tag:blogger.com,1999:blog-83978213971337864122023-11-16T01:15:45.199-05:00Active Passive MoneyAn active journey to create a passive income portfolio.Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.comBlogger74125tag:blogger.com,1999:blog-8397821397133786412.post-67386265580493998912017-01-24T15:48:00.000-05:002017-01-24T15:48:06.791-05:00Buy: ABBV<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhF-sgEqCngojE2FA2AvngFMtYhxNS36-9V20sXSEU1NdKgG2aXwrvkLWtGdlp09S6lG-J2GrYSkzxPzzb65eST0VzJtKPVE0cXCiU2SdDR2r6UNPb4tWjgqvnOnC7aNpOkrALcFim_WJ8x/s1600/buy.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="132" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhF-sgEqCngojE2FA2AvngFMtYhxNS36-9V20sXSEU1NdKgG2aXwrvkLWtGdlp09S6lG-J2GrYSkzxPzzb65eST0VzJtKPVE0cXCiU2SdDR2r6UNPb4tWjgqvnOnC7aNpOkrALcFim_WJ8x/s200/buy.jpg" width="200" /></a>Today I added a new position: ABBV. They didn't show up on my screener because some spin-off activity made it look like their div history is much shorter than it actually is (44 years). When I read about them I started looking closer and liked what I saw: good P/E good div history and growth, and good payout ratio. <br />
<br />
I had a few other options -- adding to TGT that is getting hammered in the market, or adding to O, NHI or HCP. However I want to diversify a bit more, so ABBV it is.<br />
<br />
I only deployed earnings from past dividend payouts. No new cash. I'm tempted to sell QCP if they don't announce dividends but I'm going to be patient for another month or so.<br />
<br />
ABBV will add $ 48.64 to my annual dividend.Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-51219301449861184842017-01-11T21:23:00.002-05:002017-01-11T21:23:54.618-05:00Portfolio Report December 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s1600/IncomeReport.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s200/IncomeReport.jpg" width="150"></a></div>
<div>
Ending a mixed year for my portfolio. I sold some high-yield, but
dividend cutting and poor performing stocks. I picked up my first
monthly div payer, O. Unique for me this year also was that I put no
fresh capital in. I only re-invested div earnings, and proceeds from
closing positions. I did put some money in a lending club account. </div>
<div>
I
expect 2017 to be light on fresh capital as well, as I pre-paid my
investments a year ago, and I'm still on my monthly car payment. Overall
I'm happy with that decision, I think I earned a higher return than
what I've had to pay in interest on my car loan (0.9%). </div>
<div>
</div><a href="https://activepassivemoney.blogspot.com/2017/01/portfolio-report-december-2016.html#more">Read more »</a>Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com4tag:blogger.com,1999:blog-8397821397133786412.post-44124718903359075442016-12-19T06:30:00.000-05:002016-12-19T06:30:21.412-05:00Don't Pre-pay Your Mortgage<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9vKcOHtUGJd75V1ifmQlIKXjSRBHjAVp6rAje5uLHf7CWBNjMMeBM08KAecBFvv_t9TeAoH995bZkvEpY4oN92xY9XplfGFlljl9-3eu-SmqVMk0ncWQ3xwxalr40grs2N1mW2Qha0DN5/s1600/the-entire-mortgage.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="225" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg9vKcOHtUGJd75V1ifmQlIKXjSRBHjAVp6rAje5uLHf7CWBNjMMeBM08KAecBFvv_t9TeAoH995bZkvEpY4oN92xY9XplfGFlljl9-3eu-SmqVMk0ncWQ3xwxalr40grs2N1mW2Qha0DN5/s320/the-entire-mortgage.jpg" width="320"></a></div>
<div>
This past week the old discussion of the pro's and con's of paying of your mortgage early flared up again. While good points were made on both sides of the argument, I'm firmly of the opinion that it doesn't make sense to pay off your mortgage early while you can enjoy a low interest and tax write-offs.</div>
<div>
<br></div>
<div>
Of course, as all things personal finance, it's personal. In my case, a 3.875% interest rate, and the ability to deduct interest from my income makes it a no-brainer to pay the minimum amount. If I had an extra $1000 each month I could put that in LendingClub or in Dividend Stocks and expect at least a 4% return, very conservatively. My returns are higher than that.</div>
<div>
</div><a href="https://activepassivemoney.blogspot.com/2016/12/dont-pre-pay-your-mortgage.html#more">Read more »</a>Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-56778795446276726902016-12-13T11:26:00.000-05:002016-12-13T11:26:00.136-05:00Sell: ARLP<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTnEJX9_PFihcofNPxpVVp8ImKf7qKxwa9nU5w3isteGzaxXlLriHiwoB65xH-rtJ9yUj4rnOa6Jyy5A_YsvMG82YwrteoJWuwnKBwGi2zFEvBysIhuCSKA0MsYsowkA05XYDaKt3CYdNl/s1600/stamp_sold.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="128" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgTnEJX9_PFihcofNPxpVVp8ImKf7qKxwa9nU5w3isteGzaxXlLriHiwoB65xH-rtJ9yUj4rnOa6Jyy5A_YsvMG82YwrteoJWuwnKBwGi2zFEvBysIhuCSKA0MsYsowkA05XYDaKt3CYdNl/s200/stamp_sold.png" width="200" /></a></div>
In the aftermath of the election the market went all sorts of crazy. I
sold my ARLP position when it jumped up several points. It was on my
sell list for a while, given their Div Cuts, and uncertain future. The
stock has been recovering, and while it may continue to climb for some
time to come, this was a good point for me to sell. I used the proceeds and existing cash to invest in a position in O.<br />
<br />
