Monday, April 6, 2020

IRA to Roth Conversion Part #3

Retirement Gremlin back to talk about the long term process I am undertaking to slowly convert my IRA holdings to Roth.  This is the third 'backdoor' account conversion I have initiated.  I decided to take advantage of the economy, our down income (wife taking school year off for the 2nd child), and our general tax situation.  My first conversion and the underlying strategy can be found here.

Strategy: to avoid unnecessary taxable events, I will move around 1 to 2 "positions" a year.  At this rate I will be able to move the whole IRA to my Roth by the time I am 59. This is of course to maximize growth and minimize taxes.

Process: Since my accounts are all at the same brokerage, I can for no fee transfer single positions after a few mouse clicks.

Part 3:

For my third conversion I moved my entire position in WELL (30 shares - $1218 value). With this conversion, I am effectively moving $104.40 in forward dividends from my SEP IRA to my ROTH accounts.  The initial cost on the shares was a little over $2100 and their recent high was $3000 in value; so I feel like long term this was a good move.  The income in a Roth is always more powerful than a regular IRA.

Part 4 will happen next calendar year.

All changes will be reflected in my portfolio at the end of the month.

- Gremlin
- Long WELL

Wednesday, April 1, 2020

March Review / April Preview 2020

Quarantined Gremlin here for an update on March.  We have been mostly holed up for three weeks now, only venturing around for fresh air, exercise, and the occasional medical or grocery need.  Mentally, doing this with little kids is exhausting; so those of you without better take advantage and all of you better come out of this healthy and speaking like 1 new language + have some other trivial knowledge base.  I will continue to buy stocks, but I am looking for high quality positions from here on out only.  In the meantime, everyone stay sane out there.  This crisis will not last forever, eventually things will return to the new normal.

March:

This month I added shares to eight positions in my accounts, including new positions in Cisco Systems (CSCO) and Medtronic PLC (MDT).

Last month I brought in a total of $504.43 in dividends ($217.82 taxable, $122.20 Roth, and $164.41 in my IRA).  This is an increase from last year ($429.57 total) by 17%.

In terms of dividend increases, I realized 12 dividend increases from the Archer Daniel's Midland (ADM), Amgen (AGMN), Canadian National Railway (CNI), Dominion Power (D), Dunkin Brands (DNKN), Eaton Corp. (ETN), 3M (MMM), Waste Management (WM), YUM! Brands (YUM), Corning (GLW), Prudential (PRU), and T. Rowe Price (TROW). The increases range from just about 1.5% to 10+%. This brings my total raises to 17 for 2020.

Next month I will realize 6 dividend increases from the Canadian Imperial Bank of Commerce (CM), Coca Cola (KO), Realty Income (O), TD Bank (TD), WalMart (WMT), and Kimberly Clark (KMB).  The increases range from 0.2% to 7%.

In addition, I have received one dividend halt/pause/suspension from the Gap (GPS).  This is not a huge position for me, and I will hold, but it is annoying.  I think this will become a wider spread item, and I will continue to hold, but remember this going forward after the crisis abates.

NOTE: I only count increases when realized, because until that money is delivered any statements or declarations are simply conjecture.

April:

The mortgage continues and I am putting extra cash towards the principal monthly - not a huge number, but every little bit counts. Our debts currently outstrip our assets, because I consider our house a liability and NOT an asset.

I will continue to make rolling purchases going forward. I will also take advantage of the low prices and move some shares from my IRA to my Roth.

Next month should produce around $123 in dividends, which is a 20% YOY increase.

My portfolio page is currently up to date.

Hope everyone has a great April.
- Dividend Gremlin
- Long all stock tickers

Thursday, March 26, 2020

March 2020 Buys

Work From Home Gremlin here to talk about my buys for this past month.  It has now been almost two weeks since I have done anything outside my house besides go for some runs and some walks (so all that is missing for me is mainly work and 1 weekly social activity).  My wife, son, and I are not in high risk groups for COVID-19, but my daughter has a heart condition.  Due to that we are being extra cautious, even though I suspect this condition will likely not affect her.  That said her surgeons and doctors are all 40+ years old, so anything we can do to end this sooner is better for her regardless.  Honestly, this virus in someways is a "welcome to our world" sort of scenario for everyone else.  Once your knuckles start to bleed from hand washing and look like you were in a bare-knuckle boxing match - you'll start to get it.

So apart from the general lock down situations, the market has been awesomely irrational.  Some companies have eliminated or frozen dividends and buybacks due to the need to preserve capital.  The ending of buybacks should strike people as particularly interesting given that those were getting ramped up when share prices were super high... if there is anytime (in general) for buybacks it is right now with all the cheap stock flying around.  Additionally, the market and underlying index funds are massively in flux, which means good opportunities for the long haulers like me (and you if you've read this far).  Anyways, enough talk, what did I buy?

