Rising Prescription Costs are Hurting Us

Our little one, requires a high dosage of vitamins that are compounded so that she can take them orally. She has feeding issues (not able to chew well) so we give them by oral syringe. There are 8 separate vitamins that are put into 5 compounds of varying tastes. These are to make up for her genetic/metabolic vitamin deficiency. She has been on the cocktail for a year and has shown improvement.

The problem is that the cost of the vitamins and compounding has gone up drastically in the past 6 months. At the end of last year, it was $10 per prescription, with 3 being twice a month. At the time, there we a total of 9 refills per month. That comes to a total of $90/ month. Then in January of this year the co-pays went to $30 so the grand total went to $270/ month. We worked hard with the pharmacist and neurologist to cut the total prescriptions down to 5 a month and the total was $150/ month.

Well, this month our health provider decided to upped the co-pays to $50 a month. That makes the total $250.00. I think they are trying to make our live miserable. We are currently working with the pharmacist and neurologist again to try and bring the cost down. Otherwise we are gonna go on the canned beans diet.

Dividend Play: Altria

On Friday, I decided to add to my position in Altria. I could not resist the 7% dividend this stock now offers. I was actually looking to add Chevron or Exxon Mobil, but settled back on Altria. The stock is down 10% since April, and I believe this to be unwarranted.

So, now I am done with my initial dividend portfolio. This portfolio currently makes up only 5% over my overall investment portfolio. The other are in mutual funds. The dividend portfolio includes Fifth Street Corporation (FSC), McDonald's (MCD) and Altria (MO). The later to are setup in DRIPs, so I look forward to seeing the shares grow over time. Also, when finances offer, I will add to these positions.

I am actually contemplating increasing this portfolio's value in my overall investment approach. I would like to to be at least 50%, so that it will produce a generous income when the time comes to live off our investments.

Net Worth Update: Ugly May

Here is my first net worth update. It just happens to be on the end of a bad month for the stock market.

The auto category comprises 2 cars, one which is paid out right. We plan to keep both fo many, many years.

As you can see, I paid off quite a bit this month on the credit cards. I am not sure how much I a can keep that up.

The taxable accounts comprise emergency funds and some misc savings.

Dividend Play: McDonald's

Yesterday, I started a position of McDonald's stock in my Roth IRA. It is only 15 shares at the moment, but I plan to use the dividend reinvestment plan there and let the shares grow over time. The company has been raising it's dividend each year at a pretty good rate and I don't see it stopping that anytime soon.

I am studying up on some other stocks to add, as I have left some dollars in my Roth account to make one more purchase. The sectors I am looking at are utilities, energy, consumer goods and some others.

A Great Dividend Portfolio for the Long Term

I have been researching stocks that would be great for dividend income. This would play into my eventual to be able to live off the dividends the stocks would provide, while still enjoying equity growth. Imagine, if you will, being in a position to be able to get $100,000 a year on income from the stocks in you portfolio.

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.

A Different, Yet Ultimate Dream

I have mentioned in the past that our younger daughter has medical issues which has been making it tough for my wife to find some part time work. The little one has an odd school schedule (1/2 day) as well as a slew of therapy sessions during the week. On top of this, she has more than the normal doctor's appointments, some of which are out of state.

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!!

Secrets of Self-Made Millionaires

I found this Readers Digest article via Yahoo on the 5 Secrets of Self-Made Millionaires. It was quite an interesting read. Here is the breakdown of the 5 and my look at them.

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.