Weekend Reading – July 20, 2014

happyweekendI’m getting this post out a day later than I had planned, which pushes back some other articles. But that’s okay. We’re in the thick of summer and it’s meant to be enjoyed!

I’ve certainly been busy over the last few days, which is why this is coming out late.

I met my best friend for lunch on Friday at a wonderful sub shop called DiBella’s in Ann Arbor. One of my favorite spots, and not expensive at all. After lunch I spent around four hours at the Ann Arbor Art Fair, which is just massive. It was just a great time and almost completely free, minus the costs for a shuttle. Who says you can’t have fun when you’re living frugally? And I’ve already decided that A2 (as localites refer to Ann Arbor) is going to be where I finish my run to financial independence, with a move to the city likely occurring later this year or more likely early next year.

Then I spent all day Saturday at my parents’ house for a cookout and a picture party. They just got back from an Alaskan cruise and wanted to share some memories. Good stuff.

Today, I’ll be meeting my parents out at Lake Fenton for a day on their pontoon boat. Another awesome day of pretty much free activity, and on the water no less. It’ll be six of us out there for some fun in the sun.

Anyway, I’ve got a couple of really great articles coming out over the course of the week. I’m super excited to share my perspective on some issues and I hope you guys really enjoy those posts.

I hope you’re all out there making the most of the summer. I’m personally having one of the best summers of my life. I guess I took things for granted down in Florida because the weather is pretty nice all year long. Up here in Michigan, however, there’s this sense of urgency. You want to enjoy outdoor activities as much as possible while the weather is beautiful.

In the meanwhile, I’ll leave you all with some weekend reading! I’ve recently read and enjoyed all of the below articles. I hope you also find some enjoyment in them. 

Is Mr. Money Mustache Ruining Your Marriage?
MMM posted this great article which was basically an email exchange with a rather unhappy spouse to a budding Mustachian. I found it really interesting to read the perspective on someone that isn’t quite as gung-ho about frugality and delayed gratification. Although, I think MMM summed it up best with this quote: “Successful frugality must come from an alignment of philosophies, not an ever-stricter regime of bean-counting.”

Seven Dividend Stocks I purchased for the long-term
Dividend Growth Investor names seven great companies he recently invested in, and I just so happen to have recently purchased shares in one of these companies myself. Proud to be a Deere & Company (DE) shareholder with DGI!

Visiting Home After Long Term Travel
Chris and Angela shared their experiences with a recent trip back to the States to visit family and have a little fun. They concluded, interestingly enough, that they missed Thailand and plan to move back for at least another year. I’m personally excited to visit Thailand at some point and investigate the country as a potential spot to live in for a while. However, this is still far off in the future for me, especially with a little niece coming into my life here very soon. But I’m looking forward to living vicariously through Chris and Angela in the meanwhile, reading about their adventures.

Recent Buy: July 2014
Ryan recently bought shares in a company that just so happens to my largest investment. Glad to have you on board, bud! Ryan’s making some great progress with his portfolio, and his dividend income is increasing at a rather rapid pace.

Make every day a Mandela Day
Richard Branson reminded us that every day is an opportunity to make the world a better place. Couldn’t agree more!

What is Normal?
Zee reminded us to question normalcy, and the value of it. What is normal? Is normal good or bad for you? I think normal, for the most part, sucks. Just because society deems something normal doesn’t make it right or good. We can see that all around us, with the old 9-5 till 65 being one of the best examples.

Canadian Century Club Dividend Stocks
DivHut runs down some Canadian companies that have been paying out dividends for over 100 years. I’m a very happy shareholder in two of them!

How Exciting is Your City?
This article was pretty timely, as I spent time down in Ann Arbor on Friday for their massive Art Fair. But I was also secretly scoping out the scene to decide if I wanted to eventually settle down there and adopt the city as my new (permanent?) home. I lived near downtown many years ago, but it’s changed quite a bit since. I totally fell in love with the city. I don’t live in an exciting city (or even a city at all) right now, but I will after I move. Ann Arbor is vibrant with museums, live music, fantastic restaurants galore, some of the best public transportation in the state (goodbye, Corolla?), a highly walkable and bike-friendly downtown, a comedy club, a ton of culture and young population due to the presence of the University if Michigan, a great sports scene, and close proximity to an airport.

