I’m going to leaving fairly early on Friday for a four-hour trip to Omena, Michigan, where my oldest sister is hosting her 30th birthday party. Obviously, I’m very excited to be able to participate in events like this easily now that I live back in Michigan. Since I’ve been back home I’ve been spending a lot of time with family, and it’s been really nice.
Since I am going to be gone for the weekend, and there’s no Wi-Fi in the rental beach house, I’m posting this article a little early. And that’s because I wanted to leave you guys with a little reading material while I’m gone for the next few days. I should be back to it sometime Sunday afternoon.
I hope you all have a wonderful weekend! I’ve got a few articles on the docket for next week, and I’m greatly looking forward to publishing them over the coming week. As always, thank you readers for all of your support! I couldn’t do it without you.
Below, you’ll find a short list of articles I’ve recently read and enjoyed. I hope you do as well!
Margin of Safety in Financial Independence
Dividend Growth Investor discussed how he’s building a margin of safety in his financial independence plan by diversifying his portfolio between a large number of individual businesses, investing in a wide number of sectors, focusing on high-quality businesses that not only raise dividends but should continue doing so for the foreseeable future, and also diversifying brokerages. He lacks a lot of fixed income exposure, as do I. However, that can change once bonds become more attractive.
Why Apple’s Overseas Tax Probe Is a Black Eye on U.S. Lawmakers
This article by TheStreet discussed how our government must come to some kind of solution that allows for some of the trillions of dollars that U.S. corporations are holding overseas to come home, face lighter taxes, and help our domestic economy. I’ve read a lot of solutions to this issue, ranging from corporate tax overhaul to a one-time tax holiday, but it seems our lawmakers can never get on the same page. What a shame.
The Perfect Dividend Stock
D4L recently fantasized about his idea of a perfect dividend stock, only to come back down to reality as no such thing exists. However, he did list a number of great stocks that have different characteristics of current yield and dividend growth.
Learning From Our Mistakes: How To Kill Zombies
Work To Not Work posted an article on how you need to keep your brain active to avoid “brain drain” and become one of the zombies. I personally started to feel like a zombie at my last job near the end, where days just seemed to blend into one another as everyday tasks took over my life. Certainly, my job involved a lot of unique challenges as every car repair was a bit different. But the basics of the job, once learned, never really change, and it’s easy to become a zombie at that point.
Less, Less…
Thanks to a reader by the name of Lila, I just found this blog. The Minimalists focus on, well, minimalism. And this post was a succinct reminder on why live with less: We have more room for what really matters.
I just spent $400k Into an Overvalued Market!
Asset-Grinder just invested six figures into the market! I only hope I can one day be in a similar position where I have the opportunity to move this type of capital around. I certainly can’t fault him one bit. He compares other asset classes (Hint: Where else do you go with your cash?) and spent a while formulating his plan and purchases. I also feel no reservation investing in these all-time market highs right now.
May 2014 Dividend Income Update
My Own Advisor is on pace to earn $8,400 in dividend income this year, which is just fantastic. He’s been at this for a while, and you can see how steady progress yields literal and figurative dividends over time. His snowball is definitely moving along now!
Keira Knightley Reveals Shocking Salary
Not the usual type of article I link to, but I was really impressed by this. Keira Knightley, a well-known and very wealthy actress, only pays herself $50,000 a year citing a cheaper lifestyle as more fun and more approachable to other people in her life. You don’t hear of this kind of stuff around Hollywood types, so this was really interesting. Perhaps living below your means is becoming vogue?
Weekly Purchases – 06/03/14 + 06/10/14
All About Interest shows us where his investment capital has been going, and it looks like he’s been busy buying up shares in high-quality businesses. Nothing like staying consistent and sticking to a plan.
Income Update – May 2014
Passive Income Pursuit shares how his budget went for the month of May, and he killed it yet again. Over $6,000 in savings is a result of an above-average income and the ability to live below those means. Fantastic stuff!
The Only Rules You Need To Know
James put together an eclectic and interesting list of rules he likes to follow in life that help him succeed and focus on what brings him the most value. I especially liked the 1,000 hour rule. I agree that the difference of mastery between spending 1,000 hours of practicing a craft and 10,000 hours is much less than between 0 hours and 1,000 hours.
3 Ways To Build An Armadillo-Armored Portfolio of Blue-Chip Dividend Stocks
Tim shared a few different criteria he would recommend following if you’re looking for the most defensive portfolio of blue chip dividend stocks you can possibly create. Can’t say I disagree with his logic, although I have stepped outside these bounds by investing in banks and companies with much shorter dividend growth streaks. Good stuff, though.
