividend income (coupled with a pension, social security, etc.) to pay bills, get groceries, and go on trips.

    Had I already been retired that ~25% drop in the market (and my portfolios) would have been just a news story. This event provided a data point for me - my dividend income was essentially unaffected. The stocks I have identified and purchased were able to keep on paying (and some raising) dividends through very difficult times.

    No loss of income. I'd say that is comforting.

    GL
    Great post. My thinking exactly
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  3. #182
    Score Early, Score Often gonelong's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by kaldaniels View Post
    Sure.

    But to use your phrase “Your overall balance drops through the floor.” is never a comforting site for me. If asset prices decrease too drastically and/or for too long, dividends will get cut (not by everyone of course). I’m in it long term and haven’t panicked (kept investing), but being honest when the market lost 30-40% it puts a lump in my throat. History says the market will always bounce back, but it seems like we are in some strange “end stage capitalism” times where nothing would surprise me. Like I said, I’m bullish long term, but I don’t take anything for granted.

    And I get it, different strokes....
    I hear you. I personally could not stomach watching the huge swings of my overall number. I *had* to find another way to go about it.

    If the system tanks, I am not sure there is anywhere safe, so I am putting my head in the sand and pressing forward. I didn't get started until I was 26 and I started from a place of genuine financial ignorance so I am still making up for lost time. I'd like to eventually own some hard assets (Land, etc.), which might help buffer form a real deep crisis, but that is not in the near term.

    Good luck out there.

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  5. #183
    On the brink wolfboy's Avatar
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    Re: Actual Dividend Growth Portfolio

    This has been one of the best off-topic threads on Redszone IMO. I really love the information I've gathered over the years. I'm thinking about starting this for my daughter (7 year old). This would be in addition to her 529 account. Can anyone point me to some helpful resources?
    How do we know he's not Mel Torme?

  6. #184
    Member redsfandan's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by wolfboy View Post
    This has been one of the best off-topic threads on Redszone IMO. I really love the information I've gathered over the years. I'm thinking about starting this for my daughter (7 year old). This would be in addition to her 529 account. Can anyone point me to some helpful resources?
    Sounds like you might want to set up an education IRA, aka a Coverdell account or an ESA (education savings account). You can have both an esa and a 529. There are some differences, though. For example, the contribution limit is much lower ($2,000/yr) but there's a lot more flexibility in how the money can be invested and what expenses are covered. While the investing options in a 529 are similar to a 401k (mostly generic target funds) an esa can include mutual funds, etfs, and individual stocks. I started a couple esa's for a nice/nephew a few years ago at Schwab.


    https://www.savingforcollege.com/art...-coverdell-esa

    https://www.fool.com/retirement/2016...ation-ira.aspx

    https://www.schwab.com/educational-savings-account
    Last edited by redsfandan; 02-02-2021 at 12:59 AM.

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    oneupper (02-02-2021),wolfboy (02-02-2021)

  8. #185
    Danger is my business! oneupper's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by redsfandan View Post
    Sounds like you might want to set up an education IRA, aka a Coverdell account or an ESA (education savings account). You can have both an esa and a 529. There are some differences, though. For example, the contribution limit is much lower ($2,000/yr) but there's a lot more flexibility in how the money can be invested and what expenses are covered. While the investing options in a 529 are similar to a 401k (mostly generic target funds) an esa can include mutual funds, etfs, and individual stocks. I started a couple esa's for a nice/nephew a few years ago at Schwab.


    https://www.savingforcollege.com/art...-coverdell-esa

    https://www.fool.com/retirement/2016...ation-ira.aspx

    https://www.schwab.com/educational-savings-account
    Second this. I also set some of these up for family members. There are income limits on the annual contributions (so if the contributor makes more than X for the year, they can't make the contribution that year), HOWEVER, anyone can make a contribution to the ESA (a sibling, aunt uncle, even the beneficiary themselves), so you can give them the money and they make the contribution. A beneficiary cannot get more than $2000/yr in contributions in aggregate to their ESA (coverdell).

    Not sure if that was clear, but redsfandan's links probably explain it better.
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    wolfboy (02-02-2021)

  10. #186
    On the brink wolfboy's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by oneupper View Post
    Second this. I also set some of these up for family members. There are income limits on the annual contributions (so if the contributor makes more than X for the year, they can't make the contribution that year), HOWEVER, anyone can make a contribution to the ESA (a sibling, aunt uncle, even the beneficiary themselves), so you can give them the money and they make the contribution. A beneficiary cannot get more than $2000/yr in contributions in aggregate to their ESA (coverdell).

    Not sure if that was clear, but redsfandan's links probably explain it better.
    Thanks. We're not eligible, but I'll look into it as an option for family members. As to my original post, I was thinking of this as more of a nest-egg investment for my daughter separate and aside from education savings. I don't think I made it all that clear in my prior post.
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  11. #187
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by wolfboy View Post
    Thanks. We're not eligible, but I'll look into it as an option for family members. As to my original post, I was thinking of this as more of a nest-egg investment for my daughter separate and aside from education savings. I don't think I made it all that clear in my prior post.
    You can do a custodial account or sometimes they are called a UTMA account. It is just a regular investment account that you can transfer into her name when she is 18.

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    wolfboy (02-02-2021)

  13. #188
    On the brink wolfboy's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by BuckeyeRed27 View Post
    You can do a custodial account or sometimes they are called a UTMA account. It is just a regular investment account that you can transfer into her name when she is 18.
    Yep. I've looked into UTMA/UGMA. I guess I'm still not being clear on what I'm looking for. What resources do people use for selecting stocks to build a dividend growth portfolio?
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  14. #189
    Moderator Powel Crosley's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by wolfboy View Post
    Yep. I've looked into UTMA/UGMA. I guess I'm still not being clear on what I'm looking for. What resources do people use for selecting stocks to build a dividend growth portfolio?
    I wouldn't necessarily be looking for dividends in an account for your daughter. Depending on how in tune you are with the stock market, it might be worth just throwing the money into a large cap growth fund. I have a good portion of my IRA in FSPGX, among other funds and individual stocks. I think it does pay a dividend twice per year. Companies like Microsoft and Apple are still good targets for growth and dividend income. I have a large portion of my funds in those two. A little more risky, but Ford has a lot of upside right now. Expect it to go up even more once the dividend is reinstated. Same for GM.

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    wolfboy (02-02-2021)

  16. #190
    On the brink wolfboy's Avatar
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    Re: Actual Dividend Growth Portfolio

    Quote Originally Posted by Powel Crosley View Post
    I wouldn't necessarily be looking for dividends in an account for your daughter. Depending on how in tune you are with the stock market, it might be worth just throwing the money into a large cap growth fund. I have a good portion of my IRA in FSPGX, among other funds and individual stocks. I think it does pay a dividend twice per year. Companies like Microsoft and Apple are still good targets for growth and dividend income. I have a large portion of my funds in those two. A little more risky, but Ford has a lot of upside right now. Expect it to go up even more once the dividend is reinstated. Same for GM.
    This is just a fun project with play money. I've really enjoyed JaxRed's initial post and watching it evolve over the years.
    How do we know he's not Mel Torme?


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