No purchase or account fees were paid this month (* indicates a new position, which will be discussed below):

Taxable:
BMO - 2 shares @ $42.15 / share ($84.29 total), $5.4 income added [approx. $CAD]
CM - 1 share @ $53.93 / share ($53.93 total), $3.71 income added [approx. $CAD]
CSCO* - 5 shares @ $36.97 / share ($184.83 total), $7.2 income added
EV - 2 shares @ $28.76 / share ($57.52 total), $3 income added
MDT* - 2 shares @ $75.95 / share ($151.90 total), $4.32 income added
NNN - 2 shares @ $34.47 / share ($68.95 total), $4.12 income added
SBUX - 1 share @ $55.86 / share ($55.86 total), $1.68 income added
Total Invested = $631.57
Annual Income Added (AIA) = $36.63

Roth:
CSCO* - 3 shares @ $36.84 / share ($110.53 total) $4.32 income added
Total Invested = $97.23
AIA = $4.32

Standard IRA:
FLIC- 9 shares @ $19.47 / share ($175.23 total), $6.48 income added
Total Invested = $175.23
AIA = $6.48

Totals:
Invested = $904.03
AIA = $47.43

*New Positions:
CSCO - Cisco Systems is one of the more stable tech stocks out there, and their offerings rang from hardware to software such as Webex.  This shutdown is showing that some arms of industry can continue to function, in large part thanks to companies like CSCO.  Right now they are showing their value and that they are a definite part of the future.  Plus they're cheap right now.

MDT - I have wanted to own Medtronic now for at least 5 years.  This is a stock that is never cheap and always producing.  I have always like companies with at least some exposure to the medical device industry, and of all the times this seems to be an appropriate one to acquire shares in a company like MDT.  My only regret was I was not able to grab more shares.

I will update my portfolio page at the end of the month.

What do you think of these companies?

- Gremlin
- Long all tickers mentioned

Tuesday, March 3, 2020

February Review, March Preview 2020

mugger-gremlin.jpgWhat a Month Gremlin.  My family insurance has already surpassed my out of pocket insurance max for healthcare.  This is what can happen when you have kids who need the occasional hospital visit.  Anyways, between that and a leak in my upstairs shower, it has been an eventful month.  However, there is always hope - with warm days rolling in there will be more chances to get outside and get fresh air (with some allergy meds in my system of course).

Internationally, it looks like a recession might be starting.  I have felt for a while now that all that was needed was a spark, that this economic boom is missing a segment of the population, and you never know what will spark a slow down.  Maybe this virus is the spark, only time will tell.  For the record I do work with respirators regularly, and I can assure you they are not really effective if you haven't been taught how to use them.  So that said, I hope everyone is able to buy your future income at a discount and please do stay safe (and wash your damn hands)!

February:

This month I added shares to six positions in my accounts.

Last month I brought in a total of $349.18 in dividends ($119.67 taxable, $89.61 Roth, and $139.80 in my IRA).  This is an increase from last year ($286.21 total) by 22%.  In addition, I received a $75 special dividend from MSM, and I am counting that as a special capital return.

In terms of dividend increases, I realized 3 raises from Bank of Montreal (BMO), Realty Income (O), AT&T (T), and Abbott Labs (ABT). The increases range from just about 2% to 12.5%. This brings my total raises to 5 for 2020.

Next month I will realize 12 dividend increases from the Archer Daniel's Midland (ADM), Amgen (AGMN), Canadian National Railway (CNI), Dominion Power (D), Dunkin Brands (DNKN), Eaton Corp. (ETN), 3M (MMM), Waste Management (WM), YUM! Brands (YUM), Corning (GLW), Prudential (PRU), and T. Rowe Price (TROW).  The increases range from 1.5% to 10+%.

NOTE: I only count increases when realized, because until that money is delivered any statements or declarations are simply conjecture.

March:

The mortgage continues and I am putting extra cash towards the principal monthly - not a huge number, but every little bit counts. Our debts currently outstrip our assets, because I consider our house a liability and NOT an asset.

I will continue to make rolling purchases going forward.

Next month should produce around $480 in dividends, which is a 11% YOY increase.

My portfolio page is currently up to date.

Hope everyone has a great March.
- Dividend Gremlin
- Long all stock tickers

Friday, February 28, 2020

February 2020 Buys

No Time Gremlin here to talk about my buys for this past month.  The world is nuts at least if you read the news, or if you're living my life.  My big life news is we are deciding where to have our daughter's next (and hopefully last) major heart surgery.  It likely will be all the way across the country at a specialized program.  Could the surgery be done here, yes?  But not to the same quality level with exceptional level of outcomes out west.  I know this will likely be a proverbial kick to the balls for our financial independence, but as we are talking life and death I believe the extra expense is worth it.

