Investing 102

[sik68]

I was channel surfing last night, and wound up watching Cramer...he was interviewing a board member of Dominion (D), an energy production & distribution company. The two talked a lot about providing energy for the exponentially growing data center industry. Cramer wrapped up the segment with "this is the energy provider to own."

Greg, looking at the 10 year (+66%) and Dividend (4.22%), something that would get your blessing?

[LS1-IROC]

Thanks to Greg and some of the other knowledgeable guys, I'm meeting with Chuck tomorrow to get into the game!

Time to get these slacker employees I have in savings to back to work

[Bucketlist2012]

Originally Posted by LS1-IROC

Thanks to Greg and some of the other knowledgeable guys, I'm meeting with Chuck tomorrow to get into the game!

Time to get these slacker employees I have in savings to back to work

Good job... You will be surprised if you keep your debt( consumer debt interest) low, and your hard earned money to work..

Time, and the right moves, will over time, blow your mind...

Yes the wrong moves suck, but you can minimize the losses with the right strategy and funds that are strong tested long term assets as Greg mentions..

I have 10 % of my money in a company 401K just because they match 10% , and i take the free money by matching it..

But 90% of it , is in a Schwab account that is not controlled by the 401K people...Much better deal for me anyways.

But as Greg mentioned before, TAXES, and each person's DIFFERENT situation, means more homework to come up with an indivdualized plan...

But I am 52...For those much younger....You want to be as Fortunate as Greg ??? Start early and get passionate..


OMG...I just sounded like ,Tommy Vu...

[GregWeld]

Originally Posted by LS1-IROC

Thanks to Greg and some of the other knowledgeable guys, I'm meeting with Chuck tomorrow to get into the game!

Time to get these slacker employees I have in savings to back to work

I hope RAY chimes in here --- I'd love to know what Mutual Fund he was in just so I could check it out - and that he doesn't take my "slacker" comment as a personal attack -- it was meant to be funny - like guys hanging out in the shop... busting each others chops.

I really do think of my money as one dollar is one employee... My job is to manage my employees. They don't need to be super stars - they just need to be always doing the best job for me that they can. And I have different "divisions" for them to work in. The "accountants" are boring steady eddy guys - Then there's the sales team (higher risk) - etc. Some times I have to just flat fire some of them.... and some times some of them need "re-training" (rebalancing)...

[GregWeld]

Along the lines that Solar was mentioning -- since it's the first of the month -- I wake up to some TAX FREE MUNI payments... So let me explain a little bit about this --- Tax free bonds pay all 'over the place' -- so when you have a bunch of them you're always getting "something" generally around the 1st or the 15th of the month. There are TWO periods in the year when I get really really nice payments --- June and December... the rest of the time it amounts to a few thousand per month.. but June and December is a happy place.

Dividends will pay like this as well.... you go along and nothing - more nothing and then BAM! In they come. The more stocks you own - the more spread out they become. Different "quarters" - different pay dates - different "EX" dates. But once the STREAM starts (takes at least 6 months) then it seems you're getting something all the time.

I've got a sizable amount of shares (25,000) in Annaly Capital Management (NLY) and January 26th I got a dividend of $14,250. I mention this because this is what you're after.... Think about that -- I get that 4 times a year. I don't care who you are - that's like free money!

Here's the INTEREST (TAX FREE) I got just today (being the 1st).

02/01/12

Cash
DIVIDEND RECEIVED
AMEREN ILL CO PFD 4.92% AILLM


$738.00 USD


02/01/12

Cash
MUNI EXEMPT INT
WALLA WALLA WASH WTR & WASTEWTR REV REF 03.87500% 08/01/2017 BDS SER. 2005 932238BY3


$968.75 USD


02/01/12

Cash
DIVIDEND RECEIVED
WASHINGTON GAS LT CO PFD $4.80 WGLCO


$690.00 USD


02/01/12

Cash
DIVIDEND RECEIVED
WISCONSIN PUB SVC CP PFD 5% WIPSO


$693.75 USD

[GregWeld]

So to continue on that line of thinking -- and remember -- I'm sharing personal information here because I want those of you that haven't gotten a taste for what savings can do for you -- I want you to SEE... this is REAL... and that you too can do this!

Here's a ETF (exchange traded fund - so similar to a mutual fund) that holds high yielding CORPORATE bonds. This pays MONTHLY... and I use it to "park" cash - so it goes up and down - and obviously so do the dividends. But think abut this if you're retired and you're getting these dividends every month... so let's see if I can "copy and past" from Schwab...

Look at the dates and see that this bad boy (this is not recommending it for ANYONE - this is just ONE example) pays way better than a slot machine.

THIS IS THE POWER OF DIVIDENDS! That's what I'm trying to show you here.


01/04/2012 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: CASH DIV
$1,871.51

12/07/2011 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$1,921.54

11/07/2011 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$1,841.88

10/07/2011 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$1,883.93

09/08/2011 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$1,971.75

06/07/2011 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$3,394.24

05/06/2011 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$2,291.79

04/07/2011 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$2,278.48

03/07/2011 HYG ISHARES TRUST IBOXX $ HIGH YIELD CORP
type: ORD DIV - CASH
$1,157.45

[Sieg]

Originally Posted by GregWeld

I've got a sizable amount of shares (25,000) in Annaly Capital Management (NLY) and January 26th I got a dividend of $14,250. I mention this because this is what you're after.... Think about that -- I get that 4 times a year. I don't care who you are - that's like free money!

I like that style of "high-risk" in my portfolio!

[GregWeld]

Originally Posted by Sieg

I like that style of "high-risk" in my portfolio!

Me too!

I use JNK and HYG and NLY as my 'balance' in one stock account to bring the overall dividend payout UP... from the lower payouts of the Coke and JNJ etc. BUT --- Don't mistake that for being greedy -- they are VERY SMALL percentages of my overall invested dollars --- and I have a quite healthy MUNI BOND portfolio that is "super safe"... But also major boring and notoriously low yield.

Remember -- MUNI BONDS like that are bought for blue haired old ladies (me) and have an income stream that is tax free -- but for that safety and yield -- you'll GET ZERO GROWTH in your capital! I can "trade them" -- every one of mine has a face value above where I bought them -- but then that's not why I bought them. I bought them to have a safe income stream that is tax free... so that's what I'll stick to.

[Blake Foster]

Just hired another bunch of Employees and have contracted to add the same number every month going forward. Bastards better work!!!

I just had a meeting with my guy , transfered all the wifes -2% return last year to my guy who gave me 20.7% last year. actually he said i had the 4th highest performing account at their firm last year obviously as a precentage not cold hard bucks. to bad there wasn't millions in the account. My compound anual return since 2001 has been 10.5% and the total return from 2001 has been 176%
so I don't think I will change much lol

[GregWeld]

Originally Posted by sik68

I was channel surfing last night, and wound up watching Cramer...he was interviewing a board member of Dominion (D), an energy production & distribution company. The two talked a lot about providing energy for the exponentially growing data center industry. Cramer wrapped up the segment with "this is the energy provider to own."

Greg, looking at the 10 year (+66%) and Dividend (4.22%), something that would get your blessing?

Yeah buddy -- ya got GROWTH and a very nice dividend... I don't own this one - I own Con Edison (ED) and this is like the "COKE VS PEPSI" debate -- own either one or both... Good for you watching and listening and then DOING YOUR HOMEWORK.

Think about these "utilities".... everybody has to pay their power bill every month... buy the best of breed and kick back. They bring stability to your account -- a nice dividend and decent growth... all the things we're looking for.