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Strategies & Market Trends : Dividend investing for retirement

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Kip S

To: Steve Felix who wrote (24706)	5/11/2016 6:56:13 PM
From: E_K_S	1 Recommendation Read Replies (1) of 34328

The bottom line is the estimated Div income vs the actual div income for each Dec end of year. At Schwab they only provide you the dividend income received year to date and for prior years. When I asked if they could extrapolate my end of year dividend income for the positions held, they said they could not do that since they could not make estimates but only provide the actual amounts paid. That was not good enough for me, so I created a spread sheet but it was difficult to maintain especially if/when I changed and/or closed out positions and/or added new dividend positions. I think it should not be that hard to create the expected income due by month for the current year. Then you could also play "What If" you sold or closed out a holdings to add more or a new position. How that change would impact the final estimated annual numbers especially for the current year. Currently, I do incremental changes for my Buys/Sells so the portfolio will net more 'total' dividend income when I complete the transaction(s). I also periodically calculate where my portfolio value should be based on a 10% annualized return (Rule of 72) as my goal on retirement is to have $1mln in the retirement account(s) at age 65. I started out w/ approx $35K cash from my employer's 401K when I left the company in 1989. I also had a self directed IRA valued at about $40K. That totals aprox 75K in IRA's in 1989. As I have no earned income (all investment income), there were no IRA/ROTH contributions since 1989. Here is a link to one of many different compounding calculators. To date I have compounded just over 7% for those 26 years, even w/ some big position blow-ups (including MHR & Washington Mutual Bank BK's to name just a few). To reach my goal of $1mln at retirement (ie age 65), the next 8 years I need to compound the retirement portfolio(s) at a 12%/year compounding rate. Also, to date I have moved just under 35% of the retirement portfolio(s) into the ROTH account. I am not going to reach for yield but will work on preserving the income streams and may also move more of the funds into fixed income and/or S&P 500 index positions to preserve/maintain the portfolio's purchasing value. The key for me is/was to avoid the big position blow ups and still is. That's why I limit the size of any one stock position to less than a 7% portfolio size. I think the S&P 500 index will be the exception in the future. Also, I am fortunate to have paid off all of my debt (including all mortgages on my properties) and need much less monthly income for my day to day needs. Income producing property provides a nice revenue stream and is a hedge against inflation. Your goals are w/i sight. Just avoid the individual stock blow ups. Good job EKS

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