Investment Strategies?

Weather Man

Persistance Is A Bitch
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This is mainly aimed at guys and gals getting hit by the 3.8% medicare tax.

I have been looking and looking at strategies to maximize "yield/income" and pay the tax man as little as possible with a long term outlook.

To say they're more investment strategies under the sun all claiming to be the right way is an understatement.

My initial thought was to have a well diversified portfolio by, bond/equity, size and most sectors using ETF's with a few individual stocks that maximized dividends with some growth funds too. I would then reinvest around 25-30% of the dividend yield and capture limited capitals gains off the growth funds as warranted.

I keep 2nd guessing myself and thinking I should be much more aggressive with growth funds with limited dividend payout. But, when you look at even limited dividend reinvestment versus pure stock appreciation, dividend reinvestment usually kicks stock appreciation in the butt. Also, the dividend stocks also appreciate, just not as fast as a pure appreciation stock.

I am also trying to peer into my crystal ball and figure out what happens if a D becomes president and worst case would be D's take control of everything.

I feel myself leaning toward just paying whatever tax is due with the income that develops and go with my initial thought.

Thoughts and comments welcome.
 

nxhappy

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dividend stocks are great. take 10 grand and pick 10 stocks. The key is to diversify. You don't want all your eggs in one basket. It's pretty easy to pick the good ones (as long as you HOLD and not sell when the market takes a shit). You gotta be in it for the long run, 20 or 30 years. Few good ones: apple, disney, microsoft, amazon, marijuana stock, walmart, netflix, cocacola, procter gamble, etc etc.

another solid move: 1oz gold coins. over time you WILL make money. and WHEN the dollar weakens, gold is a great back up. you need about $14,000 for 10 coins.

last good option is buying a house. I just bought a house in Florida. I'm not renting it just yet but it's a great fall back. If you can afford a second house it's a no brainer. My dad always told me: "son, God isn't makin' more land". If your mortage is $800 a month and you can cover the stroke with a week of rent, your house is basically free. And in 30 years you could easily double or triple your money. Sometimes you can snap a house for cheap if it needs a little bit of work.
 

Ohio Snake

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This is mainly aimed at guys and gals getting hit by the 3.8% medicare tax.

I have been looking and looking at strategies to maximize "yield/income" and pay the tax man as little as possible with a long term outlook.

To say they're more investment strategies under the sun all claiming to be the right way is an understatement.

My initial thought was to have a well diversified portfolio by, bond/equity, size and most sectors using ETF's with a few individual stocks that maximized dividends with some growth funds too. I would then reinvest around 25-30% of the dividend yield and capture limited capitals gains off the growth funds as warranted.

I keep 2nd guessing myself and thinking I should be much more aggressive with growth funds with limited dividend payout. But, when you look at even limited dividend reinvestment versus pure stock appreciation, dividend reinvestment usually kicks stock appreciation in the butt. Also, the dividend stocks also appreciate, just not as fast as a pure appreciation stock.

I am also trying to peer into my crystal ball and figure out what happens if a D becomes president and worst case would be D's take control of everything.

I feel myself leaning toward just paying whatever tax is due with the income that develops and go with my initial thought.

Thoughts and comments welcome.

Before getting into investment strategies.......

Questions first to reduce MAGI:

Are you and/or your spouse a business owner? If yes, are you sole prop, Sub S or C? Any K1 income if Sub S?

Are you and your spouse maximizing your deferral to retirement plans, if available? If a plan is available, what is it?

Do you have an HSA and are you maximizing the contribution?


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Weather Man

Persistance Is A Bitch
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Before getting into investment strategies.......

Questions first to reduce MAGI:

Are you and/or your spouse a business owner? If yes, are you sole prop, Sub S or C? Any K1 income if Sub S?

No.

Are you and your spouse maximizing your deferral to retirement plans, if available? If a plan is available, what is it?

I am retired Air Force. My wife is a teacher in the state teachers pension. She is also matching the schools contributions to a separate teacher retirement fund.

Do you have an HSA and are you maximizing the contribution?

Health care is through my military Tricare and a purchased supplemental.


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Answers are in the quote.

I assume you are an investment advisor as your day job?
 

Handlebar Moustache

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dividend stocks are great. take 10 grand and pick 10 stocks. The key is to diversify. You don't want all your eggs in one basket. It's pretty easy to pick the good ones (as long as you HOLD and not sell when the market takes a shit). You gotta be in it for the long run, 20 or 30 years. Few good ones: apple, disney, microsoft, amazon, marijuana stock, walmart, netflix, cocacola, procter gamble, etc etc.

another solid move: 1oz gold coins. over time you WILL make money. and WHEN the dollar weakens, gold is a great back up. you need about $14,000 for 10 coins.

last good option is buying a house. I just bought a house in Florida. I'm not renting it just yet but it's a great fall back. If you can afford a second house it's a no brainer. My dad always told me: "son, God isn't makin' more land". If your mortage is $800 a month and you can cover the stroke with a week of rent, your house is basically free. And in 30 years you could easily double or triple your money. Sometimes you can snap a house for cheap if it needs a little bit of work.

I agree. I like dividend investing in my Roth IRA with a dividend ETF like VYM. Very low cost, gives you some immediate blue chip diversification, and pays a reliable 3% dividend. Trade it around a position and ride the waves up to lock in some profits here and there; if the market suddenly tanks, just hold on to it and let the dividend drip. I’m happy to hold my shares for 10+ years...just as happy to lock in profits 5% at a time and hit the ex-div dates at the same time.

Precious metals... I went in gold balls deep in 2011. I’m just now moving solidly into the black, but it always worked as a nice portfolio stabilizer. I also went in balls deep on sprott physical silver at 28 an oz. Bad move... still holding. Idgaf... I’ll hold forever. The physical silver coins I bought, however, are in the black due to numismatic value. I love silver; I’m sorry. We are over 20 trill in debt...I like some white metal to make myself feel better.

Real estate... my best investments. 2 rentals have done well. It’s not for everyone, but if you can check some boxes off, it is a solid option. My opinions only.
 

Ohio Snake

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Answers are in the quote.

I assume you are an investment advisor as your day job?

You are correct I am an investment advisor. I guess my questions gave me away

You being retired throws a twist and reduces flexibility to reduce your MAGI.

Im guessing you have a substantial Non Qualified portfolio taxed as 1099 Inc for dividends and capital gains.......especially dividend producing stocks.

What is your yearly growth expectation (reward) AND market loss comfort (risk)? Your investment holdings seem to be at least Moderate Aggressive ( Growth) or Aggressive ( Capital Appreciation).

A diversified portfolio matched to your Risk/Reward is good thinking.

I don’t think munis are a fit for your growth expectation, so that should be eliminated.




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Weather Man

Persistance Is A Bitch
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Forgot one other question..... When will your spouse retire?

Will her retire lower your combined MAGI?


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She could retire any year now, depends on how bad a class of kids that she gets at this point.

It would lower MAGI.
 

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