This makes a huge dent in my dividend income, as ARLP paid well. I'm selling mainly because I have additional overhead to complete forms for ARLP's special tax structure. This wipes out most of my income. Second, they qualified for a sale after cutting their dividend. I want stocks that can grow their div over time, even if slowly. ARLP served me well -- while I took a loss on the stock, they paid me around $920 in dividends over the years. I knew they were a high paying div stock and I knew the risks involved. Again, this income helped me get my dividend machine going, and allowed me to get into other positions.<br />
<br />
I waited until after their last div payout of the year, and got lucky with a coal industry bump after the election. I'm happy to get this off the books in 2016.Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-34114233927429295412016-12-09T11:12:00.001-05:002016-12-09T11:12:51.891-05:00Portfolio Report November 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s1600/IncomeReport.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s200/IncomeReport.jpg" width="150"></a></div>
In November I finally sold ARLP and used the proceeds and dividend earnings toward buying O. This checks a long-standing goal of getting out of ARLP. O is my first monthly dividend payer, so my month-to-month and month-year-ago comparisons will be off for the coming 12 months.<br>
My LendingClub experiment is going well. Every loan paid on time in November, and proceeds were automatically re-invested.<br>
<br>
<a href="https://activepassivemoney.blogspot.com/2016/12/portfolio-report-november-2016.html#more">Read more »</a>Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-67999753833933380252016-11-15T10:00:00.000-05:002016-11-15T10:00:11.516-05:00HCP Spins Off QCP, cuts dividend<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgur6IRNFL1o3MNnjOqeUozHT72zoZ-ZbTUd3qdu7UjBg9t7dEcfvdERzgvc0gAaIoTJ2lnUm_iX0EDM7m-XtA-LSSpYdpOSB_TneG8FaLvZ_vKnNr7pywoUt2yYtdOSOA56UWEHwVZQddg/s1600/hcp.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgur6IRNFL1o3MNnjOqeUozHT72zoZ-ZbTUd3qdu7UjBg9t7dEcfvdERzgvc0gAaIoTJ2lnUm_iX0EDM7m-XtA-LSSpYdpOSB_TneG8FaLvZ_vKnNr7pywoUt2yYtdOSOA56UWEHwVZQddg/s200/hcp.jpg" width="200" /></a></div>
<div>
HCP spun off QCP on October 31. As a result, and as expected, HCP
cut their dividend by 35%. This will have a real impact on my portfolio,
as HCP is my largest position. Of course, with QCP being a brand new
company, little is known about how they will handle dividends. For now
I'm going to assume no dividend, and see when some data comes out. I'll
hold on to the stock at least until they report a quarter on their own
and provide some guidance on dividends.</div>
<div>
<br /></div>
<div>
Same
thing for HCP. They will need to prove to me how they perform and handle
dividends over the next quarter or two. There are other REITs like NHI
or O that may be more attractive if HCP or QCP cannot deliver.</div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-64268695781350277002016-11-10T06:00:00.000-05:002016-11-10T06:00:05.866-05:00Portfolio Report October 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s1600/IncomeReport.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s200/IncomeReport.jpg" width="150"></a></div>
Several changes in October. HCP cut dividend after it spun off QCP. More on that later. Also, I put $2500 in a LendingClub account to experiment with a new mostly passive income stream. No other transactions for me.<br>
<div>
<br>
<br>
<li>Dividend Earned in October: $176.66</li>
<li>Dividend Expected in November: 668.41. Lower than August due to HCP cut, but still above November 2015.</li>
<li>Dividend Earned Trailing twelve months: 5,526.11</li>
<li>Dividend Expected Forward twelve months: 5,314.90. A drop due to HCP cut, but excluding anything that QCP may produce.</li>
<li>LendingClub accrued interest: $24.40</li>
<li>LendingClub expected total payments November: $75.42</li>
<br>
</div><a href="https://activepassivemoney.blogspot.com/2016/11/portfolio-report-october-2016.html#more">Read more »</a>Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-45619156638997397872016-11-03T18:00:00.000-04:002016-11-03T18:00:10.103-04:00LendingClub Update November 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVKImjKRqKHZ18f_13lwQ33jRcKGRa0sOTpOKXyn67WjJCnLuyTgvGn0UGRleQLM8WpM0AZPoNjdhj_YSLZolaZmpQiho1qVkeJ70P0GeCHVa2XkVuoB09p4XcZOs3K03Fii_QbUX-gOlg/s1600/Lending-Club-Logo.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVKImjKRqKHZ18f_13lwQ33jRcKGRa0sOTpOKXyn67WjJCnLuyTgvGn0UGRleQLM8WpM0AZPoNjdhj_YSLZolaZmpQiho1qVkeJ70P0GeCHVa2XkVuoB09p4XcZOs3K03Fii_QbUX-gOlg/s200/Lending-Club-Logo.png" width="200"></a></div>
<div>
Last month I put $2,500 into LendingClub. I select automated
investing with a mix that's just below 'safe, lower returns', going for
'still safe, better returns'. I opted to split my money into 100 x $25
notes. These were picked up relatively quickly, and loans were issued
usually within a week. There's one note hanging, stuck in Review. I'm
not sure what's going on there. According to LendingClub documentation
the loan can sit in that status up to 30 days before it's either issued,
or canceled. If canceled, my $25 will be released and automatically put
towards another loan that matches my investment mix target.</div>
<div>
</div><a href="https://activepassivemoney.blogspot.com/2016/11/lendingclub-update-november-2016.html#more">Read more »</a>Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-37381626059298113892016-10-17T11:35:00.000-04:002016-10-17T11:35:06.954-04:00LendingClub Experiment<div class="separator" style="clear: both; text-align: center;">