Revamping Our Early Retirement Backup Plan
Retire by 40 shares his backup plan in case his online income dries up and his wife were to lose her job. I like his backup locations, including Florida and Thailand. I left a comment discussing some of the benefits of living in Florida, and all of the sudden started questioning why I left. Just kidding, but Florida does have a lot to offer. Although, there are too many older people living there for my tastes. I felt like the older population was sucking the youth out of me while I lived there!
The Dividend Screener
Dividend & Whisky did some fantastic work for all of us dividend growth investors by putting together a nice stock screener based on David Fish’s CCC list. Really great stuff here. I ran a screen using some basic criteria on valuation, yield, and growth I like to look for, and sure enough the two ideas I’m already looking at – Baxter International Inc. (BAX) and Southside Bancshares, Inc. (SBSI) – showed up. I feel reassured.
The HOW and WHY of our Desired Portfolio
Income Surfer discusses his dream asset allocation and the thought process behind it. I agree with him on many points, including the attractiveness of index funds for the majority of investors out there, as well as his reasons behind a 0% allocation to bonds.
Now on Facebook…and Other Ways to Follow
Finally, Retire Before Dad is now on Facebook. He also has a number of other ways to follow and keep in touch, so give him a shout. I’m also on Facebook, as well as Twitter, RSS, and email.
Full Disclosure: Long BAX and SBSI.
Thanks for reading.
Photo Credit: gubgib/FreeDigitalPhotos.net
Hi DM,
Enjoy your time at the beach the coming days, and enjoy the family! I am guessing that weekends like these remind you that you made the right choice moving back north.
Also thanks for the mention, I really hope the stock screener will help all fellow dividend growth investors. to easily create a list of companies that are attractive enough at first glance to warrant a more thorough research.
Currently working on incorporating your feedback in the screener, and hope to be able to launch an updated version next week.
Best,
DW
Enjoy your weekend at the beach and spending time with family – that sounds like the perfect weekend to me 🙂
DW,
Thanks so much!
Yeah, I’ve been spending a lot more time with family since I’ve been up here. It’s been really nice. To be honest, my whole life is very different up here in Michigan. I was so tired all the time in Florida. I honestly don’t know how I worked 50 hours per week at the dealership, managed this blog, worked out, and still had time for anything else. I was often exhausted on the weekends. Many people may think I didn’t go out much to save money, but oftentimes it was just to rest up.
Thank you again for the screener. I think that’s just a fantastic and easy-to-use tool. And adding something for REITs would make it even more useful. I’ll be sure to use that often!!
Hope you have a great weekend.
Best wishes!
Nicola,
Thanks so much. I’m really looking forward to this. A 30th only comes around once, so it should be a lot of fun. I was lucky enough to have a great 30th myself, as my girlfriend planned a big surprise for me and had my parents fly down to Florida. It was very, very sweet. I’ll never forget that birthday.
Hope you have a great weekend as well. And best of luck with those goals of yours. I’m sure you’ll kill it!
Cheers.
Thanks for the mention Jason. Enjoy the lake man, I’m sure it’s beautiful now that summer arrived. I also enjoyed Asset Grinder’s article above. Save travels
-Bryan
Wow thanks for putting me on that reading list. I really didn’t expect it as I am relatively new to blogging and my writing skills are still quite subpar. lol. Your blog was one of my main inspirations in starting my own. Have a great weekend Jason and have a beer on me.
Bryan,
Should be a beautiful weekend. We’re going to do some grilling out, so it should be fun.
Hope you enjoy your weekend. I’m guessing the afternoon showers are starting to take shape by now, so stay dry!
Cheers.
A-G,
Glad to feature you. It’s great to have investors from all ends of the spectrum write about their experiences. You’ve obviously had a lot more success in building wealth than I have, and it’s great to see what that looks like from your point of view. Keep it up!
And thanks again for the email.
Best regards.
Thanks for the mention and enjoy your time with family. I love traveling but I hate being without wifi and being away from this great community. Have a great weekend!
JC,
Haha. I hear you. I’m not away from Wi-Fi very often either. But I probably wouldn’t have much time for writing and blogging up there anyway.
I’m sure I’ll be ready to get back to it after a few days with my crazy, but loving family. 🙂
I hope you have a great weekend too!
Cheers.
Hope you have a great time. I love it up there!
