This post reflects the FFJ Portfolio activity in July 2017 and the YTD dividend income generated from investments held in the portfolio. Continue reading “FFJ Portfolio – July 2017 Dividend Income Report”
So you did all the right things. You lived within your means and you diligently saved and invested over the years. Now you have accumulated a nice nest egg in taxable and tax deferred accounts. Wonderful! Did you, however, stop to think about the tax implications when you start to withdraw money from your tax deferred accounts?
I have thought extensively about this very matter. While I am grateful that I was able to benefit from tax advantaged accounts over the course of my career, I would like to continue to take advantage of tax minimization strategies when I start withdrawing funds from tax deferred accounts. This brings me to the subject of today’s post.
I have investigated the strategy in which you would marry withdrawals from tax deferred accounts with the use of leverage. In my opinion there are too many pitfalls/risks that could potentially derail any benefits, and therefore, I would avoid this strategy. Continue reading “Avoid Leverage in a Retirement Account Meltdown Strategy”
- This MasterCard stock analysis is based on Q2 2017 results released July 27, 2017.
- MA’s projected EPS for FY 2017 and FY 2018 from multiple analysts have been revised upward subsequent to my February 1, 2017 post.
- MA recently received a favorable ruling from the Competition Appeal Tribunal (CAT) and no longer faces the $18B British Class Action Suit filed against it.
- While MA’s dividend yield is currently sub 1% I expect dividend income and capital gains will yield a high single digit or a low double digit return over the long-term.
- MA and VISA are two stocks I will never sell.
- This Genuine Parts Company stock analysis is based on its Q2 2017 results which were reported July 20, 2017.
- Total sales were up 5% to a record setting $4.1B, net income was $0.19B, and EPS increased 1% to $1.29 versus Q2 2016.
- YTD FY2017, businesses with approximately $0.18B in annual revenues have been acquired. GPC has also made a minority investment in a market leading industrial distributor in Australia.
- Management is of the opinion the long-term fundamental drivers for its U.S. automotive aftermarket business remains sound.
- With a track record of 61 consecutive years of dividend increases, GPC is a member of the exclusive Dividend King group of companies (50 consecutive years of dividend increases).
Given the recent events for which I have provided a high level overview in my Financial Plans Should Account for Potential Major Mental Health Issues post, I have totally neglected this website. Now that matters have improved slightly I will endeavor to resume regular posts. In this regard, I provide an overview of the dividend income generated in the FFJ Portfolio during the month of June 2017. While this portfolio only represents a small component of our overall holdings, I think it is sufficient to demonstrate that a passive dividend income portfolio is:
- a wonderful way to enhance your personal net worth;
- can ultimately provide an “income safety blanket” once it reaches a reasonable value. Continue reading “FFJ Portfolio – June 2017 Dividend Income Report”
Typically, my posts will consist of a company analysis, whether I view the company as a worthwhile investment, and what I deem to be a reasonable valuation. The purpose of today’s post, however, is entirely different. What I hope to impart in this post is:
- the importance of being debt free
- the reason dividend income should be a very important component of any financial planning strategy
- that Powers of Attorney over Health and Wealth can sometimes not be worth the paper they are written on
- the need to craft Wills that take into consideration future potential mental health issues
- the ongoing administration of assets
In essence, every proper financial plan should have a contingency plan in the event one or more family member were to experience major mental health issues.
- Sun Life’s medium term objectives are 8 – 10% EPS growth, 12 – 14% ROE, and a 40 – 50% dividend payout ratio.
- SLF is more of “steady as she goes” type of investment with a moderate level of potential capital appreciation.
- I view SLF as a less volatile long-term investment than its largest publicly traded competitor (Manulife Financial).
- This long economic expansion is now into its 9th year. Typically, expansion ends from a Fed tightening cycle. SLF could be suitable for you if you want to adopt a cautious approach.