I cannot imagine ever feeling fully financially safe. It seems like everything can be taken away in a moment at any time. Technically my portfolio has hit the magic number that I should need to retire, but I spent so much of my life struggling financially, that I can't bring myself to believe it. I see homeless people on the street and fear that could be me -- and the orange loon toying with the economy unchecked like its one of his bankrupt companies doesn't help.
I have come to love dividend stocks as well, especially now that I am at an in-between place where I can't figure out if I am unemployed or retired. The ones I have are not flashy, but they pay me consistently, even when the market is down and keep me from panicking. I do very little trading; I buy and sit on them. Between the individual stocks and the funds I have they comprise over 80% of my portfolio. The dividends from funds get reinvested and the dividends from individual stocks I take quarterly. I don't know if that is considered a good strategy, but it seems to be working right now.
I still mail checks. There are a few of my bills that I pay online, but there are others I don't trust to do that. And I enjoy the process of writing out payments on my cute checks, and I love the stamps. I guess I'm a nerd in that way, but it also helps me keep track of my money better. Checks have gotten more expensive, I'm guessing it's because fewer people use them now.
Question: If you are changing your asset allocation, 70/30 to 60/40, doesn't that mean you are creating a taxable event by selling 10% of your equities? Or is there a way to adjust your asset allocation without creating a taxable event and losing money on each transaction?
Buying my own home was the smartest money decision I've ever made. From the very first month I wrote out a rent check I thought, this is a mug's game, and I made a goal to buy a home as soon as I could. As it has turned out, I would not be able to afford to still live where I live had I not bought my home (a studio co-op apartment) thirty years ago. Rent on the same space would cost more than three times as much as the carrying costs for my apartment (and my home is now worth almost three times what I paid for it).
Thank you for this. So many articles and commercials try to sell you on hiring an advisor, you can start to feel like you're missing the boat if you don't. But I've seen some bad advice from advisors. And I also think, why should I pay someone a percentage of what I've already saved before hiring them?
My strategy has been to hold Dividend-paying stocks as a hedge so that if the market drops I don't have to make withdrawls when it's down;I can just take my dividends. Roughly half of my savings are in individual dividend-paying stocks, and they pay me (annually) almost as much as my SocSec. So far it's working.
This is something that worries me, but I can't see myself voluntarily moving to retirement community. I have a friend in Florida who has and loves it. But I spent over 30 years caring for elderly relatives and in that time I haven't seen a facility I'd want to move in to. Someday I might not have a choice, but for now I just hope I never have to make the choice.
Comments
I cannot imagine ever feeling fully financially safe. It seems like everything can be taken away in a moment at any time. Technically my portfolio has hit the magic number that I should need to retire, but I spent so much of my life struggling financially, that I can't bring myself to believe it. I see homeless people on the street and fear that could be me -- and the orange loon toying with the economy unchecked like its one of his bankrupt companies doesn't help.
Post: Feeling Secure
Link to comment from May 3, 2025
I have come to love dividend stocks as well, especially now that I am at an in-between place where I can't figure out if I am unemployed or retired. The ones I have are not flashy, but they pay me consistently, even when the market is down and keep me from panicking. I do very little trading; I buy and sit on them. Between the individual stocks and the funds I have they comprise over 80% of my portfolio. The dividends from funds get reinvested and the dividends from individual stocks I take quarterly. I don't know if that is considered a good strategy, but it seems to be working right now.
Post: You’ve Come a Long Way, Baby
Link to comment from May 3, 2025
I still mail checks. There are a few of my bills that I pay online, but there are others I don't trust to do that. And I enjoy the process of writing out payments on my cute checks, and I love the stamps. I guess I'm a nerd in that way, but it also helps me keep track of my money better. Checks have gotten more expensive, I'm guessing it's because fewer people use them now.
Post: It’s 2025. Do you send checks by mail?
Link to comment from May 3, 2025
Question: If you are changing your asset allocation, 70/30 to 60/40, doesn't that mean you are creating a taxable event by selling 10% of your equities? Or is there a way to adjust your asset allocation without creating a taxable event and losing money on each transaction?
Post: What to do as the Bear Approaches
Link to comment from April 13, 2025
Buying my own home was the smartest money decision I've ever made. From the very first month I wrote out a rent check I thought, this is a mug's game, and I made a goal to buy a home as soon as I could. As it has turned out, I would not be able to afford to still live where I live had I not bought my home (a studio co-op apartment) thirty years ago. Rent on the same space would cost more than three times as much as the carrying costs for my apartment (and my home is now worth almost three times what I paid for it).
Post: Rent Forever?
Link to comment from January 11, 2025
Thank you for this. So many articles and commercials try to sell you on hiring an advisor, you can start to feel like you're missing the boat if you don't. But I've seen some bad advice from advisors. And I also think, why should I pay someone a percentage of what I've already saved before hiring them?
Post: Hire an Advisor?
Link to comment from January 11, 2025
My strategy has been to hold Dividend-paying stocks as a hedge so that if the market drops I don't have to make withdrawls when it's down;I can just take my dividends. Roughly half of my savings are in individual dividend-paying stocks, and they pay me (annually) almost as much as my SocSec. So far it's working.
Post: How do I invest for Dividend Income? Should I?
Link to comment from October 20, 2024
This is something that worries me, but I can't see myself voluntarily moving to retirement community. I have a friend in Florida who has and loves it. But I spent over 30 years caring for elderly relatives and in that time I haven't seen a facility I'd want to move in to. Someday I might not have a choice, but for now I just hope I never have to make the choice.
Post: What I Saw With Meals on Wheels
Link to comment from September 7, 2024