Why Job Burnout No Longer Scares Me
This was a good reminder on how freeing living below your means and building up some capital can be. I had the same experience about two years into my journey once the dividend income started to become fairly serious and the portfolio’s value had climbed to a fairly respectable level. I felt almost invincible. The worries of what would happen if I were to be fired melted away, and so did the burnout. I knew I was working there because I wanted to be there (to keep building the portfolio) not because I had to be there (because I couldn’t pay rent otherwise). Of course, the burnout eventually did happen anyway, but simply because I found activities in life (namely, this blog) that I wanted to work on instead, not because of worry.

10 Stocks on My Watch List
Bert shared some stocks on his watch list, and I’m personally invested in quite a few of them. So I’m obviously a fan! I think some are more attractively valued than others, and perhaps some are better opportunities. But they all look fairly solid.

$2,111,481 My Net Worth Update July 2014
Yes, that number is correct. Asset Grinder has apparently been living up to his name, grinding away for some time! Color me green, as I’ll likely not see a net worth like this until I’m an old man. Luckily, I won’t need one to be financially independent. But these numbers are impressive!

Top 5 investing songs of all time
DFW posted this funny tongue-in-cheek post about great songs that remind you to make great investment decisions. I’ll go ahead and add my favorite: “Counting Stars” by One Republic. Not specifically about investing, but rather about living a great life without the worry of money.

Weekly Purchase – DE
Another vote for DE, this time from Compounding Income. I’m glad to be in good company!

Dividend Growth vs Dividend Yield
Brent put together this really cool spreadsheet comparing a few different companies, some with higher yield and lower growth and others with lower yield and higher growth. I really prefer to play it safe and invest on all sides of the aisle, as I discussed when comparing these different types of stocks to stages of a rocket. And I think one has to consider their time horizon as well, as an investor who needs to start living off of their dividend income within the next five years is probably going to much prefer a stock with a healthy yield to provide current income over, say, a stock with a yield of 1.5% or so. I don’t think it’s growth vs. income, but rather considering your unique risk profile, time horizon, and overall needs. I personally like both. I’m greedy, and want a bird in the hand and at least two in the bush.

Is dividend growth better than yield? 
Dividend Life posted a great article along the same lines: dividend yield vs. dividend growth. The math is pretty amazing here, as are the spreadsheets and graphs. It’s difficult to quantify growth vs. current yield as you don’t know future growth rates, which is why I like the bulk of my portfolio invested in “Stage 2” stocks, because you get the best of both worlds with healthy current yield and pretty decent growth rates. However, I also believe some exposure to sustainable high yield and companies that exhibit excellent prospects for very strong growth makes a lot of sense as well. Again, one’s preference for one over the other will really depend on a lot of factors. I’m in a bit of a unique situation where I’m both a young investor, and someone who’s retiring in eight years. So I like to broaden my horizons as much as possible.

The Inherent Irony Of Minimalism
The Minimalists posted this great article reminding us that minimalism means different things to different people. The key is to find a level of minimalism that works for you and your needs, and gets you to where you want to be. There’s no sense living a minimalist lifestyle if you end up miserable. Likewise, owning a car or going out to restaurants multiple times per month doesn’t disqualify you as a minimalist. I’ve personally varied my level of minimalism and frugality over the years, and I think it’s a constant tweaking and learning process. And that’s probably at least half the fun.

You Will Read These Money Jokes AND LIKE THEM!
J. Money put together an awesome list of money-related jokes. I think my favorite is probably the BMW driver with the arm that’s been ripped off. Poor guy lost a Rolex!

July Stock Purchases
Kipp shared some of his most recent stock purchases, and there’s some really great names here. Looks like I have another fellow shareholder in DE. Nice!

Goals For 2014 Checkup
Henry reviewed the progress he’s making on his goals for 2014, and thus far he’s two-for-five. Not too bad considering that some of his goals were rather personal in nature, and his financial goals were quite aggressive. Plus, he has the back half of the year to go. His net worth advancement is particularly impressive, in my opinion.

