Become a “Wheeler and Dealer”!

“So as you can see, there is literally no excuse for not having a passive or alternative income stream. “

Become a “Wheeler and Dealer” for Fun and Profit!

Looking back there are people that stand out in life as having that “Secret Sauce” we all desire. Sometimes because we are so focused on other aspects of life we fail to see what is right before our eyes. I have met two people in my lifetime that made a great impact on me when it came to their ability to generate income. These people and others like them have a talent that is generally not recognized as such. They have the ability to look at everyday situations and turn them into money making opportunities. They see opportunities that most of us just pass by. They instinctively know how to make money where we fail to see the value. Most of us ignore opportunities because we don’t realize we are seeing an opportunity. But there are a few people that see opportunities daily and jump on the chance of profiting from them.

They are what I like to call “Wheeler and Dealers”!

The first person was a friend and coworker during my early years in the Navy. He and I became close friends, we not only interacted well at work but we regularly hung out after work and he and his wife would invite me over for dinner. It soon became clear to me that he had a special talent, although at the time I don’t think I understood. He was what I like to call a “Wheeler and a Dealer”. I don’t mean this is a derogatory manner but rather a genuinely positive way. I had great admiration for him and his ability to spot “opportunities” to make money and generate cash flow. Somehow he was always looking for and spotting that deal that would make him some money. He would buy a car and flip it for an instant profit, or make trades then later sell what he traded for a substantial profit. He did not wait for opportunities, he created them.  I have lost contact with him over the years but the last I heard from him he was doing very well and living a very comfortable life. I have no doubt that he is still “Wheeling and Dealing”.

The other person was a relative of mine through marriage. My wife and I were invited to his house for dinner as we happen to be in town for Easter. My first impression was of awe – a beautiful home and a beautiful hidden property of wooded, rolling hills, a small lake stocked with fish. My first thought was that this guy must have a really good job with a really great income. It turns out I was correct but not exactly for the reasons I was thing. When we went inside the first thing you noticed was that the entire home was furnished with expensive and elegant antiques. Not exactly my personal style. But I am sure that many would love to have the furnishings for themselves, especially those of you that are antique lovers.  I would guess that to go out and buy these items to furnish your home would cost you two or three million dollars. Yes, there was that many, and they were that nice. It was just literally amazing.  Later I asked his son what his father did for a living. It was his answer that floored me. He told me that his father had never held a job in his entire life! He was in his seventies at the time. After more questions I learned that he was an amazing person and made his entire living from finding deals and converting them to cash. He would trade or purchase items from people he knew or met and the trade or resale them to others for profits. He had a keen eye for bargains and knew how to turn them into profits. I later learned that the items furnishing his home were items he wanted to keep and decided not to resale or trade. He was sitting on at least a two or three million dollars in antique furnishings in his home. His home was something that I could only dream of at the time. The property and home was easily worth a million even though it was located in a rural area of Tennessee. It turns out I was correct in my original thought – This guy had a really great job, I just did not realize he worked as a “Wheeler and Dealer”.

I believe that each and every one of us has the ability to become a “Wheeler and Dealer” on some level. We may not be able to make our entire living from it but we can certainly obtain the level of alternative income streams from it with very little effort other than keeping our eyes and minds open to opportunities as they present themselves. It takes a different mindset. I may not be able to instinctively spot bargains and deals like my friend but with approaching every day with the will power to look for deals we can all find bargains to make money and who knows many even make a decent living.

So as you can see, there is literally no excuse for not having a passive or alternative income stream. I have only scratched the surface of potential income here. All you need is the ‘want to” and you are funding your retirement! Saying there is nothing I can do is just an excuse. Each and every one of us has the capability to create alternative Income streams! Make a commitment to yourself to start looking for everyday opportunities and acting upon them for profit and for fun. If you are able to successfully transform yourself you are almost guaranteed to never be without income.  Who knows maybe will ask you what your job is and you will reply – I am a “Wheeler and a Dealer”!

Thoughts or Comments? Have your own story to share ? We would love for you to share them with us !

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Sell or Rent Your Property ?

“He is now earning $10,332 per year or $861 per month in additional income !”

This was an actual question from my son seeking my advice on what he should do. He is in the Navy and has to move to Oklahoma for his next duty assignment. The Navy in Oklahoma ? He is actually being assigned to a Joint Services assignment where he will work on an Air Force Base. He owns his house at his present assignment and has determined that can rent it for a small profit of $265 per month. If he were to sell it he should realize a gain of about $65,000 when all is said and done.  Should he rent it or should he just sell it? There is a ton of variables to consider but in this particular case this was my advice.

