We had an excellent meeting on January 3, 2017 on the patio at Mulligan’s.We welcomed 3 new people attending for the first time. All attending had a great time.
Here are some of the topics we covered and notes:
1. 2017 Forecast – Strong dollar, strong US equity market, just as volatile as 2016. All but short term bonds are in trouble. Spread between US 10 Year and Global is highest ever. Inflation will increase, who knows what taxes will be. If you have cash, buy on dips. Debt looks good, floating rate debt (bonds) is conservative. There will be surprises!
2. Have a one or more specific Goals
b. Debt elimination
3. Have a Financial Plan
a. Plan for existing investment portfolio(s)
b. Where to put new contributions
c. How to reduce investment expenses
d. Active vs. Passive Funds/ETF’s
e. Tax plan for the next 2 years, reduce SS tax by having cash if necessary
f. Cash-Emergency plan for the next 2 years (maintain 1 year cash or Roth)
g. Have core of Market Index’s BEFORE individual stocks
h. When to Buy and When to Sell, story or chart changes. Don’t overdo it!
i. Proper Allocation – Remember you already have an inflation adjusted $1M Bond, $58,600 = $1.17M @ 5% Bond Yield (Social Security)
j. When to buy and sell stocks
4. Eliminate all Debt, except house mortgage
a. Mortgage can be cash flow benefit or SWAT
a. Reduce expenses, but no pain (see BOGO)
b. Plan Social Security maximum
c. Generate income to fill GAP
d. Plan for RMD
i. Remember at 6% yield/growth, principle will last 20 years. 70 – 90 Years old
ii. Plan on taking lump sum at year end for following year.
e. Understand real “Income Investing”
6. In Case of Emergency Plan – Written & Updated
7. Ideas to Enhance Income
a. Short term stock trading – follow the trend
b. Selling Calls on stable Dividend Stocks
c. Sell Puts on volatile “in the news” stocks
8. Use BOGO – Mindset
a. Remember $1 cash saved is worth $1.15 – $1.27 profit on investments
b. 2% on Credit Card
c. 5% Amazon
d. 20% on gas
e. 20% at Golf Club
Click this link to get a list of “7 Best Monthly Dividend Stocks for 2017” as presented by Michael Henning. Some of us already own some of these stocks. CLICK HERE.