(09-30-2021, 08:21 PM)fenders53 Wrote:

(09-30-2021, 04:43 PM)Kerim Wrote:

(09-30-2021, 03:05 PM)fenders53 Wrote: My port isn't large enough to do that with dividends unless I put much of it in yield traps. 

I think you just described my whole DG strategy...

I'd like to thank you all for paying your taxes and funding my generous pensions lol.    

My stock port is respectable but three milly was never going to happen.  I mostly invested in SPY and small CAP growth.  A few years ago it occurred to me the SPY Div yield was dropping like a rock.  To get $30K after taxes per million in port value you need an average yield exceeding 3 1/2%.  Now subtract some out for a cash bucket as you should in retirement and this starts looking desperate.  You are stuck chasing too many yield traps to make the average work.

.............. and this is when I knew I had to learn how to steal option premiums from millennials who throw down after watching a 20 minute youtube video.  I didn't make them do it.  




About a third of my retirement port will be in a mix of DGI, UTEs and yield traps.  An option trick allocation until I tire of babysitting it. Add in some safish growth with low dividends and hope for the best.  I like MO and XOM well enough, but I am not going to buy 5000 shares and hope the government doesn't wreck their business model because at times that seems to be the goal.

(10-01-2021, 06:23 AM)NilesMike Wrote: My best returns are smaller town multi units. Cheap, little competition and my cash flow is 12% unleveraged. Little to no appreciation however. Need more cash flow? Use leverage.

(10-01-2021, 07:37 AM)fenders53 Wrote: This is one of the most important topics discussed on this forum.  Diversity in your income stream is VERY good.  Real Estate has been solid for centuries.  Being a landlord is not for everyone.  Maybe it doesn't fit one's personality?  I was glad I did it but my career required I keep it small.  You can hire out property management as well if you do it on a larger scale.  I am convinced a side hustle of some sort is important if you don't have a huge and secure wage.  Even then things can change.  Mike and I lived through the 70s-80s.  Major employers just went away on fairly short notice.  More than one way to get along in the world is smart.  Just find something you find interesting.  I repaired cars on the side when I was in my 20s.  Wages seem silly now, but I invested half of it so not so silly with decades of compounding.

Just depending on a DGI port for the bulk of my income would not give me comfort.  I've seen the rug pulled too many times.

(10-01-2021, 09:16 AM)stockguru Wrote: Wow thanks to MRK... MRNA is down $55. Looks like $230 area is coming next. The entire sector is getting hit.

I did add JNJ, MO, AVGO, and a few DE shares

(10-01-2021, 09:13 AM)ken-do-nim Wrote:

(10-01-2021, 07:37 AM)fenders53 Wrote: This is one of the most important topics discussed on this forum.  Diversity in your income stream is VERY good.  Real Estate has been solid for centuries.  Being a landlord is not for everyone.  Maybe it doesn't fit one's personality?  I was glad I did it but my career required I keep it small.  You can hire out property management as well if you do it on a larger scale.  I am convinced a side hustle of some sort is important if you don't have a huge and secure wage.  Even then things can change.  Mike and I lived through the 70s-80s.  Major employers just went away on fairly short notice.  More than one way to get along in the world is smart.  Just find something you find interesting.  I repaired cars on the side when I was in my 20s.  Wages seem silly now, but I invested half of it so not so silly with decades of compounding.

Just depending on a DGI port for the bulk of my income would not give me comfort.  I've seen the rug pulled too many times.

I live in a 1 family that started out as a 2 family.  One thing I've been wrestling with is when I move out (min 4 years), should I convert it back to a 2 family first before I start renting it?  I'll have to figure out how much rent I'd collect with it as it is vs. doing the conversion job ($150k?).

I'd love to spend my retirement publishing gaming supplements that people can print on demand and get passive income from that as well.

(10-01-2021, 09:29 AM)MrFortune Wrote:

(10-01-2021, 09:16 AM)stockguru Wrote: Wow thanks to MRK... MRNA is down $55. Looks like $230 area is coming next. The entire sector is getting hit.

I did add JNJ, MO, AVGO, and a few DE shares

That's why I don't invest in companies like MRNA, BNTX ext. Once the shoe drops it can drop $50-100 in a day. I dont have the stomach for that at my age 

But yeah the chart is saying $200's now. Lets hope those who held it sold at $450's a few weeks back.

Lots of great buy in the market right now. Have to take advantage on the big dips. I added AOS, BX, JNJ, APD, TROW, WPC, AEP and OHI

Also bought some tech SOXL, AVGO and GOOG

(10-01-2021, 06:48 AM)crimsonghost747 Wrote:

(10-01-2021, 06:23 AM)NilesMike Wrote: My best returns are smaller town multi units. Cheap, little competition and my cash flow is 12% unleveraged. Little to no appreciation however. Need more cash flow? Use leverage.

That is a very nice cash flow, especially from unleveraged real estate. I imagine this is yield on cost? or are you using the current estimated value? And if you don't mind me asking, how many units do you have or are planning to have in total?

I would love to do real estate but I'm never around so I would have to buy someone to manage it anyway, so I figured REITs are an easier option for me. But as we all know the cash flows don't even come close to these levels.