My Watch List for July 2014
Another watch list, Passive Income Mavericks shared some excellent stocks for consideration. It looks like DE showed up again here. I think I need to add to my position already. The popularity might end up raising the stock price before I get a chance to buy some more!

Are You Living The Life You Want?
A great post here by Joe. This reminds me that life is short. I’m so glad that I decided to leave behind a career that wasn’t fulfilling me for something that I enjoy a whole lot more. I’m not making anywhere near the money I was making before, but if there’s anything I’ve learned in the last four years it’s that money definitely does not buy happiness. It can buy time and freedom, however. Which is why I’m still so aggressively pursuing financial independence.

Investment Income Update – July 15th 2014
Retire Before Dad updates us on his progress, and it looks like he’s doing great. His forward-looking dividend income is now up to $372.77 per month. That covers a good chunk of my bills right now. Awesome work.

Full Disclosure: Long DE.

Thanks for reading.

Photo Credit: gubgib/FreeDigitalPhotos.net

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66 Comments

  1. Jason,

    I’m glad to hear that you’ve been having a meaningful and relaxing weekend. BIG congrats on deciding the area of your new home base! We have funny local terms for things here too, like ‘North Hollywood’ is ‘NOHO,’ and you never say ‘interstate’ or even ‘freeway,’ it’s always ‘THE 5’ or ‘THE 110.’ I hope you have an amazing day on the lake today and I’ll be checking out some of these articles you’ve kindly posted. Thanks for the mention, the continued support has been extremely motivational and I’m so happy with my results through consistent investing so far!

    All my best,
    Ryan

  2. DM,

    Glad to hear you’re enjoying the summer. I grew up in the Midwest and I can relate to enjoying the summer while you can. Soon it will be Fall (aka football season) and then as they say in Game of Thrones…”Winter is coming”.

    Regards,
    Dear Dividend

  3. Thank you DM for including a DivHut article in your weekend read list. A lot of great, inspirational and motivating articles listed. Just keeps me hungry for those dividends. Thanks again.

  4. Gotta check out that Mr. Money Mustache article – I have a feeling I’ll learn something valuable for the journey out if debt for my husband and I.

    We live even further north than you, so we are also furiously busy getting outside!! I’ve recently kinda been “eh” about blogging and I bet that’s why. When it’s -30 out, I might be happy to have my blog!!

  5. Glad you are enjoying the summer in Michigan! I don’t head over to the Ann Arbor area too often, my closest family lives in Plymouth so I actually haven’t spent time in Ann Arbor.

    Also, thank for for the shout out on the stock purchase article, I appreciate it!

  6. Interesting discussion over there at MMM! The weather has been pretty awesome and it’s a crime not to enjoy it! Spent the day yesterday with five other friends I’ve known since childhood. Lazy day at the lake, walking, swimming, chatting. Got home thoroughly exhausted but energized all at the same time! Made me realize too much time at the computer is not such a good thing (Not that I didn’t know this already, but you know…)

  7. DM,

    Thanks for including us on your weekend reading list. One of the excercises I have started performing everytime review a stock is the “Do a lot of people in this community own this stock” review. I have found it helpful in identifying some new investments that I may be missing the boat on and that I should look into further. It seems like every DGI as some holdings in either WFC or one of the Canadian banks and since I have that hole in my portfolio, I think that is where my next investment is headed.

    Enjoy the rest of your weekend in Michigan. Pontoon boating is always a fun time and is very relaxing. Hopefully the weather is nice for you today! Thanks again for including us in your reading list; I am looking forward to your next series as articles.

    Bert, one of the Dividend Diplomats

  8. It sounds like you’re having an amazing summer in Michigan, Jason. I definitely remember how special summer was when I was growing up in Massachusetts. We’re actually having a mild summer in Nashville, so it’s been great to spend more time outside! Thanks so much for including my post. Enjoy today and I’ll look forward to reading your new posts this week.

  9. Thanks Jason for including my article. Yeah, I agree: we need to run to buy Deere before its price shoot 😉

    Glad you are enjoying summer! Lets make the most of sun-shine!