I advised him to sell the property. He knows that I am not adverse to rental property, in fact I have owned many rental properties and have made great returns from them but in this case I just had to say sell. My reasoning was based on several factors.

The first thing to consider is the shear distance between where his property is located and where he will be stationed. It is hard enough to manage rental property but just like relationships long distance rentals are a bad idea. Even with a good property manager there is still a need for your participation in the property. Property managers typically charge 10% of the rent collected which also drains your positive cash flow – for example if you rented your home for $2,500 a month the property manager takes $250 per month in fees. This is expensive ! You also need to factor in property taxes, Insurance, maintenance costs , tenants not paying rent or leaving after the lease and having an empty home that collects no rent at all. Even minor events can become expensive when you have to rely on others to do the work for you.

If he choose to sell the property then he will net about $65,000 after closing costs, Real Estate agent commissions and taxes …….. and of course there are several things he could do with that ………. use it as a down payment on a new home, pay off other debts but I advised him to invest it. Keeping in theme with that of a Dividend Income Investor one of my priories is when you earn money or come into money from what ever source the first thing you should think about is putting that money to work earning income for you.If you spend the money it cannot earn money for you. If you spend it you can never have it back. Sure, there are lots of circumstances where spending money can save you money, say paying off a high interest loan for example but when you invest that money so that it produces an income for you it does that forever! In fact if you do it correctly it will not only produce income for you for the rest of your life (and your children’s lives should you choose) it will actually grow and make sure you get constant raises in your income.

So if he takes the $65,000 and invests it in Dividend Stocks earning 9% per year ( My own portfolios exceed this yield) then it will immediately produce $5,850 in the first year which equals about $487 per month in income! He will be in Oklahoma for a total of six years. So if he lets the investment t continue to compound at the end of 6 years his account will have a value of almost $111,000 as the original $65,000 would have paid him $45,874 in Dividends (Income) over that six years.

He is now earning $10,332 per year or $861 per month in additional income ! All from not spending the $65,000 !  At this point you could withdraw $500 a month for expenses and still have your investment continue to grow and best of all you still have the cash because you did not spend it.

Rule # 1 – Never, Never spend money you do not have to !

Will he take my advice ? I doubt it as young people seem to not be able to see tomorrow for all the clutter today but I really hope he does because it will make his life easier later for doing just a little bit of planning now. Regardless of what he does though if you find yourself in a similar situation please stop and consider what I have laid out here for you.

 

Any thoughts or comments? We would love to hear them!

Technology means the Elimination of Some

“Here are some everyday items that will eventually go the way of the Dodo Bird :”

In other words – The old has to make way for the new !

Technology can be a great thing for society in general but there is almost always “victims” as the result of the changes it brings. Some happen quickly and some die a very slow death.

Remember the days of Pagers, Typewriters , Printed Encyclopedias,  Drive In Movie Theaters & Boom Boxes? How about 8 track tapes or cassette  tapes, or even VHS tapes? These are just a a few items that have been quickly replaced as technology evolves.

Recognizing changes that are occurring are important for Investors and those of us that like to have multiple incomes streams. In some cases it can determine which direction to invest or to develop our income streams. You certainly don’t want to invest in a dying company with obsolete products.

Here are some everyday items that will eventually go the way of the Dodo Bird :

