Help the old guy start a DGI portfolio

[fenders53]

(09-08-2018, 09:51 PM)NilesMike Wrote: I would not wait if you like T. The last time the yield was this high was 2010

(09-15-2018, 10:12 AM)cannew Wrote:

(09-13-2018, 02:56 PM)fenders53 Wrote: It will be interesting to watch.  My only spec play at the moment and confined to about 1% of total port value.  Win or lose it won't matter so much in the big picture.  I'll learn something along the way and that may be my only gain.  We'll see.

1. At 56 you have many years left especially as you have pensions you can collect at 62.  By 65 you'll also get SS.
2. You thought process seems off.  Yes, you might want to get out of the growth stocks and into DG stocks, but I would never add FI holdings
3. Having a cash reserve is fine but you don't need a large one.
4. "that might be my only gain", again you don't seem to understand how DG works.  You might not get the big gain as you might if you happened to own a great growth stock, but with DG stocks which pay and grow their dividend will see price gains in line with that growth over time.
5. When we were 65 we started consolidating our holdings till we finally had a concentrated portfolio of only 12 stocks that we felt were quality DG stocks
6. We are mid 70's, I'm 76 and we are 100% DG equities.  We have no pensions, other than CPP (your SS), no bonds, ETF's, Preferreds and REIT's.
7. We monitor our Income Growth each year and are up 9.13% for this year.  It's our income that matters.

I appreciate the dissenting view, and welcome your further opinion.  I am in an odd situation since it took a month to transfer my assets and now I am in 90%+ cash.  I was 90% equities for 35 years and now I am a little gun shy to dive back in.  I missed the AUG run due to slow transfer.  90% equities is just  dangerous 5 years out from retirement, and late in a bull market run.  But I got by with it. I don't need all my money in six years but I certainly desire some of it.  I've never been so conservative but this seems like a good time to be patient.  Tariff games are coming IMO.  I don't believe China is gong to back down until it hurts both countries.  We'll know soon.   

I'm with you on no bonds.   This seems like such a a foolish time to dive in with Fed interest rate increases all but certain.  I'd be fortunate if I get MM rates playing bonds anytime soon.  

I now have some index funds and ETFs again, but nothing serious.  Hoping for a dip to re-enter but I will average in while I wait.  

I do desire a 12 stock individual DGI stock port soon.   Selling puts almost daily but so far I am not long much of anything.  The premiums slowly erode on 90% of my put positions.  Put premiums far exceed dividends, and the "collateral money" for a covered put collects 2% money market as I wait to be assigned.  I'm inclined to continue this strategy with the downside being a 10% annual  return (that's very conservative), if I am never assigned a stock.  I've had worse years for sure.  Someday soon the market will dip and I will be long a bunch of stocks with great dividends.  I think that is how this ends and I will be surprised if my wait is long.