    Have a good weekend!

  10. Looking forward to the upcoming articles. Thank you for the plug for my “Top 5 investing songs” post. I was listening to music out in the garage and had it nice and loud. It reminded me how powerful music is. It also reminded me that we don’t have to always be so serious.

  11. DM,
    Thanks for mentioning my monthly update in your post. My monthly forward income is on track to meet my goals this year, especially with this new rental. Can’t sit idle, more work to do! This summer is not too hot in the DC this year, so we are having some good times too. I love summers at the pool.
    -RBD

  12. Ryan,

    I’d be very happy with the results thus far if I were you too! You’ve done really well. Keep it up. 🙂

    Yeah, Ann arbor has like five or six nicknames. A2, A Squared, Tree Town, The Town, Ace Duece, etc. Cool stuff. I’d be a “Townie” if I lived there. Or an Ann Arborite. It’s a really neat college town. I fell in love!

    Hope you’re having a great weekend over there. And no problem on the mention.

    Cheers!

  13. Dear Dividend,

    Winter is always coming up here in the North! 🙂

    But I’m definitely enjoying the beautiful weather while I can. It’s been in the high 70s or low 80s with sunshine almost every single day. I don’t remember it being this nice, but I’ll take it when I can get it.

    Hope you’re having a great summer where you’re at as well.

    Best regards.

  14. DivHut,

    I’m always hungry for dividends, my friend. I’m like the Hungry Hippo, but I’m hungry for dividends rather than marbles. 🙂

    Best wishes!

  15. Kirsten,

    I hear you. I haven’t had nearly as much time over the last few days to write when the outdoors and associated events have been beckoning.

    I would definitely check out the MMM article, though. Really interesting to hear from someone with a totally different perspective on life and what’s important.

    Have a great rest of the weekend.

    Cheers!

  16. Kipp,

    No problem at all. Glad to include you!

    And I would definitely check out Ann Arbor if you ever get a chance. It was either Grand Rapids or Ann Arbor for me. I knew that when I decided to move back. But I think Ann Arbor offers a lot of big city amenities with small city accessibility. It’s really just a cool, hip town.

    Best regards.

  17. Debs,

    A lazy day at the lake sounds awesome! I’m going to enjoy one today myself. 🙂

    That discussion over at MMM was interesting. Not sure if I agree with the troll assessment, but I do like to read about other perspectives.

    Take care!

  18. Bert,

    I agree that looking at what other successful investors hold is a nice starting place. We certainly do that with big investors, so it’s nice to also do a peer review.

    The weather is perfect today for a little pontoon action. It can’t be any warmer than 80 right now, with plenty of sunshine. Gotta wear a hat to make sure my head doesn’t get burned! 🙂

    Glad to include you. I wish you and Lanny the best of luck over there with continued success with both blogging and investing. 🙂

    Best wishes.

  19. Hi DM,

    Good reads right there. I was particularly interested in the dividend growth vs yield calculator, the table was really useful as a guideline for what to look for. I wrote a post a while ago about this precise issue, dividend growth, even when high, usually takes a long time to catch up with a higher dividend.

    Looking forward to more updates!
    Dividend Venture

  20. Addison,

    Glad to hear you’ve had a mild summer down there. That’s awesome. I’m sure it’s great to enjoy a nice summer in the city. 🙂

    No problem at all including you. Hope you enjoy the rest of the weekend!

    Take care.

  21. PIM,

    Nothing run likes a Deere, but lets hope that’s not the same with the stock price right now. 🙂

    You have a great rest of the weekend as well.

    Cheers!

  22. RBD,

    Glad to hear you’re having a great summer down there as well. Looks like we’re all pretty lucky this year! 🙂

    Good luck with the rental property. Hope it works out for you!!

    Best wishes.

  23. Ann Arbor is indeed a beautiful city, I had the privilege of visiting back in 2000. I didn’t know the locals call it “A2”, that’s really funny. Another cool thing about Ann Arbor and the area in general is the Indian restaurants. I remember there being quite a few restaurants serving delicious Indian food at affordable prices.

    So, are you thinking of getting an apartment first, or actually buying a house? I’m curious to hear about your plans.

