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A Dividend Portfolio For Transaction-Free Investing

Summary:

  • Transaction-free trading platforms can be a powerful tool for compounding dividend returns.
  • Concentrating on undervalued stocks that pay high dividend yields and growing dividends can reap high returns.
  • Straying into investments that are difficult to understand for the sake of diversification can be a drag on returns.

In the beginning of 2017, I set out to create a total return portfolio for my long-term savings. At that time, I had learned through self-study about value investing, high-yield dividend investing, and dividend growth investing. Seeking Alpha was a wonderful inspiration, as was Get Rich with Dividends by Marc Lichtenfeld and the wisdom of Warren Buffett.

What Seeking Alpha authors helped me realize is that dividend investing can be about much more than income. It is a powerful mechanism for compounding wealth. Continue reading…

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Book Review: The End of Alchemy

end of alchemyThe End of Alchemy is the most comprehensive book on financial crises that has been published since the Great Recession. Mervyn King headed up the Bank of England during the 2008 Financial Crisis. However, unlike Timothy Geithner and Ben Bernanke, he doesn’t set out to defend his actions during the crisis or make excuses for questionable decisions. Instead, King criticizes the system that allowed the crisis to happen, allowed the crises before it, and will inevitably create future crises if it is not changed. Continue reading “Book Review: The End of Alchemy”

Millennial Stereotypes Are Sometimes Unavoidable… and Hilarious

millenials

I recently listened to a great interview on Bloomberg’s Odd Lots podcast about how “The Way We Talk About Millennials Is Wrong.” Malcolm Harris, author of Kids These Days: Human Capital and the Making of Millennials, makes an important point about how the identity of the millennial generation is largely created by marketing experts who use overgeneralized ideas to help companies sell stuff to them. Continue reading “Millennial Stereotypes Are Sometimes Unavoidable… and Hilarious”

Book Review: The Total Money Makeover

Total Money MakeoverDave Ramsey’s Total Money Makeover is not a perfect system, nor is this a perfect book, but it is the reality check that tens of thousands of American consumers need. After one filters out the unhelpful testimonials and the plugs for his radio show, this book a lot of good common sense about finances.

Ramsey rightly compares personal finance to personal health. Most of it is common sense, but as he says, it is 20% knowledge and 80% behavior. Ramsey’s system is all about correcting behavior. There are some methods that are more efficient than Ramsey’s but that offer too many temptations that many people can’t handle. While Ramsey encourages you to follow his system strictly, he is forthcoming about the arguments against everything he says. This is an important reason why I recommend this book.

Some people need this system and need to follow it strictly to fix their finances. Some people are already doing okay and can keep doing what they are doing. I would say that this program is not for everyone, but everyone should read it to make sure. It could be the difference between becoming a millionaire and going bankrupt. Even if you don’t use it all, there is plenty of good information and some solid reality checks in here for everyone, even those who already know a lot about finance and are financially successful.

Wide Your World, Part II: Listen Up!

Mainstream radio is pretty much music, news, sports, and some comedy. The music is mainly the same 10 songs over and over again, with each station having its own slight variation on what those 10 songs are. The news is either mainstream headlines and soundbites or political pundits ranting, usually spewing inaccurate information that is not based on actual research. Sports coverage is 90% NFL football, even when it’s basketball and baseball season. How much are your really getting out of this stuff? It seems more and more like they are just trying to keep you busy between commercials. Most of what is on the radio is the same old noise over and over again.

It’s time to listen up! Upgrade the value of the material you listen to every day. Continue reading “Wide Your World, Part II: Listen Up!”