<a href="https://4.bp.blogspot.com/-23Zq-QKKkCQ/AAAAAAAAAAI/AAAAAAAAAaA/phKIhcKV1MY/s0-c-k-no-ns/photo.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://4.bp.blogspot.com/-23Zq-QKKkCQ/AAAAAAAAAAI/AAAAAAAAAaA/phKIhcKV1MY/s0-c-k-no-ns/photo.jpg" width="200" /></a></div>
<div>
This year has been great for stocks, including dividend stocks. I
have not put any fresh capital into my stock portfolio, and only
re-invested proceeds<a href="http://activepassivemoney.blogspot.com/2016/06/buy-tgt.html"> just once</a>. I've been on the sidelines most of the
time, waiting for two conditions: sufficient dividend proceeds to build
up cash for another investment round, and good entry points for quality
dividend stocks. I'm right at a point where the first condition is
satisfied and will be more actively looking for good stocks.</div>
<div>
<br clear="none" /></div>
<div>
I've
been wanting to diversify from dividend stocks, and stocks in general,
but never found a good options. I don't want to be a landlord, it's too
much hassle, too illiquid, and too much of a gamble unless you do it
large scale. So when I recently read about <a href="https://www.lendingclub.com/">LendingClub</a>, I figured I'd
give it a try. LendingClub is a peer-to-peer lending company. There are
others like Prosper, but LendingClub came best out of the reviews I
read. They did have some fraud issues earlier this year, but that seems
to be behind them now. I'm not going to review LendingClub here, but
I'll share some experiences.</div>
<div>
<br clear="none" /></div>
<div>
High
level the system allows people to get a loan, with each loan chopped
into small notes that are backed by investors. For example a note can be
$25, so a $10k loan is backed by 400 notes. As investor you invest in
notes from different loans to reduce your risk. There are different loan
grades based on the applicant's credit rating and other factors. The
return is based on the interest rate and reduced by any loans that are
written off if they default.</div>
<div>
<br clear="none" /></div>
<div>
It's
only been a week, so no real numbers yet. I opened an account,
transferred $2500 into it, and had to wait a few days for it to clear. I
signed up for Automatic Investments, where you select a risk/return
profile and the system will invest for you. I figured this is good for a
start to get a feel for the system. On Monday my money was in the
account and gradually used to fund different loans. You'll have to wait
until a loan is fully funded (e.g. investors have picked up all the
notes to back the loan), and then the loan gets issued. Within a week
90% of my notes were in issued loans, and I expect my first payments
early November. The remaining 10% are being issues, meaning their loans
are fully funded, and I expect them to be issued early next week. </div>
<div>
<br clear="none" /></div>
<div>
I'm
curious about a few things. First I want to see how long I can keep a
'perfect record', meaning no defaults, charge offs or even late
payments. I have some high risk loans in the mix, and I expect it won't
be long. Second, I'm curious to see how quickly I get back enough money
to buy another note. Now that my initial investment is put to work, I'm
debating if I should re-invest the returns in a different way -- more
risky or less risky. </div>
<div>
<br clear="none" /></div>
<div>
The
next item I want to learn about it the secondary note market. I'm sure
people have figured out the right time to sell a note to optimize their
profits. Notes that are way past due could be charged off, or possible
sold for a dime on the dollar to recoup at least some of the initial
investment. I'll have to read up on it and see what I want to do. The
easy thing is to just let things ride, but I want to see how much time
it takes to manage it for more optimal returns. After all, I'm actively
building a passive income portfolio.</div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-13112092453812879362016-10-09T11:32:00.002-04:002016-10-09T11:32:58.949-04:00Dividend Report September 2016<div>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s1600/IncomeReport.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s200/IncomeReport.jpg" width="150" /></a>September saw the first payment of TRTN, which I'm happy about. The
stock is still not doing well, but as long as they keep paying the
dividend, I'll hold on. </div>
<ul>
<li>Income: $ 482.65</li>
<li>Trailing 12 months: $ 5,516.83<span data-mce-style="font-size: 13px; font-family: arial,sans,sans-serif; text-align: right;" style="font-family: arial,sans,sans-serif; font-size: 13px; text-align: right;"></span></li>
<li>Forward 12 months: $ 5,662.10</li>
</ul>
In October I expect $ 176.66 in income.<br />
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-64992227082529623912016-09-01T06:00:00.000-04:002016-09-01T06:00:21.427-04:00Dividend Report August 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s1600/IncomeReport.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s200/IncomeReport.jpg" width="150" /></a></div>
<div>
This month is lower than the May earnings. In May we had TAL paying
out, and the newly merged company TRTN pays out in September, so we
should see the boost there. We're still up, from August last year.</div>
<div>
RY
pays out in Canadian dollars, so there's always a slight currency
fluctuation; I'm not deducting the foreign tax withholding, as I'll get
that back in my taxes. RY also announce a dividend increase, which is
why we love them.</div>
<div>
<br clear="none" /></div>
<ul>
<li>Income: $ 754.25</li>
<li>Trailing 12 months: $ 5,447.45</li>
<li>Forward 12 months: $ 5,651.60</li>
</ul>
<div>
2016