  24. I really enjoyed the “is dividend growth better than yield” post.

    I obviously know and understand the concept, but it’s refreshing to see the math put out there to help put things in perspective and create a “duration” ladder of sorts within my portfolio to see it grow over the next few decades.

    I’ve always erred on the side of slightly favoring current yield over dividend growth, because I think investors may be overvaluing the future (i.e. betting on an 8% dividend growth rate to continue for the *next* 10 years given an average 8% rate in the past 10 years…). However, I believe all of them have their place within a well diversified portfolio.

    I still really love the rocket model discussed in an earlier post. I think the stage 1/2/3 framework really simplifies the importance of diversification (not by industry, style, or sector necessarily) in a portfolio for long-term performance and illustrates how even a dividend growth goal can be achieved through stocks with growth profiles.

  25. my dividend income exceeds my job income I save/invest a good deal of my job income I never never use or count my dividend as income I reinvest my dividends in one form another so when you say you investing over 50% OF your income you should not count dividend inome as income until the fat lady sings and you live completely off dividend income anything short of that is padding the real story

  26. Thanks for the mention buddy! Must be nice to chill out out the boat with the grill going! make sure u cover up that dome. I just caught a nasty burn on the top of my head and now it looks like I have a major dandruff problem!

    Good Day and Grill On!

  27. Glad you’re enjoying the summer – a day out on a boat sounds lovely 🙂 and some interesting reads there, thanks for sharing them.

  28. Your mention of Ann Arbor struck a note with me in agreement. I always picture when I retire/FI it will be in a college town, they offer so much to do with the arts, concerts, sports, and places to eat and drink. I’ll probably pass on Ann Arbor due to the cold, but I like your choice none the less.

  29. DividendVenture,

    Yeah, when one is investing in stocks with a lower yield, but higher growth, the timetable is very important. If you don’t have the time to let these stocks mature then it probably won’t work out in your interest. But as I’ve said before, many of the stocks we all know and love today (JNJ, KO, MCD) didn’t look like they do today. The smart investors really picked them up when the yield was 1.5% or 2% or whatever, but the growth was really high. So you capture that growth on the front end and the heavy income on the back end.

    Cheers!

  30. Spoonman,

    Yeah, Ann Arbor is really a nice town. And the restaurants are really wonderful. There’s this world-class deli there called Zingerman’s that serves up some awesome sandwiches. Expensive, though.

    And I think A2 is one of the few cities in Michigan that would be possible to get around in without a car. Difficult, but possible.

    As far as housing goes, I’m not sure. I always prefer renting over buying for a number of reasons. Not only is it generally cheaper in the places I’ve lived in, but I prefer the lifestyle greatly. However, Ann Arbor is really unique in that renting is quite expensive because you have this influx of college students living off-campus, driving up rents. I have no interest whatsoever in owning a house. So if I were to buy, that leaves condos. And I look at condos as investing in a really poorly run business. And I think they tend to mix the worst aspects of both buying and renting into one package. But there are some pretty attractively priced condos in Ann Arbor that would probably beat renting over the long run. But that all depends on how fast rent rises against property taxes and HOA dues (some of the HOA dues are very high), as well as what kind of issues the property may develop. So there’s a lot of unknowns there.

    Bottom line, I’d really prefer renting. And that’s what I’m going to go after first. But it depends on what’s available in what location. I’d prefer to live near downtown and/or public transportation to make the possibility of getting by without a car feasible.

    Best wishes!

  31. Ravi,

    Well, I like the bulk of my portfolio to be allocated to stocks with a 3%+ yield with 6-10% growth rates because I feel that gives you the best risk-adjusted returns for the most part while allowing you to enjoy both good current income and solid growth in that income. And it’s quite possible that the growth rates with some companies won’t pan out as expected, meaning that your valuation might be inaccurate.

    But as I was pointing out before, many stocks we know and love today didn’t just start out with 3% yields and 6-10% growth rates. They started out with 1-2% yield and 10-20% growth. And then they eventually matured into what they are today. If you can identify those stocks early enough you capture the best of both worlds. But because I don’t have a crystal ball I simply diversify my portfolio across all three stages so that I can enjoy both current income and growth in that income, averaged out across the entire portfolio.

