New Chat Links

On the right hand side of the page under “additional links” are a couple new links for chatting about common stock and 1 for chatting about REITs. kaptain lou mentioned this might be helpful and would help filet out some of the various topics.

I can add bunches of these if that would be helpful. If you let me know in comments if you have additional topics that would be helpful I can add them.

12 thoughts on “New Chat Links”

  1. Actually, I find I have more risk tolerance as I get older. I’m 77 years old and run two major accounts: a stock account and a larger fixed income IRA that pays the bills. Been retired for 14 years. The fixed income was basically a ladder of 5 year CDs paying monthly and providing 4 1/2 to 5% yield. Mister Bernanke ended that approach and as the CDs matured, the cash was deployed into preferreds. The stock account is basically set up to produce yield at reasonable risk which means a lot of energy, REITs, infrastructure, financials etc. My goal is never to be looking at my portfolio and asking” what will I sell this month to pay my bills”. The cash should have already been deposited in my checking account thanks to the yield. But I find I need a different mind set for my stock account where I need to expect fluctuation and not be rattled by it. Total net worth has become less important than cash flow to pay living expenses. I’ll let my heirs deal with the stock prices. I only need to be concerned with sustainable yields from healthy companies. Stock market downdrafts are just an opportunity to buy more yield at bargain prices.

    1. Jerseyvinny–I fully understand what you are saying. In theory we might not need any of our retirement money for years with 2 pensions and 2 social security checks–my fears are mostly the ‘fear of the unknown’. I am hopeful after a year of retirement my comfort level with risk will become like yours.

    2. That’s exactly where I’ve gone. I mean, I’ve been all over the place investment wise but after selling most of my preferred stock and going to cash, I told myself this manic investment behavior is crazy!

      I’ve set up the IRA with mostly ETF’s, a few CEF’s and a few individual issues. The yield works out to about 4.5% but has some growth. The other account is with the Thrift Savings Plan and is in the money market equivalent fund.

      I’m retired. My wife decided a few weeks ago to retire at the end of this year. I easily have 10-12 years of cash needed to supplement our social security in the TSP account. We want to go enjoy retirement and not make decisions based on market gyrations. Like you, the significant cash position allows us to do exactly that. We don’t have to figure out what to sell each month. In 10-12 years there will be enough cash in the Fidelity (FDRXX) clearing account from dividends and interest on the investments to fund another 10 years of cash needs. Peace of mind is priceless.

    3. Vinny, your mindset is exactly where mine is. As my time in retirement grows, I find myself calmer. I no longer care about anything except income. Just keep paying me, and please please please go down when I have excess funds to take advantage of bargains.

      Tim, you are in the catbird seat with two–count ’em, 2–pensions PLUS social security? Pshaw. You should plan on doing nothing in retirement that you don’t enjoy or are forced into doing. I and most here hope that perfecting this site continues to please you. 😉

      BTW, WFC-L, a de facto noncallable goes xd on the 29th and currently yields ~5.2%…just sayin’…

      1. camroc–I work the numbers 15 different ways and we should be in good shape, but I worry just the same–my hope is as we get into retirement I feel the comfort level you do.

  2. I would like to read comments about BDCs, CEFs, and marine shippers, please.

    Many thanks for all that you do.
    Jeff

    1. Jeff W – I’d certainly like to hear a little more about those as well. But here is my question – are you willing to write about those, give your opinion and provide material to this great website? I’ve done it this evening and would like to ask you to do the same.

    2. Jeff W – I will write more in detail about alot of things including these–I was supposed to be retired by now and devoting full time to this site–but my wife had other ideas so it will be springtime before I am fulltime here.

  3. Tim- thanks for taking to take the time to add these additional “Chat” areas for investors. I would love to stay all in fixed income/preferreds and used to be able to get returns in the low 7% area and was fine with this return because the downside was pretty limited. However, with some of the new issues being priced at just a little over 5%, I may need to expand my investment risk a little more and look at some common stocks that I feel are undervalued and have a very small chance of a dividend cut. I’m 50 years old and still am trying to stay ahead of inflation and pay taxes on some of my holdings that are not in retirement accounts.

    1. kap, We seem to be getting cornered here…the fixed income as you point out increasingly an exercise in diminishing returns. There’s been so much focus on the rates alone, it appears some clarity may have been lost on the risk side of the equation. In addition to the inflation and tax considerations you outlined, potential liquidity and credit spread risks come to mind.

      For most new holdings, 5% was my Maginot line, which was then rationalized into a QDI equivalent of 5.5% and then being OK with existing holdings whose YTC fell well into the 4s and some into the 3s (DUK-A, NEE-N, SR-A).

      So…like you, I’ve also been looking at REITs. Especially interested in those with measurable book values based on hard assets. Though as with our fixed income issues, most appear priced 20% over LT reasonable value. The conundrum here is balancing the pendulum between sitting on too much cash during a interest rate winter, buying assets knowing they’re historically overpriced, or rolling the dice on the unknown, waiting for an “event.”

      1. Alpha, it makes an interesting conundrum doesnt it. And it all boils down to ones personal assumptions going forward concerning interest rates.
        In some ways they are currently not overpriced as if one assumes rates are staying this low or lower….Take MNR-C it was issued at the absolute low point of interest rates in 2016 when they were right where 10 year is now. MNR-C is doing just as well now as it was then. Yet this preferred is still trading under par now by 17 cents with 2 years call protection still.
        The “event” typically happens periodically though patience is required as it can be a while. Then if your brave a “company event” can happen separate from a market event. The AHT preferreds recently had that and have largely recovered. Typically those examples come from the more leveraged companies and one has to be brave or tolerant to those types of securities though.
        If one is assuming rates are going to move up some from here, there is very little place to hide and wait there. I kind of have mine buck shotted around the yield and term environment. And it has dragged my portfolio yield down with it. For example I just recently bought SPE-B which term dates out in 2 years. At 3.5% par yield, that isnt helping the yield problem. But it does protect against duration and safety risk.

    2. kaptain–you are welcome. Yes I am afraid we will all be pushed out into riskier assets–I haven’t really determined how I will handle it all. At your age you likely have more risk tolerance than I do at 65.

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