goal is to have $5900 in projected dividend income. So I'm roughly $250
short of that goal, and we have four months left to invest. I plan to
sell ARLP this year, which brings a lot of cash, which I won't be able
to replace. So hitting the goal is going to be tough. On the other
hand, I do have one car payment ending later this year, which will help
catch up investments early next year. It's around $1000 and I plan to
put half towards a new car fund (cash until I've built up a comfortable
level), and the other half will go into the dividend portfolio.</div>
<div>
<br clear="none" /></div>
<div>
My
cash position is slowly growing from div income the past couple of
months. I'm not a point where I want to jump in yet -- plus various div
stocks are overvalued at the moment. I plan to dump ARLP, and use the
proceeds plus all cash to get into a new position, or possibly add to an
existing one. </div>
<div>
<br clear="none" /></div>
<div>
In September I expect to earn $ 482.65, including the first payout from TRTN as mentioned above, and my first income from TGT.</div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com1tag:blogger.com,1999:blog-8397821397133786412.post-17355659818778269452016-08-29T17:24:00.000-04:002016-08-29T17:24:02.273-04:00Triton Announces New Dividend<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9qQ0qnx8kReEhslFe5AzYNrMPvUl4-2gUNqNUDNFjUqvtkF9wmjL61l1lHaKbcgVdZB3S3lUFdc8yujNCyy2qPbDQklInU77hSkP6mAHics4DZUZmeOgpLb1E4EXCuMZ4Oos_IbgOhEV6/s1600/TRTN.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi9qQ0qnx8kReEhslFe5AzYNrMPvUl4-2gUNqNUDNFjUqvtkF9wmjL61l1lHaKbcgVdZB3S3lUFdc8yujNCyy2qPbDQklInU77hSkP6mAHics4DZUZmeOgpLb1E4EXCuMZ4Oos_IbgOhEV6/s1600/TRTN.png"></a></div>
Triton International (TRTN) started last year when TAL merged. I <a href="http://activepassivemoney.blogspot.com/2015/11/merger-dividend-portfolio-impact.html">wrote about this</a> last Fall. My TAL shares converted to TRTN shares. It was a bit of a gamble holding on to the stock, as no one knows if they keep their promises.<br>
<br>
<a href="https://activepassivemoney.blogspot.com/2016/08/triton-announces-new-dividend.html#more">Read more »</a>Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com1tag:blogger.com,1999:blog-8397821397133786412.post-79723637525492008142016-08-25T16:43:00.002-04:002016-08-25T16:43:52.014-04:00Dividend Report July 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s1600/IncomeReport.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDBo5-6QrrEwJ6SNLFkMC_2OLKMpM6NJhvHnMHodlAOgAM3IQzJJD_C5Aq3kfB5QBzgLEY_K9LkKg09d8rcGAp4IZB0GaMWGp6ZYIqf7FGItgLNismMoDAheUMol2VcXSe-BOUjIWzjU1Q/s200/IncomeReport.jpg" width="150" /></a></div>
<div>
It feels great to go on vacation and come back to a nice stash of
cash in my dividend account. It's why we love dividend investing --
steady income. Plus, we're not anxious about missing any big ups or downs in the market. Vacation is all about unplugging, and financial peace of mind is a big part of that.</div>
<ul>
<li>Income: $ 176.66</li>
<li>Trailing 12 months: $ 5,337.34</li>
</ul>
<div>
This was a 'catch-up' report as we were on vacation, more in August.</div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-9717842760717576162016-06-27T05:00:00.000-04:002016-06-27T05:00:34.161-04:00Buy: TGT<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8_PjibXybbzT9nvd4-B71Po4vNz6TyiRvp8B1c5ROpbsQ6bpAumbWzxaZQkOCpzStiDs7jCQiiSOISA89moz0KCF2TOND7rnl1t4sn9DrrNl9Tgm8WH6-_QwgC2NbLfXVDHIOj9b2aT0d/s1600/buy.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="132" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg8_PjibXybbzT9nvd4-B71Po4vNz6TyiRvp8B1c5ROpbsQ6bpAumbWzxaZQkOCpzStiDs7jCQiiSOISA89moz0KCF2TOND7rnl1t4sn9DrrNl9Tgm8WH6-_QwgC2NbLfXVDHIOj9b2aT0d/s200/buy.jpg" width="200"></a></div>
<div>
Finally, a drop in the market, and I picked up 90 shares of TGT,
adding $216 to my dividend income. My total forward income is now
$5,745.89. My goal for 2016 is $5900 forward div income, and I want to
say this is 'yellow'. I'm only funding this with div income, no fresh
capital, so I think I can find another $155 in div income to meet that
goal. However, it's not all about that one goal. I have ARLP and TAL on
my sell list. Both of these have cut their div, but are still generating
quite a nice sum. I'll sell sometime this year, but I'm not sure that I
will be able to cover the $550 drop in div with other stocks. I'm
willing to take the short term hit though, if it means a more stable
growth portfolio in the long run.</div>
<div>
</div><a href="https://activepassivemoney.blogspot.com/2016/06/buy-tgt.html#more">Read more »</a>Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com1tag:blogger.com,1999:blog-8397821397133786412.post-91299208682459048752016-06-20T20:33:00.001-04:002016-06-20T20:33:27.969-04:00Sell: COP<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZEk-JkXiI2PvXgHB-yC6t8e1neitrWEALagCU0wLpM4Pw1-ElETUsLTHWw4iE6rp2IznyWQTqbBSfkrEH5AGK95ZMmPfmq20qFOdbR39B6PtoSzu0UIX2uhyphenhyphensk-271ENfEWe3vXpQv3cO/s1600/stamp_sold.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="128" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgZEk-JkXiI2PvXgHB-yC6t8e1neitrWEALagCU0wLpM4Pw1-ElETUsLTHWw4iE6rp2IznyWQTqbBSfkrEH5AGK95ZMmPfmq20qFOdbR39B6PtoSzu0UIX2uhyphenhyphensk-271ENfEWe3vXpQv3cO/s200/stamp_sold.png" width="200" /></a></div>
<div>
As I have mentioned before, COP cut their dividend and landed on my
watch to sell list. I waited a bit and COP nicely recovered from their
bottom, and I was able unload all my shares at a minimal capital loss.