  1. Libraries – Thanks to digital books it won’t be long before libraries are a distant memory, but don’t expect it to happen overnight because libraries are taxpayer funded. As books are no longer published in paper format the libraries will become non functional or will evolve into digital store houses.
  2. CD’s – Compact Discs are quickly fading from the music scene being quickly replaced by digital devices.
  3. DVD’s – Just like CD’s they are being replaced by streaming services. (Anyone remember the Video Rental stores that were on every corner?)
  4. Watches – Frankly I am surprised they are still around today. I believe they smart watch fad gave this category a brief reprieve but there is doubt this is a dying industry.
  5. Land Phone Lines – Telecommunication companies have for sometime been ridding themselves of the old land lines. These lines cannot carry data and are very expensive to maintain. Very few households even have landlines and when 5-G comes along I am will to bet you will see most businesses dump lanlines in favor of wireless.
  6. Yellow Page Books- When was the last time you bothered to use a Yellowbook? Mine goes straight into the recycling bin as soon as I receive it.
  7. Newspapers – absolutely no one under the age of 35 is reading newspapers ! Its very antiquated and by the time you receive it the news is old news!
  8. Printed Magazines – I know a lot of people love the mindless dribble that is published in magazines but take my word for it, because of publishing and distribution costs you will not see them in the grocery check out lines in the not too distant future. ( As a side note I started to pick one up in the grocery the other day – The price, $13.99,  – I quickly put it back on the shelf!
  9. Brick & Mortar Stores – Online stores like Amazon are the future. Physical stores will be forced to adapt, as a result they will become much smaller and serve a primary role of as that of the electronic store hub for the warehousing of goods that are for pickup by consumers or as an ordering hub. It is unclear to me exactly how they will evolve but they will evolve or face extinction. Smaller stores that survive will only serve in a micro niche capacity.
  10. Checks – Checks are on their way out and my prediction is that banks will not accept paper checks at all by 2025. All banking transactions will be digital.
  11. Paper and coin Money – The governments of the world will most certainly convert to all digital currency soon. I would predict in the next twenty years. Why? To fight counterfeiting, and for the ability to control all aspects of the money flow. The government loses Billions of dollars to “under the Counter” transactions that are not taxed. Digital transactions will eliminated a lot of fraud.
  12. DVD Rental stores & Kiosks – I know the rental stores are mostly gone but a few are still holding out and the Kiosks will soon follow.
  13.   The US Post Office – This one will hold out for quite some time but the writing is on the wall, its just a matter of how long the government will keep this dinosaur going.
  14. Jobs – Technology has been eliminating jobs at a rapid pace but just wait until the robotic revolution kicks in. Jobs will be far and few between. Robots will replace factory workers, store clerks, security, and even reduce military jobs.
  15. Taxi Drivers, Bus Drivers and Truck Drivers – Driver-less cars and trucks will eliminate the need for these professions as well as many other related jobs. Uber and Lyft as well as  other companies are working hard on the testing and implementation of this technology now and maybe in  as soon as five years – say 2022 we will start to see the effects.

It’s coming folks and if your job is one that might be affected you should start developing Multiple Streams of Income now to prepare yourself. The days of relying on single income sources to support yourself or your family will quickly become a thing of the past. Start thinking of ways to develop income sources – like blogging, making money from hobbies, real estate investing or one of my favorites – Dividend Income Investing. Start today by following us for many more great ideas on Investing and developing Multiple Income streams!

 

Thoughts or Comments ? We would love to hear from you !

How Not to Spend Your Money !

“The objective is to accumulate a sufficient amount of investments so that it provides you with a very comfortable income stream “

My philosophy is “The best way to make money is not to spend the money you have”. This concept seems a little difficult for some to understand, at least in my own immediate family. When I try to explain this concept to them I get blank stares or looks of total confusion. I firmly believe though once you grasp this fundamental concept you can be on your way to financial Independence and Freedom. Notice I did not use terms such as  “Millionaire” , “Rich”, “Wealthy” and similar terms or phrases because that is not what my objectives are. The objective is to accumulate a sufficient amount of investments so that it provides you with a very comfortable income stream and is continually growing in size. Of course there is usually many ways of accomplishing goals and objectives but one area that I believe most people seem to ignore is also what I believe on of the most simple ways.  Not spending you money in the first place! In this article I am trying to give you ideas of how not to spend your money. When you don’t spend it you have more to invest and you can produce more income for yourself.  In a previous article I explained how much money each $1,000 dollars would produce in potential future income.

So with the mindset of not spending money let’s see some potential ways to achieve our goals.

Areas to Save Money ( Apply the Golden Rule of Investing)