Have a safe trip DM! I get to make my next trip home at the beginning of July and I’ll get to meet my neice.
Take care!
KeithX,
Thanks, bud. It should be a lot of fun. My whole family is going, and we’re all a little crazy when we’re together.
I’ve never been that far north. Looking forward to it, though. I hope we get a chance to check out Traverse City. Never been, but hear it’s nice.
Have a great weekend!
Take care.
ILG,
Oh, that’ll be awesome! I’m meeting my new niece here at the begging of August when my little sister gives birth. Exciting times.
The circle of life continues…
Appreciate you stopping by. Have a great weekend.
Cheers.
DM,
Have a safe trip! Looking forward to reading your posts next week. I mention the work you do here to a lot of people at work and even one of the Supervisors today. Starting next week I am not going to be working as many hours and going to look into ways to improve my blog.
SWAN,
Thanks for spreading the good word! I really appreciate that kind of support.
And I hope you’re able to have more time to write. I really enjoy writing, so this is a dream come true for me. We’ll just see if I can keep it up. 🙂
Have a great weekend. Thanks for stopping by!
Best wishes.
Have a great weekend and Happy Soon to be Uncle’s Day!
Thank you so much for highlighting my article on Margin of Safety of Financial Independence. I am really lacking on bonds, and was hoping by now rates would be higher, so I can start putting money in fixed income before FI date. Boy was I wrong.
I really liked your previous article that talked how dividends reduce amount of capital at risk, since they are both Return of capital and return on capital. Too many people engage in theoretical discussions with what ifs, etc, which are very academic but are not very grounded in reality. Those people might not have gotten the beauty of your article, which is sad.
Anyway, hope you are having fun with the family. This is very important. And I was wondering, can you schedule posts for the future using wordpress?
DGI,
Thanks for stopping by!
I hear you on fixed income. It’s not that I’m against bonds, it’s just that rates aren’t attractive right now. And as long as that’s the situation we’re in I’ll remain committed to 100% equities. However, I also agree with you on the unlikelihood of SS being eliminated, and so I’ve got that as my ace in the hole. It’s a very pretty attractive investment when you think about it, although we don’t have any choice.
And thank you for the support in regards to my previous article. I couldn’t agree with you more. I always hate getting bogged down in academic discussions revolving around theory, and I really avoid them whenever I can. There is nothing to be gained through those discussions. My whole blog is designed around avoiding theory, as this is where the rubber meets the road. I’m not talking about what ifs; my blog and journey is about real-life investing with real-life money. And because this is real life, things work a little different than how they should in academic theory.
As far as scheduling posts, it’s possible with WP just like with Blogger. However, I often go over an article just before publishing it. I often think of 2-3 ideas after the initial draft, and will make changes along the way. I’ve set up scheduled posts with Blogger in the past and would find myself at work wishing I would have made changes, or found grammatical errors, etc. So I now like to publish posts after I feel pretty confident about the finished product. Of course, I still end up with issues even then. I probably need an editor! 🙂
Thanks again for the support. Hope you have a great weekend!
Best regards.
Thanks for sharing the reading list. Enjoy your trip and spending quality time with the family. Remember to keep those expenses down. 😉 Best wishes. AFFJ
After reading that article and seeing the pictures of Keira Knightly, she doesn’t look like she’s spending much money on food. Ha! It’s probably much easier to live on $50k per year when you probably don’t have to pay for things like clothes or a mortgage. I would be surprised if she didn’t own wherever she lived. But that’s surprising to hear that someone with that much money lives that simply…. Oh wait, Warren Buffett wins this frugal off, he still lives in his original house that he bought for $31,500 back in the 50’s.
Thanks for mentioning me in your weekly reading! I wish I was in a position to leave my job and pursue what I really want out of life like you have, but right now my goal is to own my own time, and the fastest way to do that is to keep working.
DM,
Thanks for the mention. Didn’t know you were on FB too. I need to spend some time on there and follow more people. On vacation this week, enjoying the time away from the computer, but still have phone access and wifi.
-RBD
Traverse city is very nice. Been there a couple of times. If you enjoy wine cherry republic has some very nice tasting cherry wine for around 10 to 15 dollars. If I remember consevracy or something like that is one that my wife and I enjoyed. I did my tax internship up there so I lived there in winter for about 4 months. Nice town! I am on a different beach currently enjoying the last couple days of vacation. I hope you enjoy your time on the beach!
