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Feedback on my income/growth portfolio
Old 07-10-2006, 04:41 PM   #1
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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.


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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)
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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

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Re: Feedback on my income/growth portfolio
Old 07-10-2006, 06:02 PM   #3
Recycles dryer sheets
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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)

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Re: Feedback on my income/growth portfolio
Old 07-10-2006, 06:44 PM   #4
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Re: Feedback on my income/growth portfolio

KMI is going private so you'll have one less name to worry about.
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Re: Feedback on my income/growth portfolio
Old 07-10-2006, 07:00 PM   #5
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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?
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