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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How to implement the 4% safe withdrawal rate

In a previous post (here) I addressed how much you need in assets to retire and how much you can safely withdraw per year to make sure that amount lasts you as long as your retirement lasts. That number, the safe withdrawal rate (SWR), I said was 4% for a 30yr retirement. Now, how does one actually implement this withdrawal…

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Are MLPs overvalued?

As promised in my last post, I want to address the concern that MLPs at today’s prices may be overvalued. There is no doubt that investing in MLPs has received increasing attention this year. This has been true of all income investments particularly bonds in the face of such low yields on savings and fear of the stock market. An…

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MLPs: maybe the best income investment

MLPs, or master limited partnerships, are a type of company structure that was created by an act of congress in 1986 to encourage investment in the natural resource and energy sector. They are income pass-through entities, i.e. they pay no corporate tax and pass most of their profit on to share holders (called unit holders in MLP parlance). For a…

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Thoughts on investment outlook

I mentioned in a previous post on my macro investment outlook of another lost decade for stocks, i.e. that 10 yrs from now the S&P 500 would be at the same level it is today. This investment outlook is based on my thoughts for overall economic growth, which drives profit growth and thus stock returns, over the long run, combined…

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Another way to think about dividend stocks

On Thursday, Market Folly ran a piece summarizing the latest newsletter from Trapeze Asset Management, a hedge fund, called ‘Stocks vs Bonds and Risk vs Reward’. I thought the piece was quite interesting in regards to the way a top hedge fund thinks about stocks vs bonds with respect to risk. The money quote for me is: “It has been…

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Core Strategy: Dividend Investing

My primary investment strategy to generate income and grow my portfolio in retirement is dividend investing. In this post I’ll discuss why dividend investing makes up the fundamental leg of my strategy. It basically boils down to history. Historically, dividends have generated upwards of 45% of the average annual total returns for the S&P500 stock index. And this is going…

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