    Best regards.

  32. que-que,

    I disagree.

    I don’t look at it that way. As long as it’s income that can be used for whatever and the taxman is taxing it as such, it’s income. Just because I reinvest it doesn’t mean I have to. To me, that would be akin to not counting any income I invest in stocks. I could just as easily take the dividends and spend them on my insurance costs, or fuel, or whatever.

    Income from a dividend, this blog, or a traditional job is all money to me. It all gets added up to one big number. Anything I have left over after paying bills gets invested.

    Cheers!

  33. getrichincanada,

    I agree! I can understand her plight, though the SUV talk had me rolling my eyes. It’s quite possible that her and her husband are no longer compatible. And there’s nothing wrong with that. People sometimes grow apart.

    Take care!

  34. Asset-Grinder,

    I was wearing a hat today. I once burned my head really bad after spending like six hours out on a boat. That sucked! Live and learn. 🙂

    Hope you’re enjoying what’s left of the weekend.

    Best regards.

  35. Nicola,

    I do love summer. It’s been nice to acclimate to the North slowly here. Giving me a chance to slowly adjust to cooler weather as the year goes on. 🙂

    Thanks for stopping by! Hope you’re having a great weekend.

    Cheers.

  36. Steven,

    I don’t blame you for passing up on Ann Arbor. It definitely gets pretty chilly in the wintertime. 🙂

    But I think college towns offer a lot. You’ve got a lot of the big city amenities, but with small town accessibility. So you can avoid some of the traffic, crime, and congestion issues common with big cities, but you don’t have to sacrifice the culture, people, or food. A win-win!

    Thanks for stopping by!

    Take care.

  37. Thanks for the wishes DM! Sounds like a perfect day for a boat ride. I can’t say that I have ever had a burnt head, but I can’t imagine that feeling too well. I am very jealous that you were out on the lake today.

    As always, keep up the great work. I am looking forward to your articles this week.

  38. Hi Jason,

    I guess great minds think alike, right? DE is really cheap right now, and in my “value” territory. While the future will be lumpy, Deere is not going to go out of business in the next 30 years, and will likely be earning much more than it is today.

    Thank you so much for featuring my article on my recent buys. And glad you are having a nice weekend. At the end of the day, spending time with people you love is very important, and is somethign that money cannot buy..

  39. DGI,

    Great minds do indeed think alike. 🙂

    I’m with you. DE is right in our wheelhouse here, and it’s possible it’s a “fat pitch” here, especially in relation to the other pitches we’re getting right now. I was lukewarm on the investment in the past due to the cyclical nature of the business, but, as you stated, the odds are great that it will not only be around 30 years from now, but also much more profitable.

    And time with loved ones is one of the greatest things in life. The good news is that while money can’t buy it, it needn’t to because it doesn’t cost anything. 🙂

    Cheers!

  40. Zee,

    No problem at all. Happy to support others in the community. 🙂

    Hope you had a great weekend. It’s a shame it’s over already. Time sure flies by.

    Best wishes.

  41. I agree with Dividend Mantra on this one as well. Dividends are taxed come tax time unless you have them in a registered account. Also, the investor can do what ever he or she wants with the dividend. They can spend it, reinvested back into the same stock, leave it in the account to reinvest with fresh capital or transfer it to another account. Income is income no matter where it comes from. That is why we are taxed immediately (job) or at tax time.

  42. Thanks for the mention…it is greatly appreciated! You’re right about there being a sense of urgency when enjoying the summer weather. It’s been pretty awesome here in the Northeast where summer can sometimes get too humid. Plus this winter was a monster. And I definitely agree that college towns offer a lot of entertainment options especially a big school like University of Michigan.

  43. Andrew,

    No problem at all! Glad to include you.

    Ann Arbor definitely benefits from U of M’s presence down there. And it keeps the city young, educated, and vibrant, which is awesome. 🙂

    Thanks for stopping by!

    Best regards.

  44. Okay, I’ve got to ask for all of us still working for “the man”. So, how many hours do you actually “work” each day now that you are living the life of leisure? HA, HA!