  • Alcohol – Drinking alcohol can cost you in many ways but just the basic cost is worth avoiding it. If you must drink, then try to buy it yourself and mix your own drinks, you will save 90% of the cost. Easily save $500 per year.
  • Cigarettes – I will not lecture anyone here but just pointing out not only are you hurting your health but you are hurting your future income. I was surprised to learn of cigarettes going for $5.00 a pack. If you smoke a pack a day that’s about $2,000 a year to invest.
  • Fancy Coffee – Did you realize you can make your own coffee at home for about $8 per month versus $120 – $150 per month for the coffee bar brands? Add on another $1,400 in savings !
  • Expensive Vacations – Vacations are important in my opinion but you should look at ways of vacationing that is more affordable. Instead a $5,000 vacation look for ways to cut it in half – Another $2,500 to invest !
  • Prestigious Automobiles – Do you really have to have an expensive or prestigious automobile? In today’s market there is little difference in the quality of cars. What you are really paying for is the honor of sporting a name. Is driving that name brand vehicle really worth the cost of your future income? I would say that only you can answer that question but for me, the answer is a resounding no! Purchase a car with a monthly payment of $300 per month versus $ 600 per month and you will have another $3,600 to invest !
  • Expensive Makeup – I’m certainly no expert on makeup but I have noticed that some of the department store makeup is 10 times the cost of the makeup in other stores. I have yet to see a pretty woman and say to myself “I bet she is wearing the more expensive makeup”. In other words ladies – I don’t believe men know the difference! Let’s cut back $20 per month for a yearly savings of $240
  • Expensive hair-styling – A haircut is a haircut – Why pay more for a product? Is a $100 haircut really better than a $`15 haircut? Probably not. Even at two cuts per year – $170 saved !
  • Fast Food and Expensive Restaurants – Eat out less often and you can easily save $50 per week which amounts to $2,500 per year saved.
  • Telephone – Why pay $ 800 for the privilege of owning an I-phone when you can get a nice phone free instead? Saving $800 would pay you $128 per month in retirement! $800 saved.
  • Cable TV – I remember when they first introduced cable TV – It was billed as Ad free – Not so much any longer, now you are paying to watch ads. Out of thirty minutes of programming they are squeezing in as much as 15 minutes of advertising! All trying to talk you into spending money on things you don’t need. Dumping cable could add as much as $16 per month in retirement income each month! $1,800
  • Designer Clothes and Shoes, Accessories. Many people justify the exuberant prices by saying that they represent higher quality – but in most cases, they don’t! You are paying for the “privilege” of sporting a popular name. The amount saved here varies widely with each individual but I know most could save $500 here and not even notice it.
  • Designer Bottled Water – Did you realize in many cases you are paying 3 times or more for water than gasoline? – Insanity! easily save $260 per year!

These are just a few of many possible areas to cut back or eliminate spending but it amounts to over $16,000 per year in savings ! This could be a big boost to your Income Portfolio !

The point I am trying to make here is that there are plenty of ways that we waste money that we could be investing for our future. Just by eliminating a couple of items from above could put you well on your way to investing for a more than comfortable retirement!  Take a moment and read them again. Now decide which ones you can eliminate and make a pledge to yourself to start investing that money each month instead. Your future self will be eternally grateful that you did!

You may also want to go back to review even necessary items like home and car insurance. I recently reviewed my own Home Owners policy and car Insurance policy. I found that they had slowly crept up in price over the years and after some investigation and a couple of quotes I was able to reduce my homeowners policy by $600 per year and my car insurance by $400 per year for a total sayings of $1,000 per year ! Amazing is the fact that I did not give up a single thing to save this money except for a few moments of my time.  It didn’t take one thing away from my lifestyle and certainly my friends could care less about what insurance company I have. I would recommend you make this part of an annual review of your expenses so that you can be sure you are not overpaying.

The choice is yours alone – I can’t talk you into making wise choices; only you can do that for yourself. Decide now to make this philosophy part of your life. Take action now for your future self, for your children and for your family.

If you do decide to take action on making cuts to your everyday expenses please consider:

  • Keep a diary and write down every penny you spend for a couple of months to become aware of just where you are spending ( Especially pay attention to the discretionary spending)
  • Set a goal – (IE I will cut $200 per month in spending)
  • Take action at cutting expenses
  • Dedicate those savings to your Investing account
  • Review your spending on a periodic basis – say annually in the same month every year so you remember – A suggestion is to perform the review each year when you do your taxes.

My message – It is easier to not spend money than it is to save money.

have your own ways to save money ? How about sharing them with us. We love to hear your comments !

 

 

The Golden Rule of Investing

What is the “Golden Rule of Investing”?

What is the “Golden Rule of Investing”?

 

 “Think of all money you earn as a Potential source of Future Income”  

Don’t think in terms of how much money you have or have saved but rather how much money you can generate from what you have.

