Greg - it will take me a while to catch up on reading all the posts. Good stuff what I have read so far!
Give the rest of you guys some encouragement! My current employer allows us to put up to 90% of our 401 into a "self directed" brokerage. I consolidated all my previous employers accounts and put as much as my finances or the company allows into the account each year. So about 60% of my total savings are sitting in this account as of now. The neat part is that ALL the gains in this account are not taxed until later, so the growth is not hampered. I also put away as much as they let me into our HSA, once I reach a set amount they will also let me self manage the investments in that one. The HSA is really neat in that the money both in and out are tax free. I also expect that health care costs down the road are not going to be lower, so money saved there will probably get used. I have not reached a critical mass on the HSA yet, maybe at some point I will slow down on funding that one.
OK, back to the "self directed" account. Currently has ABT, BMY, CAG, INTC, JNJ, KMB, MO, MRK, NUE, RDSA, VZ, PG, and WM. INTC I picked up 2 years ago, the rest I have had longer. They are all DRIP... Dividend Reinvestment. Between these and my other holdings the average rate of return since I opened the account in August 2006 is about 21%. My investment strategy is similar to the "Dogs of the Dow" strategy (has its own web page), my "secret" is that I do not limit myself to this list or just the Dow index. Other than that, it is dumb simple. When I have some cash, the "Dogs" web page is where I start my search. Must be mid to large cap, must be growing, must be a company that I believe is sound in principal and direction, and then I look for a period where magically that stock is inexplicably priced on the low side. Some of the stocks listed I bought when the dividend rate was 4-5%, I don't recall buying any under 4%.
Oh, my other rule is a personal one. I participate in the company ESPP (employee stock purchase program), but I sell it immediately when I get it and move the money elsewhere. I hold $0 in company stock. I have too much already invested emotionally in the place, I do not need the stock performance souring my mood. Besides, as good as they are, they do not meet my stock picking criteria, the dividend is too low.
I used to have NLY and a few other similar investments in my E-Trade account... returns were great but it was kind of scary, I got out. Went back to the simple stuff I am not inclined to look at so much.
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