    Glad to hear you had a great weekend!

    Regards

  45. luckydog17,

    Ha! That’s a great question there.

    I plan to write an article at some point describing my typical day and how things work. But I think it’s accurate to say that I spend 5-6 hours per day between writing, emails, comments, and everything else. Of course, it’s not really “work” to me, but I think that’s a fair description of how much time I spend on all of this.

    Thanks for stopping by! Hope all is well with you.

    Best wishes.

  46. Hey Jason,

    Greetings from Ann Arbor! First time I’ve commented here but have been following your blog for 1 1/2 years now. Really impressed with what you are doing and wish I would have started DGI much earlier. I’m 2 decades older than you but do have a nice pension with my job. I had some money from a previous house sale that I “parked” in corporate monthly-paying savings accounts (Ford and GE, and a CD) that were paying 3-4% before the recession. After 2008 I needed to move that money into something appreciating and got into stock, a lot with your help in 2013, I didn’t know what I was doing for a couple years. My portfolio is similar to yours and I’m starting to see the growth of the dividends, so THANKS!

    Good choice on Ann Arbor to live, I’ve been here a long time and can help if you need housing advice, I know every neighborhood and work on campus, and it’s a great city, lots of choices with food, entertainment, and free stuff.

    JD in A2

  47. JD,

    Hey, thanks for stopping by! That’s a great story there. I’m sure the pension definitely helps. Add to that SS and even a mildly successful portfolio and you should do pretty well. 🙂

    Appreciate the offer for help. If you don’t mind, I would like to know what the best neighborhoods are for quality of life. Specifically, I’m interested in proximity to downtown while also not paying through the nose. I’m also interested in possibly living car-free down there. I’m not totally sold on that idea, but I’m open to it. I’ve kind of targeted two areas: The West side area near where Stadium meets Pauline and down on Washtenaw west of 23. The West Side is closer to downtown, but Washtenaw has that nice corridor with shopping, groceries, restaurants, and three buses run up and down Washtenaw. Those areas also seem to have some affordable apartments near bus stops.

    Any areas you think might be better?

    Thanks again!

    Best regards.

  48. Hi DM,
    Thank you for including my article “is growth better than yield?” in your roundup. I had a lot of fun writing it and remembering some math along the way so I’m glad it was appreciated!

    I hope you find a great (and cheap) place to live in Ann Arbor. I’ve not been there recently but my impression from hearing people talk about it is that it’s a great place to live.

    Best wishes!
    -DL

  49. DL,

    No problem. Glad to include you. I love math, so that was a great post. 🙂

    I hope I’m able to find a nice place down in A2. It’s a really great town, but the secret is out and so rent is pretty high. We’ll see. I might be able to offset that by living car-free, but I’m not totally sold on that idea yet. I love my little Corolla.

    Cheers!

  50. Hey again,

    Both those areas you mentioned are good, but I would lean toward the westside. It is closer to downtown, on the bus routes, and is more “Ann Arbor-ish” than the Washtenaw area. There are several large apartment complexes and I know some young professionals who have started there when coming to town. And that’s where I lived when I moved out of the parents house! The Washtenaw area gets pretty congested with traffic.

    You can also get cheaper apartments if you are willing to sublet when the students come and go on campus. There are also part-time jobs here if you want to work some too.

    Email me if you have more questions about the city and housing, happy to help out a fellow investor!

    JD

  51. JD,

    Appreciate the advice! I was also leaning toward living in the Westside. Definitely closer to downtown, and you’re more in the city. I found some apartment complexes on that side of town that seem pretty attractively priced, although they’re small. I’ll definitely keep your advice in mind when I eventually search down there. 🙂

    Thanks again!

    Best wishes.

  52. So how do you say “A2”? Do you say it “A Two” or “A Squared?”

    I’m so curious!

  53. Lila,

    That’s a great question. The A2 I was referencing there is “A Two”. However, “A Squared” is quite common as well. Other names for the town include Ace Deuce, The Deuce, Tree Town and The Town.

    But I think A2 “A Two” is most common.

    Best wishes!

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