Including dividends I came out well ahead. I'm still in CVX, and will
remain so unless their also cut their dividend. They haven't raised, but
with oil prices recovering who knows where the future will take us.</div>
<div>
<br /></div>
<div>
I haven't sold stocks in a long time, and I'm happy with COP's ride overall. It helped me with my div strategy and gained me solid divs. It feels good to sell a stock that cut their div.</div>
<div>
<br clear="none" /></div>
<div>
Meanwhile
the proceeds from COP will add to my growing pile of cash, and I'm
looking to buy soon. But I haven't made a purchase yet this year.</div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-7185734905999604452016-06-08T17:24:00.001-04:002016-06-08T17:24:24.496-04:00Dividend Report May 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghR7GgYH7wNy_c7-VcPn-UHDu6ZTfYa0ENltn_sujrch78FHbNwXGtc4_EW0FwldLcOe76uHKiE2zNcoPsl2GQIjtKIIg3MyxEEchhBOxDmKBR4En1qKuPa9zwpGeqxsbaAlRe3gdhp7Xe/s1600/IncomeReport.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghR7GgYH7wNy_c7-VcPn-UHDu6ZTfYa0ENltn_sujrch78FHbNwXGtc4_EW0FwldLcOe76uHKiE2zNcoPsl2GQIjtKIIg3MyxEEchhBOxDmKBR4En1qKuPa9zwpGeqxsbaAlRe3gdhp7Xe/s200/IncomeReport.jpg" width="150" /></a></div>
<div>
May was a good month. Pretty mellow overall. No trades. </div>
<div>
Stats:</div>
<div>
<ul>
<li>Income: $ 753.19</li>
<li>Trailing 12 months: $ 5,144.63</li>
<li>Forward 12 months: $5,599.89</li>
</ul>
</div>
<div>
<br clear="none" /></div>
<div>
Markets have gone up quite a bit, making it attractive to dump COP, TAL and ARLP. I haven't pulled the trigger yet.</div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com2tag:blogger.com,1999:blog-8397821397133786412.post-9056309116691723552016-05-18T07:00:00.000-04:002016-05-18T07:00:20.564-04:00ARLP Div Cut<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVoVH_FuHkuFQD5JDhBBuaWET6bCZ64D_J3-itvvrLsvP4wGs1VhK1zmsGGVOPnS_mRM_IoYfxAQiLdDOFP-S3BhVJWSnQWrPCALRsHK-RPX6TDsFMkZiiC5tOpLiErVBnB-H2wK0T6fIA/s1600/coal-shovel2.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="132" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhVoVH_FuHkuFQD5JDhBBuaWET6bCZ64D_J3-itvvrLsvP4wGs1VhK1zmsGGVOPnS_mRM_IoYfxAQiLdDOFP-S3BhVJWSnQWrPCALRsHK-RPX6TDsFMkZiiC5tOpLiErVBnB-H2wK0T6fIA/s200/coal-shovel2.jpg" width="200" /></a></div>
<div>
Not unexpectedly, ARLP cut their dividends. The coal industry has
been under pressure from low natural gas prices in the short term, but
also by an aggressive move away from coal as energy source. Several
countries have set goals to increase energy from renewable sources. I
believe energy demand will keep growing, and I'm not yet convinced that
renewables can keep up. Having said that, the better investment would be
in an NEE (that I also own), or SolarCity etc. </div>
<div>
<br /></div>
<div>
Still
I think ARLP isn't completely dead. I do believe gas prices will go up,
which will increase coal demand, bringing coal prices up as well. </div>
<div>
<br /></div>
<div>
Having
said all that, their dividends were unsustainable with the lower
revenues and earnings per share. So they had no choice but to cut div.
And that puts them on my sell list. Like with COP, I won't sell on the
news. I was already going to sell ARLP this year for tax and other
reasons. I'll see what the stock does for the next few months and exit
at a proper time for me. </div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-69307844693804552592016-05-13T14:17:00.002-04:002016-05-13T14:17:37.653-04:00Dividend Report April 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghR7GgYH7wNy_c7-VcPn-UHDu6ZTfYa0ENltn_sujrch78FHbNwXGtc4_EW0FwldLcOe76uHKiE2zNcoPsl2GQIjtKIIg3MyxEEchhBOxDmKBR4En1qKuPa9zwpGeqxsbaAlRe3gdhp7Xe/s1600/IncomeReport.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghR7GgYH7wNy_c7-VcPn-UHDu6ZTfYa0ENltn_sujrch78FHbNwXGtc4_EW0FwldLcOe76uHKiE2zNcoPsl2GQIjtKIIg3MyxEEchhBOxDmKBR4En1qKuPa9zwpGeqxsbaAlRe3gdhp7Xe/s200/IncomeReport.jpg" width="150" /></a></div>
<div>
April saw dividend cuts. In particular ARLP was a big hit, reducing
my dividend income by roughly $130 annually. Offsetting this loss were
increases by IBM (7.7%), and JNJ (6.7%). TAL, CVX, and HCP all
maintained their previous payout, as expected. No transactions for my
portfolio. </div>
<div>
<br clear="none" /></div>
<div>
Stats:</div>
<div>
<ul>
<li>Income: $ 176.66</li>
<li>Trailing 12 months: $ 4,961.31</li>
<li>Forward 12 months: $5,494 -- a huge drop due to ARLP</li>
</ul>
</div>
<div>
<br clear="none" /></div>
<div>
In
May I expect a record month of $822 in div income. I have money sitting
idle, and I can't wait to add it to my portfolio. I'm debating if I
should put in my div earnings first, or sell from my sell list (COP -
cut, ARLP - cut, TAL - cut) and then invest the whole lot into another
stock. </div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-58252138020561905572016-04-22T20:01:00.000-04:002016-04-22T20:01:40.059-04:00Dividend Report March 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghR7GgYH7wNy_c7-VcPn-UHDu6ZTfYa0ENltn_sujrch78FHbNwXGtc4_EW0FwldLcOe76uHKiE2zNcoPsl2GQIjtKIIg3MyxEEchhBOxDmKBR4En1qKuPa9zwpGeqxsbaAlRe3gdhp7Xe/s1600/IncomeReport.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEghR7GgYH7wNy_c7-VcPn-UHDu6ZTfYa0ENltn_sujrch78FHbNwXGtc4_EW0FwldLcOe76uHKiE2zNcoPsl2GQIjtKIIg3MyxEEchhBOxDmKBR4En1qKuPa9zwpGeqxsbaAlRe3gdhp7Xe/s200/IncomeReport.jpg" width="150" /></a></div>
March didn't offer any good buy opportunities. Looks like when stocks were on sale earlier in the year, I didn't have enough cash to invest, and now that I have several months worth of dividends earnings, stocks are overbought. So no transactions this month. COP came back up along with oil prices. I'll be looking to sell in the next few weeks.<br />
<br />
My portfolio value has gone up nicely with the rest of the market. No smarts or luck here, just not selling when things tanked in Jan and Feb, but riding the wave down and up again.<br />
<br />
March stats:<br />
<br />
<ul>
<li>Dividend income: $ 436.10. No surprises.</li>
<li>Trailing 12 months: $ 4889.93.</li>
<li>Forward 12 months: $ 5622.72. Slightly higher than last month, due to dividend increases. Not growing fast, as I haven't put money back into the portfolio.</li>
</ul>
<div>
