#HYHRD; The income phase of ‘The Plan’ $STUDY #UPDATE #2

I have moved into the income phase of portfolio management, partially withdrawing each month from earned dividends *only* (leaving positions and principal untouched, except for ‘normal’ trading activity)!

In both of our individual brokerage accounts, I withdraw ~88% of the monthly dividends each month, or $175.00 from each account.

In my IRA account, I withdraw ~97% of the monthly dividends each month, or $775, with 33% of that amount ($255.75) withheld for federal taxes, leaving $519.25 for a net deposit. When I rollover my 401k in February these amounts will probably change again.

In my wife’s IRA account, I withdraw ~99% of the monthly dividends each month, or $875, with 33% of that amount ($288.75) withheld for federal taxes, leaving $586.25 for a net deposit.

In both of our IRA accounts, I just made a one-time withdrawal of the accrued dividends of $1500 from each account, with 33% of that amount ($495.00) withheld for federal taxes, leaving $1005.00 for a net deposit from each account. This is to help cover the expense incurred during the recent visit of our kids and grandkids. It was a great time, but we’re both still exhausted (and so is our checking account!). That’s also part of the reason why the monthly withdrawal amounts were increased, and I wanted to build up our checking account balance a little faster.

In my Roth IRA account, I withdraw ~94% of the monthly dividends each month, or about $125.

In my wife’s Roth IRA account, I withdraw ~97% of the monthly dividends each month, or about $300.

Any cash left in the accounts will be allowed to accrue for any upcoming stock purchases, etc., but I plan on keeping an amount equal to at least 1-2 months of withdrawals available in each account to cover any withdrawals for the next 1-2 months.

For both of our individual brokerage accounts, any amount in excess of the minimum required for 1-2 months of withdrawals will be transferred to my brokerage account via our joint brokerage account. These aggregated funds will allow me to make buys and pay only one trade fee instead of 2 for each buy, and the aggregation of our funds allows me to buy more. All purchases will be shared 50/50 into our individual brokerage accounts via our joint brokerage account. Any dividends or interest will be treated the same way.

This is not a permanent solution, however. I am only doing this until some of our monthly expenses are paid off, such as the furniture we bought when we moved here, my 401k loans, and any other monthly expense that might be eliminated or reduced. I should probably mention that all loans with the exception of my 401k loans are at 0% interest, because I don’t like to pay interest, I just like getting paid interest (i.e.; dividends!). My 401k loan re-payments are simply added to my 401k balance, although I do pay ~8% premium for the privilege.

This is the time-frame with the reduction amounts;


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#HYHRD; The income phase of ‘The Plan’ $STUDY #UPDATE #1

I have moved into the income phase of portfolio management, partially withdrawing each month from earned dividends *only* (leaving positions and principal untouched, except for ‘normal’ trading activity)!

In both of our individual brokerage accounts, I withdraw ~88% of the monthly dividends each month, or $175.00 from each account.

In my IRA account, I withdraw ~98% of the monthly dividends each month, or $675, with 33% of that amount ($222.75) withheld for federal taxes, leaving $452.25 for a net deposit. I still have ~$10k left to be invested, so these amounts will change in the near future. Also, when I rollover my 401k in February these amounts will probably change again.

In my wife’s IRA account, I withdraw ~99% of the monthly dividends each month, or $725, with 33% of that amount ($239.25) withheld for federal taxes, leaving $485.75 for a net deposit. I still have ~$14k left to be invested, so these amounts will change in the near future.

In my Roth IRA account, I withdraw ~94% of the monthly dividends each month, or about $125.

In my wife’s Roth IRA account, I withdraw ~97% of the monthly dividends each month, or about $300.

Any cash left in the accounts will be allowed to accrue for any upcoming stock purchases, etc., but I plan on keeping an amount equal to at least 1-2 months of withdrawals available in each account to cover any withdrawals for the next 1-2 months.

For both of our individual brokerage accounts, any amount in excess of the minimum required for 1-2 months of withdrawals will be transferred to our joint brokerage account. These aggregated funds will allow me to make buys and pay only one trade fee instead of 2 for each buy, and the aggregation of our funds allows me to buy more. This joint account is not tracked, and all purchases will be transferred 50/50 into our individual brokerage accounts. Any dividends or interest will be likewise distributed.