Anyways, the march forward continues and the market looks like it has decided to readjust itself (unfortunately thanks to a potential pandemic). Regardless, time to take advantage of Mr. Market.

No purchase or account fees were paid this month. I added shares of the following companies by account (* indicates a new position, which will be discussed below):

Taxable:
B** - 0.367 shares bought for $26.31 (DRIP), $0.46 income added
KR - 4 shares @ $27.53 / share ($110.12 total), $2.56 income added
KTB - 2 shares @ $38.41 / share ($76.81 total), $4.48 income added
Total Invested = $582.28
Annual Income Added (AIA) = $7.5

Roth:
AROW - 2 shares @ $35.11 / share ($70.23 total), $2.08 income added
GLW - 1 share @ $27, $0.88 income added
Total Invested = $97.23
AIA = $2.96

Standard IRA:
FLIC- 6 shares @ $23.02 / share ($138.11 total), $4.32 income added
Total Invested = $138.11
AIA = $4.32

Totals:
Invested = $938.06
AIA = $13.34

*New Positions:
None.

I will update my portfolio page at the end of the month.

What do you think of these companies?

- Gremlin
- Long all tickers mentioned

Monday, February 3, 2020

January Review, February Preview 2020

End of the Season Gremlin here to talk about the first two months of the new year.  This past weekend was the Super Bowl and of course I am cheering for the most important thing - excellent pregame chips and dip!

Getting back to reality, January was a decent start to the year and February will build on that momentum.  I do anticipate a little bit of a slow down in terms of fresh capital as we adjust to one income until August.  However, that does not mean investment will stop nor that new capital won't to flow into my accounts.  As always my focus is on my taxable account, because that is the real financial independence engine.  So with all that, lets see how I did.

January:

This month I added shares to four positions, including one new position, in my account.

Last month I brought in a total of $123.57 in dividends ($98.59 taxable, $10.00 Roth, and $14.98 in my IRA).  This is an increase from last year ($109.56 total) by 12%.

In terms of dividend increases, I realized 2 raises from  Realty Income (O) and Eastman Chemical (EMN). The increases range from just about 1% to more than 17%. This brings my total raises to 2 for 2020.

Next month I will realize three dividend increases from the Bank of Montreal (BMO), Realty Income (O), AT&T (T), and Abbott Labs (ABT).  The increases range from 2% to 12.5% (thanks ABT!).

NOTE: I only count increases when realized, because until that money is delivered any statements or declarations are simply conjecture.

February:

The mortgage continues and I am putting extra cash towards the principal monthly - not a huge number, but every little bit counts. Our debts currently outstrip our assets, because I consider our house a liability and NOT an asset.

I will be doing rolling purchases going forward, expect the buys to come in faster now.

Next month should produce around $420 in dividends, which is a 45+% YOY increase. It should be noted a big portion of this is from a special dividend of $5/share from MSM, which will be counted separately.

My portfolio page is currently up to date.

Hope everyone has a great February.
- Dividend Gremlin
- Long all stock tickers

Thursday, January 23, 2020

January 2020 Buys

Post Holiday Gremlin here to give you my January 2020 buy updates. Time flies when you have kids and not much else to do.  I have been slacking on my working out due to life's requirements, but things are looking up.  My work place just opened up a new gym, free for all who work in my building.  Time to start crushing some iron / running some miles again.  Now back to the financial Independence.  This was a lighter month, and the next few will be too.  We have a bit of a home repair issue plus only my income is still our only one in the house.  This time though is special with the little kids, so its not worth griping over - even though those kids are a lot of work!

No purchase or account fees were paid this month. I added shares of the following companies by account (* indicates a new position, which will be discussed below):

Taxable:
B** - 3.12 shares bought for $210.84 (employee discount), $3.37 income added
EVR - 2 shares @ $75 / share ($150 total), $4.68 income added
KR - 4 shares @ $28.63 / share ($114.53 total), $2.56 income added
NNN - 2 shares @ $53.46 / share ($106.91 total), $4.12
Total Invested = $582.28
Annual Income Added (AIA) = $14.73

Roth:
None purchased.

Standard IRA:
None purchased.

Totals:
Invested = $938.06
AIA = $14.73

*New Positions:
NNN - National Retail Properties.  This is my second REIT in my taxable account.  NNN will be a support type position for my primary REIT, O (Realty Income).  I like the mix of properties and growth.  The valuation is ok, but its just a starter position for now.

I will update my portfolio page at the end of the month.

What do you think of these companies?

- Gremlin
- Long all tickers mentioned