Expected in April: $ 176.66. </div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com1tag:blogger.com,1999:blog-8397821397133786412.post-67389326990261481232016-03-28T08:00:00.000-04:002016-03-28T08:00:06.918-04:00Oil Ups and Downs<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwsr8WM-KS2-1EZr9bTX-s0MWQRscmBCzKYVSZVFadvKweoI8cKFTOtBTMI6rJpeiyY5RjDLrhkm4L6I_87FpJu7AS4q_ir_eKr1ODAkKZ9ny_DlDo7vSewDnE64xXxyMPDX-fHFo5v48p/s1600/oil.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwsr8WM-KS2-1EZr9bTX-s0MWQRscmBCzKYVSZVFadvKweoI8cKFTOtBTMI6rJpeiyY5RjDLrhkm4L6I_87FpJu7AS4q_ir_eKr1ODAkKZ9ny_DlDo7vSewDnE64xXxyMPDX-fHFo5v48p/s1600/oil.jpg"></a></div>
With the recent dividend cut of COP, the stock is on my sell list. Why not sell right away ? I would take a significant loss selling now. I believe the oil price will rise in the next few months, and I would be able to sell at a much better price. Of course timing the market isn't a good strategy, but I believe some patience can be rewarding as well. In the mean time COP keeps paying me, albeit less than before.<br>
<br>
<a href="https://activepassivemoney.blogspot.com/2016/03/oil-ups-and-downs.html#more">Read more »</a>Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com1tag:blogger.com,1999:blog-8397821397133786412.post-63329114536290033162016-03-21T19:00:00.000-04:002016-03-21T19:00:11.276-04:00Coal exit<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_8bv0MoWAgE6lKwfvX9qJqP3DPvvhKyBZmJBTgudYbCJ3AghJb9ttpJ_G-bu7ucceP7me637Ri6d0wLOjAGbf0xzugVvdyGOREZAg08mGEUbityzxfw4AT38nvdE9LWWKnuKwvCO4wsWB/s1600/coal-shovel2.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="132" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi_8bv0MoWAgE6lKwfvX9qJqP3DPvvhKyBZmJBTgudYbCJ3AghJb9ttpJ_G-bu7ucceP7me637Ri6d0wLOjAGbf0xzugVvdyGOREZAg08mGEUbityzxfw4AT38nvdE9LWWKnuKwvCO4wsWB/s200/coal-shovel2.jpg" width="200" /></a></div>
One of my poorest performing stocks is ARLP. This one has lost much of its value, but keeps paying dividends. I purchased the stock because of its high dividend, understanding the risks. I <a href="http://activepassivemoney.blogspot.com/2015/07/arlp-increases-dividend.html">wrote about this</a> last year.<br />
It paid me well, but it's time to move on for two reasons.<br />
<br />
First, there's a hidden cost in this stock. Given that it is a limited partnership, at tax time this requires extra K-1 forms. Since my tax preparer charges by the form, extra forms mean extra cost. Since ARLP is the only stock using that form it eats up my proceeds from this stock. I believe the net income is not worth it, and I'd rather take the loss. The stock already paid me a dividend this year, meaning I'll have to use the form in 2017 when I file my 2016 taxes. My plan is to milk the stock for its dividends this year, and sell after the last payment of the year.<br />
<br />
It's not the only reason I'll sell. The coal industry as a whole has been under pressure the past several months. I believe coal to be part of the energy landscape for some time to come, as we nowhere near have renewable capacity to fill the void. Having said that, I believe there will be come consolidation (read mergers) in the industry, and ongoing pressure on revenue. This is of course bad news for dividends. At some point the industry may reach an equilibrium with a few producers owning all the capacity and running a profitable business. In the mean time I plan to exit coal by the end of the year.Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-19487710319578964992016-02-29T22:42:00.000-05:002016-04-22T19:51:33.047-04:00Dividend Report February 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhdcRVDAr1sNw31bzYdOYnETTjhPmsL7aZLpNRsdocnNYYHf-EMo-lq_Hid_S4WrL_dfzI11ev4cYjtn4djpU_mrgrw7pusLJX4nxFX_CpVlUZoAz1DNk5Tk2Nvny0d7SBFCUCmPrKZFvV6/s1600/IncomeReport.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhdcRVDAr1sNw31bzYdOYnETTjhPmsL7aZLpNRsdocnNYYHf-EMo-lq_Hid_S4WrL_dfzI11ev4cYjtn4djpU_mrgrw7pusLJX4nxFX_CpVlUZoAz1DNk5Tk2Nvny0d7SBFCUCmPrKZFvV6/s200/IncomeReport.jpg" width="150" /></a></div>
<div>
I invested heavily in HCP in December. It is my largest position,
and it saw a huge downturn this past month. They are still holding on to
their dividend payouts, and I'll hold on to the stock as long as they
do. The large position means that the middle months of each quarter will
generate a good amount of income. </div>
<div>
COP cut
dividends, and the company is on my sell list. The price is heavily tied
to the oil price. I plan to sell on an (oil) upswing and use the proceeds to
grow one of my other positions. I'm still exposed to oil with CVX, which
has maintained and not grown their dividend. </div>
<div>
The
reason I called this blog Active Passive is exactly because I have to
stay active to generate passive income. I wish I only picked winners and
could just buy and hold, but it doesn't work that way.</div>
<div>
<br clear="none" /></div>
<div>
Other stats:</div>
<ul>
<li>Dividend income: $ 721.70. Slightly higher than what I expected, due to currency fluctuations affecting RY payout.</li>
<li>Trailing 12 months: $ 4,835.76.</li>
<li>Forward 12 months: $ 5,581.96. This is a drop from last month, as COP cut their dividends. </li>
</ul>
<div>
In
March I expect $ 436.10 in dividend income. I've now saved up two months
worth of dividend income and plan to make a purchase in March.</div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com1tag:blogger.com,1999:blog-8397821397133786412.post-65467971086883377022016-02-15T21:46:00.001-05:002016-02-15T21:46:58.725-05:00Tax-Free Dividends in Retirement<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhR0gEMz20qo4cxDIQtTcKOFuljpJahNoDxX6EjRZ0ALPEYs81jpDLM7bexe0eDHQoSgf3DhPL0-ZB8dxcLMCnfOSQOO8CwaoxjMxkI7tH3dzArTRzGP0RAH4duLs45wqb55zdBkgzIzbdL/s1600/Tax-Free_Roth_Retirement_md.jpg" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="212" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhR0gEMz20qo4cxDIQtTcKOFuljpJahNoDxX6EjRZ0ALPEYs81jpDLM7bexe0eDHQoSgf3DhPL0-ZB8dxcLMCnfOSQOO8CwaoxjMxkI7tH3dzArTRzGP0RAH4duLs45wqb55zdBkgzIzbdL/s320/Tax-Free_Roth_Retirement_md.jpg" width="320" /></a></div>
I'm not a tax adviser. I hear things, read up on them, and apply
them to my situation. I hope this can help some people out. Do your own
research or get professional help.<br />
<div>
<br clear="none" /></div>
<div>
Many
people have standard 401k accounts. It's great as it gives you a tax
break now (more money to invest!), but you'll pay taxes when retire and
start withdrawing. The idea is that your income is lower during
retirement, and hence you'll be in a lower tax bracket. Sounds great.
