Wednesday, May 26, 2010
If you want to do that today, you would need a $4,000,000 paying a 2.5% yield at the time of purchase. A more attainable option would be to build up a portfolio of stocks that not only pay dividends, but increase them on a yearly basis. If you were to reinvest the dividends back into the stocks, that 2.5% average yield could be more than 15% on your initial investment 20 years from now.
For example, in 1990 McDonald's paid a 3.49% yield. On that same initial investment, you would get a 25.6% yield today. In terms of dollars, in 1990 you would have received a $8.75 for every $1000 invest back then. Today, you would get $64 every quarter. That is just amazing and does not take in to fact that you would have more than the initial shares you purchased with that initial $1000. If those dividends were reinvested, then you would see over $300 per quarter.
With that in mind, I ran into a great list of dividend stocks for over at Dividend Growth Investor. Over there you will find great dividend growers such as Altria, McDonald's, Clorox and Con Ed.
Tuesday, May 25, 2010
Another problem with the little one is that she only eats well with yours truly. Mom has a tough time feeding her and more calories are wasted than taken in. My work has been accommodating, but that can only last so long. By not being in the office as much as before, I lose that face time with my fellow coworkers. Even though I put in my best, the perception is that I am not putting in as much as I can. This is normal office politics.
This has lead me to think about what my long term goals are and where my priorities should be. Ultimately, I would love to be able to spend as much time as I can taking care of our younger daughter. The more we can work with her now, the better for her long term development.
So, my dream would be to free myself of the 9-5 work day. I think that by paying off our debts and earning passive income would be the best way to achieve that goal. Passive income would be in the form or website earnings and writing for sites such as Associated Content, as well as investment income. I would be ideal to gather enough dividend paying equities to be able to live off the payments.
Now I have to work towards that goal. I have setup my get out of debt plan already, but need to see if I can advance that somehow and in the meantime, build up my equity portfolio. Good luck to me!!
Monday, May 24, 2010
1. Set your sights on where you’re going
So true. If you don't have a vision, then how will you know where you end up.
2. Educate yourself
Whether you want to be a finance guru or scientist, you will want to study, study, study.
3. Passion pays off
You have to love what you do, otherwise, you will not succeed.
4. Grow your money
Reinvest what you earn back into your business. Don't squander your earning frivolously.
5. No guts, no glory
Just like exercising, "no pain, no gain." You have to take a risk and sometimes it may seem tough, but you have to continue.
Wednesday, May 19, 2010
"But if your retirement remains several decades distant, you'll need to remember that inflation will eat away at your purchasing power. At 3% inflation each year, in 30 years that $40,000 you withdraw will buy as much as a mere $16,000 does now. Ouch.
So how much would you need to retire at age 65 with the equivalent of today's $1 million? Check out this handy chart:
You'll Need This at Retirement
Tuesday, May 18, 2010
- Emergency Fund: $5,000.00 (currently at $6200 and being taped into)
- Taxable Investments: $2,630.00 (currently $1758.87)
- Retirement Accts: $99,540.00 (currently $90980.79)
- Credit Card Debt: $10,393.00 (currently $12793.42)
Friday, May 14, 2010
Combined with my prior purchase of Fifth Street Finance Corporation (FSC), I should be getting around $79 a year on my initial $990 dollar investment. This is much better than if I left it in a savings account since I don't plan on touching the money for years. I will also look forward to being able to add to the account when our finances are more stable.
Thursday, May 13, 2010
The sewer usage bill could have been split into two payments, but I wanted to get it over with. Out of sight, out of mind. Hopefully we can make this up over the summer somehow. I might have to switch some things out, like the extra cash I was going to put towards our credit card bill. Also, we have no auto insurance payments over June/July as well as a couple of dividend checks from our insurance company.
Wednesday, May 12, 2010
Tuesday, May 11, 2010
Here are some options of what I can do with the money:
- Cash it and put it in towards a credit card that is at 4.99%
- Cash it and add it to our emergency fund earning .50%
- Keep it at Scottrade and put it in a dividend paying stock such as JNJ or ADP which will get me nearly 4%.
- Keep it and try to search for a good growth stock. I actually did well in my last holding at Apple and made some good money after seeing the account dip down to about $500.