In other words, when you receive your pay check, of course you have to pay your bills. And some bills you will always have – electric, water, gas, phone, mortgage but those that you don’t is where you can get the money to finance your future.  A great example is your car. A lot of people buy a car – and of course they buy into the marketing that owning that luxury or high priced sports car is more fulfilling somehow. But what you need to consider how much future income did you give up for that little bit of prestige you got from the fancy car? That extra $ 10,000 or $20,000 you spent just stole from your future income source.  When you make purchases, no matter how small or large you should think about the true cost.  Now if you had kept in mind my Golden Rule you hopefully would have come to the conclusion that you were better off with the lower cost car and saved yourself that $20,000 dollars. If you had then let us see what it would have done for you.

Each one thousand dollars if invested at 8 % yielding stocks would provide you with $80.00 per year in income or $6.66 per month for the rest of your life.  It may not sound like much but consider that was just the one thousand. Now, let’s multiply those thousand dollars by twenty. That creates an income stream of $1,600 per year or $133.33 dollars per month! Could you use that extra $133.33 per month for the rest of your life? But wait, it doesn’t stop there! Because of “Compounding” your income stream will be constantly growing also! Most stocks pay their Dividends on a quarterly basis so we will see what happens over time to your income based on quarterly payments of Dividends.  Even though I like to express Dividend Income in Monthly Income because I believe most of us can relate to that better, the reality is that most companies pay their Dividends on a quarterly basis. So we invested in this company (we will call “Company A”) and it is paying its dividend each quarter of $.40 per share (I will explain how dividends work in more detail in a later chapter) we would earn $400 the first quarter. If you used that money to buy more shares,  your shares would increase by 20 shares so in the next quarter your dividend income would be $408.00, 2nd quarter it would be $416.16, 3rd quarter it would be $424.32 and the 4th quarter it would be $432.80! On an annual basis your income would now be $1,729.73 per year or $ 144.14 per month. This is a monthly increase of $10.81 per month!  So as you can see not only will the money you saved provide you with a monthly income for the rest of your life it will also grow and provide you increases in income for the rest of your life ! Don’t worry if you don’t understand how dividends work or the how the math works as we will be discussing that later on. The important thing for now is to understand that by investing money correctly (and not spending it unwisely) your money can grow to provide you with an income stream so that you will never have to worry about money again and insure a bright future for you and your family.

“Don’t ever spend a Cent if you are not forced to”!  – If you spend it – you lose it, but if you save it, it will pay you for the rest of your life!

Investing by not spending money is a Mind set. Place signage everywhere for you to remember if you have to – Place a sign in your office, put notes on your computer, or even in your purse or wallet if you have to , to remind yourself your goal of not spending money unnecessarily.

Think in terms of accomplishing small goals to work towards your main goal.  If you want to save $50,000 to invest – well that seems like a task that is very hard to accomplish for most of us. But if you think smaller it becomes much easier. I like to save $1000 at a time. When I reach that $1000 goal I invest it. Do that 50 times and you have reached your goal.

Another way of thinking about this is every dollar you spend unnecessarily now will cost you a lifetime of income. Spending $100 today will cost you about $16 per month in income at retirement or will reduce your income by $200 per year in retirement! That might not sound like a lot, but how many hundreds of dollars do you spend unnecessarily each year? Smokers or expensive coffee drinkers can easily spend $4 a day or $1,500 a year on their habit – that equates to 15x$100 or $240 per month in retirement income or $2,800 per year in income – Your habit for 10 years could cost you $2,400 per month or $28,000 per year in potential retirement income.  As you can see, your choices today can have “Compounded” effects on your future! This is just one small item that I used for an example, take a moment and try to reflect on your habits and determine just where you are potentially spending your future unnecessarily. Most of us will be surprised as to just how much money we are spending on things we really don’t even need.

 

So, in summary we should all think in terms of any money we have as being a vessel to earn future income. When you spend it ( yes, I realize sometimes it is absolutely necessary) we lose the ability for our money to generate income. Always remember the “Golden Rule of Investing” prior to making a purchase and realize what you are really giving up to buy that sill fad or knickknack that will probably add little or no value to your life.

Thanks for reading and be sure to share your thoughts and comments with us.