But have what will your income be in retirement. A disciplined dividend
growth investor may end up with a sizable portfolio and passive income. </div>
<div>
<br clear="none" /></div>
<div>
From: http://www.tax-brackets.org/federaltaxtable</div>
<div>
<br clear="none" /></div>
<div>
<table cellpadding="3" cellspacing="0" class="mce-item-table"><tbody>
<tr data-mce-style="padding: 3px; border-bottom: 1px solid silver;" style="border-bottom: 1px solid silver; padding: 3px;"><td colspan="1" rowspan="1"><strong>Tax Bracket (Single)</strong></td><td colspan="1" rowspan="1"><strong>Tax Bracket (Married)</strong></td><td colspan="1" rowspan="1"><strong>Tax Bracket (Head of Household)</strong></td><td colspan="1" rowspan="1"><strong>Marginal Tax Rate</strong></td></tr>
<tr data-mce-style="background-color: #e0e0e0;" style="background-color: #e0e0e0;"><td colspan="1" rowspan="1">$0+</td><td colspan="1" rowspan="1">$0+</td><td colspan="1" rowspan="1">$0+</td><td colspan="1" rowspan="1"><strong>10%</strong></td></tr>
<tr><td colspan="1" rowspan="1">$9,225+</td><td colspan="1" rowspan="1">$18,450+</td><td colspan="1" rowspan="1">$13,150+</td><td colspan="1" rowspan="1"><strong>15%</strong></td></tr>
<tr data-mce-style="background-color: #e0e0e0;" style="background-color: #e0e0e0;"><td colspan="1" rowspan="1">$37,450+</td><td colspan="1" rowspan="1">$74,900+</td><td colspan="1" rowspan="1">$50,200+</td><td colspan="1" rowspan="1"><strong>25%</strong></td></tr>
<tr><td colspan="1" rowspan="1">$90,750+</td><td colspan="1" rowspan="1">$151,200+</td><td colspan="1" rowspan="1">$129,600+</td><td colspan="1" rowspan="1"><strong>28%</strong></td></tr>
<tr data-mce-style="background-color: #e0e0e0;" style="background-color: #e0e0e0;"><td colspan="1" rowspan="1">$189,300+</td><td colspan="1" rowspan="1">$230,450+</td><td colspan="1" rowspan="1">$209,850+</td><td colspan="1" rowspan="1"><strong>33%</strong></td></tr>
<tr><td colspan="1" rowspan="1">$411,500+</td><td colspan="1" rowspan="1">$411,500+</td><td colspan="1" rowspan="1">$411,500+</td><td colspan="1" rowspan="1"><strong>35%</strong></td></tr>
<tr data-mce-style="background-color: #e0e0e0;" style="background-color: #e0e0e0;"><td colspan="1" rowspan="1">$413,200+</td><td colspan="1" rowspan="1">$464,850+</td><td colspan="1" rowspan="1">$439,000+</td><td colspan="1" rowspan="1"><strong>39.6%</strong></td></tr>
</tbody></table>
</div>
<div>
If
you're building up a passive income portfolio for several decades, it's
not that difficult to end up earning between 9k and 37k a year in
dividends. So you have your dividend income, probably taxed at the
dividend rate, currently 15%. Then you have your 401k income, and any
other pension, which I believe is taxed at the normal income tax rate
per the table above. </div>
<div>
<br clear="none" /></div>
<div>
The
other thing is deductions. When you're working and you have a mortgage,
you have some nice deductions to offset your income. When you're
retired and possibly paid off your house, you no longer have many
deductions. </div>
<div>
<br clear="none" /></div>
<div>
So
look into hedging on the tax rates, as they are extremely low in the US
compared to other nations, and with the deficit as it is, there's a
chance taxes will rise over the next decade or so. Regardless of which
party runs the government. To hedge on tax rates, think about some ways
to earn income tax free. Roth accounts like Roth IRA or Roth 401k are
good vehicles. In those accounts, seek out the dividend paying funds or
individual stocks if you have the option. If your passive income
portfolio brings in 20k, 2.5k could be lost to taxes right away, or more
if taxes increase. With tax free income, you pay taxes now, but all
proceeds come out tax free, including dividends. Check it out!</div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com1tag:blogger.com,1999:blog-8397821397133786412.post-71591131805020321482016-02-04T08:00:00.000-05:002016-02-04T08:00:03.340-05:00Two Div Picks to Spend Your Tax Refund On<div>
Many people get a refund thanks to overpaying taxes all year. I try
to minimize my over payment, as I'd rather invest throughout the year,
but I usually end up with a refund. Instead of spending the refund,
consider putting it toward dividend stocks. Even $500 can go a long way
over 30 years. Of course, if there's high interest debt to be paid off,
do that first. But don't see the refund as a bonus. After all, it's your
own money! The government just held on to it, interest-free, for up to
a year. So now it's time to put that money to work. </div>
<div>
<br /></div>
<div>
Top
stocks in the Active Passive screener are: CFR and LLTC. Both have a
score of 19 out of 20, good yields, good payout ratios, a history of
