How to live off your dividend income

The goal of many, if not most, retired dividend investors is to generate enough income via dividends to cover their living expenses. And additionally to have that dividend stream increase faster than inflation. Sounds like a great goal. If you can achieve it then you can let the principal ride and compound in the market and not worry about the…

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Understanding volatility and compound investment returns

Well, the Gators got slaughtered this weekend and it looks like I’ll lose at least one of my fantasy football matches today. But I do have the Dolphins left tomorrow night against the Pats – there’s still some hope to salvage the weekend. A quick investment blurb for this rainy cold Sunday night in Eastern Tennessee. In reading investment commentary…

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Tech stock dividends: Microsoft

One week ago I posted about tech stock dividends and that tech stocks may become great dividend stocks in the future. Well, its one week later, the Gators are playing again (this time vs Bama, god help us) and its time to revisit tech stock dividends again. My conclusion in last week’s post was that it was too early to…

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Living a better retirement: withdrawal rates higher than 4%

I’ve discussed the 4% withdrawal rule, the safe withdrawal rate (SWR), a couple of times already; in my post on how much does it take to retire and the one on how to actually use the 4% rule. Great, we’re all prepared for a safe and happy retirement. But wouldn’t it be great to able to withdraw more than 4%,…

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Dividends: the great bear market protector

In a previous post on dividend investing I mentioned why I choose to invest in dividend stocks. Its simply because of the higher long term compounded returns (see here for details). Today I’ll discuss another reason to own dividend paying stocks – they protect your portfolio during bear markets.. Or, in other words, they increase your returns during bear markets…

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Inflation: retirement killer

Yesterday’s post got me thinking about inflation. As I said yesterday, “For me, the real risk of bonds is not providing adequate returns to keep up with inflation and taxes over long periods of time, a risk that is rarely talked about.” Inflation is direct reduction to your investment returns whether you investing through a 401K, IRA, or taxable account.…

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Stock vs Bond Risk: a different perspective

If you’ve been keeping up with the market and investment news you probably couldn’t help but notice all the commentary about the possible bond market bubble. See here for an example. The Siegel article in the WSJ is probably the most high profile piece on this topic yet. The argument is basically that government bond yields are so low they…

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Recipe for a happy retirement?

We all love to bash the ole 9 to 5, the salt mines, the slog but work does provide several human needs that I think are often taken for granted. If taken for granted when thinking of retirement, the loss of work can create a vacuum in retirement that can be hard to fill. At the beginning of my career…

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Heads up: tech stock dividends!

Short post for this Saturday evening. Florida Gators are playing Kentucky as I type! Gotta get back to the game. I love dividends. I worked in the technology industry for 20+ years. But that’s about where the relationship normally ends between dividends and technology stocks. Tech stocks are growth stocks right and one buys them for price appreciation right? True…

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Beware MLP ETFs

I haven’t gotten around to discussing owning individual stocks vs mutual funds vs ETFs but I saw an article today that I wanted to discuss briefly with regard to MLPs. There have been several ETFs launched recently to track the performance of the MLP sector or the Alerian MLP Index (AMZ). One ETF in particular has several issues that makes…

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