Originally Posted by
JaxRed
So follow up #1 - - I don't know that I've mentioned this in the thread before or not. I have a brother 10 years younger than me. So he's almost 59. Sometime in 2013 at a mini-family reunion (all the sibling are spread over N.A. - He's in Alaska, I'm in Florida). I mentioned that retirement finances was kind of my thing these days, and he said he had no retirement income or plan (he did have about $200K in 401k). I said if you ever want to start the ball rolling, let me know.
In July of 2014, he contacted me and said 'Let's do this'. It actually took until Feb of 2015 to get the money out of his 401k and into a brokerage IRA account that we controlled and to get it fully invested.
At that point his yearly income from the IRA was $6,862. So his IRA differs from my daughters in a couple respects. First - it has no almost no new money coming in. Since it started in 2016 he's only added $9,000. He contributes to his 401k, You can see with an initial amount of $200K and an income of $6,862 our yield was 3.431%. With the exception of a big chunk of ATT, all the rest was low paying 'regular' S&P kinda stocks. ATT is regular too, it just pays more.
CINF
CL
GPC
INTC
JNJ
KO
MCD
MMM
PG
T
VZ
XOM
MO
COP
CVX
GE
Living in Alaska, he was big on oil. Shortly thereafter I became convinced that oil was a terrible investment. I moved him out of CVX but he wanted to stay in COP and XOM. So, like I thought COP was a dog, and before we bailed on it, we lost over $7,500 in it, XOM has been a dog and even after reinvested dividends he is down $7,000. If he allowed me to, I'd bail on XOM right now. I think they will cut their dividend by a bunch before this time next year.
GE turned out to be a dog to my surprise. Lost about $6,000 on that one. We are out of it.
MO we are down $1,700, but we have no intention of leaving that one. All the rest have been pretty success. So, as you can see it's not been a straight line as far as investments. For the people counting $$ he is pretty far ahead despite the stumbles listed above.
But what has worked to perfection is the income generation.
Feb 2015 - $6,862
Feb 2016 - $7,276
Feb 2017 - $8,479
Feb 2018 - $9,456
Feb 2019 - $10,903
Feb 2020 - $12,161
Jul 2020 - $12,655
Is my brother down total dollars since the start of Covid-19? Yes !!! Has it affected his income? No !! Not a single stock he has cut it's dividend.