AFFJ,
Oh, believe me, I’ve got the expenses down to a science right now. 🙂
Thanks for stopping by. Should be a great early summer weekend. I hope you have a great weekend as well!
Cheers.
Zee,
I’m with you. And $50k is still a lot of money for one person to spend, but compared to her peers it’s very, very impressive.
Buffett probably wins this round, though. His frugality is legendary. I read his biography and it was just nuts – using a dresser drawer for a crib. I have a lot of respect for the guy.
Hope you have a great weekend. Saving/investing your way to freedom is a surefire way to own your own time, and I’m still doing the same. I’m just working on something I enjoy right now. We’ll see how long it lasts!
Best wishes.
RBD,
I’ll be joining you on vacation here pretty soon, as we’re leaving the house in about five minutes. I won’t have any Wi-Fi or anything, so I hope I don’t go into withdrawal. 🙂
Thanks for stopping by. Enjoy your downtime!
Best regards.
Kipp,
Hope you enjoy the last days of your vacation. I’m always a big fan of beach time, and that’s something I’ll miss from Florida. However, I didn’t go to the beach as much as I would have liked the last year or so. You just take that stuff for granted, unfortunately.
I’ll definitely try to check out Traverse City and see what it has to offer. I’m excited!
Have a great weekend.
Cheers!
Thanks for the mention Mantra! Only $21k + to go to reach my goal. Hopefully I can get another $500 per year closer this year. We’ll see. Need to save more. May and June have been very expensive months for us.
Cheers,
Mark
Thanks for the mentioned Jason! I hope you enjoy the rest of your weekend and some of the great weather! Of course, the weekend is similar to your regular weeks now 🙂 Call me a bit jealous 🙂
Mark,
Still a long way to go, but you’ve made tremendous progress. And that progress will only snowball over time as your dividend income builds.
Looking forward to seeing how the year shapes up for you. 🙂
Take care.
Brent,
The weekend was great. It was a tad chilly up where we were at, but it was still a good time.
And you’re doing great over there. Nothing to be jealous of with that fantastic income of yours because you’re going to reach true financial independence much faster than I will! 🙂
But the weeks do blend in with the weekends a bit now. However, I’m much busier than I thought I would be, which is nice. I’m hoping it continues!
Cheers.
The dividend screener is the best thing ever. I’ve been looking for something like that for ages.
Justin,
I agree. That screener is really fantastic. I ran it not long ago with some criteria I look for and it was nice to see that the two stocks I listed on my watch list for this month (BAX and SBSI) showed up. 🙂
I hope you enjoy it. Thanks again to DW!
Take care.
Hey Jason, good to hear that you like the minimalists blog.
I was also shocked at reading about Keira Knightley giving herself a budget. Sometimes I don’t know what to believe from celebrities, because a lot of times their PR team can put out anything for publicity. But lets assume that it’s true.
The article didn’t go into detail but that is what I’m assuming happened. Given that her net worth is $50 million according to the Celebrity Net Worth website I think she paid her house and car in full, as well as appliances, and a set of clothing, underwear, and shoes. I assume that she doesn’t have any debt and has savings and invests her money. I can see how she could live on $50,000.
Dave Ramsey often says, “Think of what you could do if your home, car and credit card debts were all paid off.” If the story is true then good for her. There are so many celebrities, sport stars, and lottery winners that go broke. Its nice to hear of a celebrity who is wise with her money, especially given that she works in a volatile industry (lots of ups and downs).
Lila,
I actually think the whole Knightley story might have more truth than it would appear. And I only say that because frugality/living below one’s means is not exactly something to boast about for someone in her position. If anything, that probably makes her appear strange to some people.
But I agree with you. Once you have most of your big costs paid for (housing and transportation) and you have no debt, the rest is pretty easy.
Best wishes!
Hello Mr Mantra ! Perhaps I have missed it, I do not read the DM info everyday. I have not seen your thoughts on WIN, Windstream Holdings. It currently pays a 9.9 % div and is usually over 10%. The stock is generally going up. S&P Capital IQ gives the stock a 4 star rating. Do you have a problem with the stock ?
DaytonaDan,
I’ll be honest and tell you that I haven’t looked at WIN in quite a while. The last I knew it operates a business in a declining industry, had a payout ratio well over 100%, couldn’t grow the dividend because profits weren’t growing, and the balance sheet was very shaky. I haven’t looked at it in-depth since, but taking a quick look just now for the first time in a while shows a picture that hasn’t really changed much. The high yield is enticing, but keep in mind that that the risk is real.
Best of luck!
Take care.