 

Why I became a Dividend Income Investor

When my wife died I realized I still had two minor children living at home

My main personal motivation  for becoming a Dividend Income investor was the death of my wife. When my wife died I realized I still had two minor children living at home that I now had the sole responsibility for. I had two other children that were grown and married with good jobs so I knew they would be okay but what about the two minor children? I wanted to ensure my two youngest children were provided for. Reviewing my Investments I realized that even with leaving my two youngest children the entire Insurance policy I had would not be enough to support them for more than a could make it for a minimum of six years financially to ensure their well being. So this is when I switched couple of years. My youngest child was 14 years old at the time so my thought was that I needed to ensure they I sold most stock that was paying dividends below a 5% yield. My main focus became providing enough income for them to live on should anything happen to me. This meant sticking my investing neck out and taking on some risks that I hadn’t been willing to do.  I increased my average yield from less than 4% to right at 10%! Now I know what many will say – Why be so risky buying higher yield stocks when everyone says they are “Yield Traps” or “very risky”.

Amazingly what I discovered was that my new way of investing was not any more risky than my previous “safe” style yet I was bringing in right at three times the amount of monthly income. Since I was not in need of the extra income it was being reinvested into even more stocks. In other words my income was now compounding about 2 times faster than it was previously and it did not take me very long at all to make sure that my monthly income goals of providing for my children were met.

Did I have any failures? Sure, a couple of stocks that I purchased cut their dividends but I simply sold them and bought other stocks that were paying similar , if not more in Dividends than the stocks that I was replacing. A few stocks, I kept in spite of the dividend cuts. An example is a stock that I purchased during the oil bust. I remember one in particular was paying over 30% in dividend yield and after the cut I was still receiving a yield in excess of 15% so I decided to keep it. My reasoning was that a 15% yield is great by any measure, and that the company having reduced its dividend was in much better shape financially. Of course by practicing “risk mitigation” (see chapter —-) I had not put an excessive amount of my investment money at risk, even if I had lost every penny of that stock. I am now near three years into my new style of Investing so I am sure you would ask , do I regret switching to my new style of investing that I call Dividend Income Investing? The answer is absolutely not.

My Dividend income has increased almost every single month. Now of course you have to be smart and selective and make sure not to get too greedy with the yields. A portfolio yielding 8-10 % is quite doable. One of the first things you have to look at is the yield out of whack with the Sector it is in. Many stocks like MLPs, REITs and BDCs naturally pay out more in Dividends and Distributions. This is so because they are either passing on taxes to you, or because they are required to pay out distributions as a percentage of their Revenue. The other very important step is to do a little (or better a lot) of research to make sure the company is on solid ground and is not in danger of going bankrupt or drastically cutting its dividend. You don’t have to be an expert in the Charts and financials of each company, much of which is very confusing to the average investor but I have found a great way to research companies is to read every single article you can find before investing.  I even like to read the comment sections below the articles to see if the average Joe agrees with the author’s conclusions. Once I have determined the company as a safe investment then I act upon it.

The amazing thing is my portfolio generates much more than it would otherwise and with the extra dividends I can purchase even more stock which helps to make the Portfolio safer each and every month as well as grow in value!

Now I am not an Financial Advisor, so I can’t say my method will work for you, but what  I can say it has worked very well for me.

Please feel free to share your comments below, I look forward to hearing what you think.

 

 

Investing For Specific Goals

“She wanted to earn enough money to cover the rent of the apartment for the rest of her life.”

A Poster on a popular Money Forum I follow had asked for advice. She had just sold her home and had $225,000 in proceeds to Invest. Her dilemma was that her Financial Advisor seemed to be less than enthusiastic about helping her. She was selling the home and moving into an apartment. The apartment’s rental rate was

e$1,300 per month. She wanted to earn enough money to cover the rent of the apartment for the rest of her life. Wisely – She didn’t want to be told “Invest in Bonds” or Invest in an Index Fund because she knew it would not give her the Income she needed to cover her rent.

I knew I could help her. I had recently been through a similar experience. So I shared with her on how I would handle the problem.

First thing to be done is to determine how much of a yield would be required to generate the $1,300 a month in rent.  So doing a quick check shows that she needs to earn a 7% yield from her investments in order to the required $1,300 per month.

Here was my advice:

Buy individual stocks. Use the Dividend Income Method. That is stocks that pay higher yields than most because she needs income today – not twenty years from now.

For Diversity and risk mitigation we identified 27 stocks of various yields that would help reduce the risk of losing large amounts of money should the unthinkable happen. This came out to an average  amount of $8,333 per stock. I did end up weighting the higher yields slightly to ensure she met her goal.

So what I ended up with is: 10 Stocks @ $9,000 each, 16 stocks @ $8,000 each and 1 stock @ $7,000.

Here are my choices:

Continue reading “Investing For Specific Goals”