Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Feedback on my income/growth portfolio
Old 07-10-2006, 04:41 PM   #1
Confused about dryer sheets
Join Date: Jan 2006
Posts: 6
Feedback on my income/growth portfolio

I posted this on Morningstar but thought I would post here also to get feedback. Any help is welcome!

I am trying to create a portfolio that creates over $200,000 of annual after-tax income and also grows the income stream over time. I have about $5 million to invest. Most ($4M+) is in a taxable account with $700,000 in an IRA. I have put together a paper portfolio in M* that creates about a 5.8% yield, has past dividend growth of about 15% and solid capital appr. potential. I will put the ordinary income producers in my IRA and reserve my taxable account for qualified dividends and a few other mostly tax favorable income producers like MMA.

I am still working on this paper portfolio and am investing about $100,000 in each investment. I am willing to take some additional risk for some additional income (ADVDX, VWEIX, PWI) but also want a core of 'safer' investments like GE, C. It is a bit heavy outside of US with some Canadian Trusts and some larger European dividend producers.

What do you think? I have used M*'s tools to look at holdings, risk, etc. I am still creating this (on paper first). Will keep cash in Vanguard tax exempt MM (because of my tax situation). I am 48 and want to able to retire very soon (I live in high cost area right now) on this portfolio.


BD1 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Feedback on my income/growth portfolio
Old 07-10-2006, 05:51 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2003
Location: Kansas City
Posts: 7,463
Re: Feedback on my income/growth portfolio


My first impression is - way too many positions. Then I remembered - I'm the guy who evacuated Katrina with 40+ DRIP plans in file cabinets.

So - plan wise - if you have no problem with this many - what's the management plan - take the dividends, let your winners run, maybe harvest a few tax losses along the way as the years roll by?

BTY - I'm in the core and explore school - 75% Target Retirement and I got Drips whipped down to 20+ with more positions to close out - I ran handgrenade roughly 40/60 - 40% divs/60% non cola pension first ten yrs - now in my 60's starting to tap IRA.

So - if you feel up to following that many positons - go for it.

One caution - be prepared for the interest cycle sensitive ones to give you some mental angst from time to time.

Party on.

heh heh heh

unclemick is offline   Reply With Quote
Re: Feedback on my income/growth portfolio
Old 07-10-2006, 06:02 PM   #3
Recycles dryer sheets
Join Date: Nov 2005
Posts: 156
Re: Feedback on my income/growth portfolio

No more dividend investing forum for you!.. You are probably going to get the same reaction here.

Honestly, I doubt your going to pull >4% annually forever safely. Now you could easily get 150k a year by simply taking the top 20% dividend payers of the S&P 500..

Also, you could get around 4% by doing a Siegel portofio of the top 10 dividend paying S&P 500 stocks that have raised dividends every year for 10 years. Doing this would include many of the stocks you already have listed: BAC WM C T CVX PFE ect.. (notice the high financial side)

trixs is offline   Reply With Quote
Re: Feedback on my income/growth portfolio
Old 07-10-2006, 06:44 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Gone4Good's Avatar
Join Date: Sep 2005
Posts: 5,381
Re: Feedback on my income/growth portfolio

KMI is going private so you'll have one less name to worry about.
Retired early, traveling perpetually.
Gone4Good is offline   Reply With Quote
Re: Feedback on my income/growth portfolio
Old 07-10-2006, 07:00 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2005
Posts: 8,945
Re: Feedback on my income/growth portfolio

Since most is in a taxable account, for a multimillion dollar portfolio, I would (and have) concentrated more on long term capital gains (the tax-deferred unrealized type) and not on dividends.

I didn't look up all your symbols, but are you thinking about market capitalization (micro, small, mid, large, humongous) and international/domestic and not just dividends?
LOL! is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Portfolio Allocation feedback requested chinaco FIRE and Money 3 04-21-2007 10:49 AM
SWR - Amortize your portfolio RgrGd FIRE and Money 5 03-28-2007 10:29 AM
eBay neutral feedback?!? Nords Other topics 14 01-03-2006 06:11 PM
Conservative distribution phase portfolio peteyperson FIRE and Money 13 03-22-2005 06:48 AM
Volatility in your Portfolio ESRBob FIRE and Money 5 03-03-2005 09:09 AM


All times are GMT -6. The time now is 08:58 AM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.