paying and growing payouts. Plus they're both at least 10% below their
52-week high. Take a look, do your research, and see if they're a fit for
you. I have no position in either of these, and don't plan to buy in
the next two weeks.<br />
<br />
<a href="http://activepassivemoney.blogspot.com/2015/10/two-dividend-picks-for-october.html">Last time, in October</a>, I had CFR on the list, along with NEE. <a href="http://activepassivemoney.blogspot.com/2015/12/buy-nee.html">I bought NEE in December.</a><br />
<br />
CFR details.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidris-VXj21wDAlQyXSOdWPHKyUc2Hc3ad2JmKZC6bPbQcqcb75ISgaC2yr2u0i-oG4fVSbyG9LRJO-lJErRMJLhBxeK4IjF2cxg11KHcbsZ_LMhFxFOfl6TTcyrO6YxwKylLv3sQFxuG4/s1600/Report-CFR-20160129-StockData.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"></a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidris-VXj21wDAlQyXSOdWPHKyUc2Hc3ad2JmKZC6bPbQcqcb75ISgaC2yr2u0i-oG4fVSbyG9LRJO-lJErRMJLhBxeK4IjF2cxg11KHcbsZ_LMhFxFOfl6TTcyrO6YxwKylLv3sQFxuG4/s1600/Report-CFR-20160129-StockData.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEidris-VXj21wDAlQyXSOdWPHKyUc2Hc3ad2JmKZC6bPbQcqcb75ISgaC2yr2u0i-oG4fVSbyG9LRJO-lJErRMJLhBxeK4IjF2cxg11KHcbsZ_LMhFxFOfl6TTcyrO6YxwKylLv3sQFxuG4/s320/Report-CFR-20160129-StockData.png" width="320" /></a><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg40N2-KWvpN40v8Lw0ENg9lrYhRNs03XBlGT7JFvCWPi4MJ7qMG-OTeoS_d_NxhtQ_oU-wtDBSH2Xaf-ZgBIRJhPS1UM1witBQsnNEOB2gpCSZa3ej_6a9aX5BdKObWcUNaTfuWMVF-b0l/s1600/Report-CFR-20160129-DivHistory.png" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg40N2-KWvpN40v8Lw0ENg9lrYhRNs03XBlGT7JFvCWPi4MJ7qMG-OTeoS_d_NxhtQ_oU-wtDBSH2Xaf-ZgBIRJhPS1UM1witBQsnNEOB2gpCSZa3ej_6a9aX5BdKObWcUNaTfuWMVF-b0l/s640/Report-CFR-20160129-DivHistory.png" width="265" /></a></div>
<br />
<br />
<br />
And LLTC.<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhm38xVQDsPOe9Uxl4diL0D94Tzwe6hbssEKjgOpwD3_FzciBiwb7go9ghzX8l6GdTCAwdgmkmn3UmBNTov-CbeHOGP37nad4FEBz7qv8i7RnBSnjgMilKzRCExcL0XXSgz_XYl3aP3reIn/s1600/Report-LLTC-20160129-StockData.png" imageanchor="1" style="clear: left; float: left; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="320" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhm38xVQDsPOe9Uxl4diL0D94Tzwe6hbssEKjgOpwD3_FzciBiwb7go9ghzX8l6GdTCAwdgmkmn3UmBNTov-CbeHOGP37nad4FEBz7qv8i7RnBSnjgMilKzRCExcL0XXSgz_XYl3aP3reIn/s320/Report-LLTC-20160129-StockData.png" width="320" /></a></div>
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDgtPBY08CoXnGxA3mNBoT8MdykGN6qVb-gHRuFazEgVcNG_nexmYvmuvDOmAd4ZZMjM1w13PJLGZ4Yy6IB34I_UZzaDzV6S9-n4_9IhFwHaVhbe9fDXeH-WJnRQNN82TMNrrmOl714OUE/s1600/Report-LLTC-20160129-DivHistory.png" imageanchor="1" style="clear: left; display: inline !important; margin-bottom: 1em; margin-right: 1em;"><img border="0" height="640" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgDgtPBY08CoXnGxA3mNBoT8MdykGN6qVb-gHRuFazEgVcNG_nexmYvmuvDOmAd4ZZMjM1w13PJLGZ4Yy6IB34I_UZzaDzV6S9-n4_9IhFwHaVhbe9fDXeH-WJnRQNN82TMNrrmOl714OUE/s640/Report-LLTC-20160129-DivHistory.png" width="265" /></a></div>
Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0tag:blogger.com,1999:blog-8397821397133786412.post-9017934077493023612016-01-29T23:58:00.000-05:002016-01-29T23:58:12.841-05:00Dividend Report January 2016<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhdcRVDAr1sNw31bzYdOYnETTjhPmsL7aZLpNRsdocnNYYHf-EMo-lq_Hid_S4WrL_dfzI11ev4cYjtn4djpU_mrgrw7pusLJX4nxFX_CpVlUZoAz1DNk5Tk2Nvny0d7SBFCUCmPrKZFvV6/s1600/IncomeReport.jpg" imageanchor="1" style="clear: right; float: right; margin-bottom: 1em; margin-left: 1em;"><img border="0" height="200" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhdcRVDAr1sNw31bzYdOYnETTjhPmsL7aZLpNRsdocnNYYHf-EMo-lq_Hid_S4WrL_dfzI11ev4cYjtn4djpU_mrgrw7pusLJX4nxFX_CpVlUZoAz1DNk5Tk2Nvny0d7SBFCUCmPrKZFvV6/s200/IncomeReport.jpg" width="150"></a></div>
<div>
It's a luxury to be able to ignore the market turmoil. For me January brought exactly the return I expected, $282.53. </div>
<div>
If
you can time the market this would have been a great month to make
money. I don't try to time the market. I <i>do</i> screen for good quality
dividend growth stocks. If I had capital to invest I would have added to
my existing positions. However, I did not make any purchases. My large
investments were done in December, and those will be it for a while.
With my February div income, I will probably have saved up enough for a
trade mid-March.</div>
<div>
So this month I saw income, and I saw pay raises in the form of dividend increases. </div>
<div>
</div><a href="https://activepassivemoney.blogspot.com/2016/01/dividend-report-january-2016.html#more">Read more »</a>Active Passivehttp://www.blogger.com/profile/13618365881080327774noreply@blogger.com0