This is not a permanent solution, however. I am only doing this until some of our monthly expenses are paid off, such as the furniture we bought when we moved here, my 401k loans, and any other monthly expense that might be eliminated or reduced. I should probably mention that all loans with the exception of my 401k loans are at 0% interest, because I don’t like to pay interest, I just like getting paid interest (i.e.; dividends!). My 401k loan re-payments are simply added to my 401k balance, although I do pay ~8% premium for the privilege.

This is the time-frame with the reduction amounts;


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#HYHRD: Looking at daily and weekly charts for w/e 8/23 $STUDY

Looking at Charts is now updated on Sunday mornings.

Looking at the daily and weekly charts this week, these stocks look like they are in nice uptrends;


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#HYHRD: Weekly position and portfolio #review $STUDY 8/23 Update

It’s time for the weekly review of positions in the HYHRD (High Yield High Return Dividend) portfolio.

“Smithers, release the hounds!”

  • This week:
  • brokerage-A shows Total Net Profit of $1,693.68, up from $1,099.10
  • Roth IRA-A shows Total Net Profit of $5,182.41, up from $4,494.98
  • IRA-A shows Total Net Profit of $13,484.84, up from $11,114.37
  • brokerage-P shows Total Net Profit of $3,177.42, up from $2,521.73
  • Roth IRA-P shows Total Net Profit of $1,666.51, up from $1,304.13
  • IRA-P shows Total Net Profit of $12,194.63, up from $9,880.87
  • Overall, the HYHRD (High Yield High Return Dividend) portfolio shows a Total Net Profit of $66,595.94, up from $58,656.47.
  • Expected Dividends shows $8,661.25 per year, down from $33,327.64

All figures are ‘since inception in 2012′ and dates vary from account to account.
Let’s see how it breaks down;


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#HYHRD: Expected dividends, current holdings, actual yield as of 8/23 $STUDY

This is the regular posting of the review of “Expected dividends, current portfolio holdings, (and) actual yield” of the #HYHRD portfolio.

This MS Excel workbook now shows not only the Expected Dividends from the currently held positions across the HYHRD portfolio ($8,661.25/year), but now I have also added in the Equal Weight spreadsheet that shows the dollar amounts invested in each stock totaling ($111,818.33). This also enables me to calculate the ACTUAL YIELD for the portfolio holdings, and adds another spreadsheet called, amazingly enough, Actual Yield! From this sheet, I can further determine the most ‘bang for the buck’ by calculating the dividend expected per dollar invested! Um, please don’t put too much faith on that and base your investment on it, as I just wanted to calculate how much each stock would potentially earn (This portfolio should be expected to return about 7.745823% in dividends alone, according to the calculations that were just done). This does NOT consider capital gain/loss, like the new ‘scoring’ procedure does. I now use this new ‘scoring’ procedure along with all of the other indicators and sometimes my ‘gut feeling’ as to what and how to invest. Do your homework and do your own due diligence! YMMV!

Speaking of ‘gut feeling’, I sold all of our positions on 8/21, realizing capital gains of over $6,000.00 across all of our accounts. I’m calling that a ‘reset’ for the portfolio. I just didn’t feel comfortable with world events and thought I saw a little bit of instability in world and US markets. Perhaps I was wrong. I certainly hope so. Nevertheless, I have begun to re-establish some ‘old’ positions and establish some new ones. And, because $ORC was one of the positions sold on 8/21, and it was before the ex-dividend date on 8/22, I will not be receiving the $744 I had previously forecast for the dividend so instead I took $2,755.34 in capital gains on that position. A worthwhile move, IMHO. YMMV!

The large variations in dividend income each month is due to the ‘small month, small month, big month’ dividend cycle (and the recent portfolio reset), when some quarterly paying dividend stocks do not pay a dividend until 1 or 2 months later. At that time, we will witness the ‘big month’ dividend cycle (usually January, April, July, October).

I also found, and corrected (for next week), an error on the expected dividends spreadsheet that was miscalculating the dividend payment totals for each account.

Mr. Market may have different ideas than you or I, so it’s always a good idea to at least have a look each day. I don’t like buying when the market is going down, but I don’t mind buying so much when the market is going up.

Here is the Expected Dividends workbook;


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