Friday, May 29, 2015

May EOM Wrap Up

May EOM Wrap Up

May was my biggest dividend payout to date at: $161.60 :-)


Dividends by Month

2015 Dividend Goal Progress


I had a side hustle pay out some money plus an equity grant so I made some purchases in taxable accounts

This month I bought:

F @$15.53  for a starter position.  Weekly chart is looking pretty weak so I'd be willing to add more in the 14.00-14.50 area. 

Some reasons for the purchase: 

WBK @$25.64 for some foreign (AUS) financial exposure. Weekly chart is looking weak (you'll detect a trend here) Looking to buy more below $25.00. Did miss the ex-dividend date though :-(

One of the four big banks in Australia, but the only one on NYSE and 5.72% dividend yield. I want to continue to get more foreign exposure although I will probably primarily do this via PID or IDV

HSY @$93.37 in my Loyal3 account  I would love for it to get back down to $90/91 area and i'll buy more.


NVDA @$20.54 

I'm bullish on NVDA for long term with their attempt to become the NFLX of gaming.  Its also a tech company that at least pays a little (1.53%) to own it.

PG @$80.28

Reasons:  it was $8 dollars cheaper than i bought it for my IRA back in Dec/Jan.  Its on sale at the moment.  Weekly chart is looking weak though. I plan to add more between $75-$78. 3.34% dividend yield.

JNJ @$100.91  

Reasons: I own it, like it, its 6 dollars cheaper than I own it in my IRA.  Looks like it found its bottom around 98 for the time being. 2.97% dividend yield.

Normal Loyal 3 purchases for May:
K, KO, DPS  

Reasons: I buy whatever is red on my tracking chart for that month to average down.

Tuesday, May 26, 2015

Things I wish I knew in my 20's

Continuing on from my first post on things I wish I knew when I started working are things I wish I knew in my 20's.

At this point I was getting a steady paycheck and was in the military. Some topics I really had no clue about include:

1. The key to saving is living on less than you make.

To anyone that practices any sort of frugality you know this one already but I think it is lost on the majority of people in their 20's.  Now to be fair I had several bosses that told me to live on my previous salary and save the difference. I mostly heeded this advice but banked the cash only to piss it away on other things later.  Plus I was mostly brought up to equate stuff with caring/love. So buy all the things!

To be fair its suuuuuuuper difficult at that time in your life not to blow all your money on stuff.  Going out with friends, traveling, eating out, you can finally afford a nice-ish car, etc.  Happy to hear advice on how you bypass this stage to pass on to the little ones.

Either way, its true, the key to saving is living on less than you make.

The part that's missing in that advice is to properly do something with that extra money. I touched on this in the previous post about wishing I knew something...anything...about retirement accounts but understanding the power of compounding is also key.  After a brief stint with FirstCommand where I was sold high load funds and life insurance I didn't need I eventually did end up with a Roth IRA in an S&P fund.  Unfortunately I put the financial education journey on pause there and really didn't pick it back up for 10+ years.

2. Avoid credit card debt at all costs.

This should be obvious but sometimes it is not.  In college everyone is throwing credit cards at you. You need to strike a serious balance between building credit and buying crap you don't need or have money for on credit.  It took me many many YEARS to finally get out of credit card debt.

Credit Cards are a tool that can be used to build credit and earn reward but they must be used appropriately and not as a way to buy things you don't have money for.

3. Establishing a budget

What the heck is a budget?! The key to #1 and avoiding #2 is the budget. AKA why I can't have any fun :-)

To be serious though, I never could understand why I made OK money in my 20's (and now good money) but never had any. It wasn't until I started tracking where it all went that I had my answers.  The One-Page Financial Plan by Carl Richards is an ok place to start. Its very simple, lay it out there and track the money just to see where it goes. Then go looking for things to cut out.  When I decided to try to meet with financial planners many of them asked if  I had a budget and the better ones would only see me after I had it to bring in with me :-)

 If you want some more ammo Dave Ramsey's books are ok as well.  Plus there are tons and tons of resources on this now on the interwebs.

I do this religiously now with YNAB. The manual part is what works for me but its ok to try a few tools to see what sticks and fills the need.

4. Understand Roth vs Traditional IRAs.

**Do the Roth until you make too much**


Where to put the money?
  • No idea:  Target Date Funds via low fee mutal funds or ETFs
  • Some idea: Proper mix of domestic, foreign stocks and bonds via low fee ETFs
  • Lots of ideas: ETFs and dividend growth stocks (see below)
Also understand lower the management fees the better:

5. If employers do any sort of matching, make sure you contribute enough to get that match no matter what.

You want that free money to accumulate as much as you can for as long as you can.

Relevant blog posts:

6. Understand dividend growth investing or at least the buy and hold mentality.

-Learn basic stock analysis
-Learn what a trend is and wether a stock is in an uptrend and downtrend
-Learn about timeframes and how we care about Daily..really more  Weekly/ Monthly charts when it comes to investing.
-Learn about the Dividend Aristocrats and its ok to devote a portion of saving/investing to these Dividend Growth stocks
-Read A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing by Burton G. Malkiel
-Read The Intelligent Investor: The Definitive Book on Value Investing. by Benjamin Graham

Tuesday, May 5, 2015

Motif rebalances & creation of a new Motif

For end of April and May I did some motif rebalancing and created a new Motif.

First up was:

Only change here was to add BUD to the Motif.

Up next is my betting on the future Motif, which I think is all red at the moment :-/

I rebalanced this Motif to add a bunch of solar companies. I really liked the Tesla powerwall announcement and it spurred me to look into some of the other solars.  I plan to dollar cost average this Motif over the next few quarters until it hits full position and then I'll just wait and see what happens. This is a long term bet portfolio and I think I've mentioned that I'm willing to ride this one out and really have no plans to sell anything in the portfolio (for now).

If you are curious as to which solars and why, here you go:

TSLA (why cars + batteries)
SCTY (why walmart partnership)
SUNE (why Kohls partnership)
FSLR (why Apple partnership)
SPWR (why warren buffet involvement && J&J + many others)
VSLR (why up on the year)
CSIQ (why up on the year)

Lastly with some cash back from uncle Sam I created a simple credit card companies motif consisting of V, MA, AXP, and DFS.  Long term I don't see the world doing better with credit card debt (meaning I think we will continue to pile it on) so I think they are a good buy and hold opportunity.