12-10-2021, 12:58 PM
My 2022 Planning is really a two-parter, maybe 2.5. Some of it isn't dividend-specific but I'll toss it all in and you folks can let me know if I'm out of bounds.
The big change is retirement. End of the year is when I don't work any longer but I have two months' vacation time which has me receiving full paychecks through February and a smaller on in March. It also gives me the earned income for a $7k Roth contribution. Right now I plan to toss in $500/mo starting in January - I have until 4/15/23. But I could put in more if there's a nice dip.
In my taxable account it will be figuring out how to manage things to fund my not working any more. I manage dividends by quarter and right now am thinking of doing quarterly transfers from my investment to my local bank account. Trims of AAPL and GOOGL to make up my dividend shortfall (about 20% short) will be offset by cash. I have a while to decide - which stock has more room to run? Though one share of Alphabet per quarter would be well over 50% of what I need. If the market pulls back I can use cash. The only other decision is what to do with T though obviously I could make a move in another company if conditions warrant.
I'm managing both the Roth and IRA - once I roll it over - as Total Return Accounts. I expect that most companies I buy will still pay a dividend but more will be low-yielding. I have at least MO to sell from the Roth, target price $50. Not sure on BMY. I like it better than the market.
The IRA is interesting. It's in MFs right now. Once I do the rollover (can start after February 19, full will have to wait until April) my plan is for about 20% to be in funds, mostly index ETFs. I am keeping one Fidelity Fund, maybe two. At least FSMEX. I like medical devices/tech as an investment sector but I have decided the fund can do a better job. I also have FOCPX, a high growth fund that has done very well. Other than those two it will be the usual suspects - SPY, IVV, QQQ, ATVI. The rest will be in stocks. If after about 3 years the funds are outperforming my stocks I should go to all funds and save time. The reverse is also true. I have been able to beat the S&P - by a little, not spectacularly - since I started. If I'm worth a darn I should be able to do better selecting companies for total return. Unless I suck at picking those.
I am contemplating making a list next March - a "20 best companies to own" list. I would put about $10k into each of these, regardless of price, to get me started and build positions in size based on price going forward. I'm not sure I'll do it - I have always used target prices with dividend-payers. But I may.
I shouldn't need to touch the IRAs until the IRS makes me; 13 years. I tell everyone this is my chance to invest like a young person. Quality is always important but I think the longer a person will be in the market, the less important purchase price is. I'll be more active trading in these accounts than in my Taxable but never expect to be what anyone would call a trader. I could also look at options. I used to do those trading grain all the time. Been a while and it's different with stocks. If nothing else, there's no physical product.
At some point Roth conversions are a possibility and there is likely to be a point where I start thinking of giving. But not my first year.
And not investing but at some point not long after retiring I'll re-do my will. I have one but it's 20 years old.
The big change is retirement. End of the year is when I don't work any longer but I have two months' vacation time which has me receiving full paychecks through February and a smaller on in March. It also gives me the earned income for a $7k Roth contribution. Right now I plan to toss in $500/mo starting in January - I have until 4/15/23. But I could put in more if there's a nice dip.
In my taxable account it will be figuring out how to manage things to fund my not working any more. I manage dividends by quarter and right now am thinking of doing quarterly transfers from my investment to my local bank account. Trims of AAPL and GOOGL to make up my dividend shortfall (about 20% short) will be offset by cash. I have a while to decide - which stock has more room to run? Though one share of Alphabet per quarter would be well over 50% of what I need. If the market pulls back I can use cash. The only other decision is what to do with T though obviously I could make a move in another company if conditions warrant.
I'm managing both the Roth and IRA - once I roll it over - as Total Return Accounts. I expect that most companies I buy will still pay a dividend but more will be low-yielding. I have at least MO to sell from the Roth, target price $50. Not sure on BMY. I like it better than the market.
The IRA is interesting. It's in MFs right now. Once I do the rollover (can start after February 19, full will have to wait until April) my plan is for about 20% to be in funds, mostly index ETFs. I am keeping one Fidelity Fund, maybe two. At least FSMEX. I like medical devices/tech as an investment sector but I have decided the fund can do a better job. I also have FOCPX, a high growth fund that has done very well. Other than those two it will be the usual suspects - SPY, IVV, QQQ, ATVI. The rest will be in stocks. If after about 3 years the funds are outperforming my stocks I should go to all funds and save time. The reverse is also true. I have been able to beat the S&P - by a little, not spectacularly - since I started. If I'm worth a darn I should be able to do better selecting companies for total return. Unless I suck at picking those.
I am contemplating making a list next March - a "20 best companies to own" list. I would put about $10k into each of these, regardless of price, to get me started and build positions in size based on price going forward. I'm not sure I'll do it - I have always used target prices with dividend-payers. But I may.
I shouldn't need to touch the IRAs until the IRS makes me; 13 years. I tell everyone this is my chance to invest like a young person. Quality is always important but I think the longer a person will be in the market, the less important purchase price is. I'll be more active trading in these accounts than in my Taxable but never expect to be what anyone would call a trader. I could also look at options. I used to do those trading grain all the time. Been a while and it's different with stocks. If nothing else, there's no physical product.
At some point Roth conversions are a possibility and there is likely to be a point where I start thinking of giving. But not my first year.
And not investing but at some point not long after retiring I'll re-do my will. I have one but it's 20 years old.