Retirement Planning: Ed Slott Style

I suggest that you watch these videos below. They provide some great retirement planning advice. Ed Slott is one of the great financial minds of this century. Perform your due dilligence and take what you will from the advice below.

You must commit yourself to save as much as you can today so it can compound into a moat of cash later in life. Educate yourself and keep more of the money that you make!

Credit Card Repayment Calculator

Now is the time to rid yourself of pesky credit card debt. Please use this handy Credit Card Repayment Calculator below to determine how quickly you can pay off any outstanding credit card debt.

Click here ---> Credit Card Repayment Calculator

Don't let your debt control your life. Take baby steps and chip away at your balance today!

Once you pay off your debt then you can begin putting additional funds into an FDIC insured savings account. Once you have at least 5-6 months worth of living expenses saved up begin purchasing high quality dividend paying stocks. You will begin to see dividend payments coming in on a monthly basis. Reinvest those dividends and watch your Roth IRA balance rise instead of your Credit card outstanding balance!

Here is a great example below.

Social Security Benefits Check Up via ssa.gov

If you ever wanted to know how much Social Security will pay you when you retire, create an account here.

Once you setup an account with ssa.gov they will provide you with a breakdown of how much money is due to you or your family, pending death and if you become disabled. See below for examples:

At full retirement age (67):  $x,xxx a month
At age 70: $x,xxx a month
At early retirement age (62): $x,xxx a month

I suggest creating an account with SSA.gov because it is critical to know exactly how much money you will receive on a monthly basis from Social security during your retirement years. This will allow you ample time to plan how to invest in various markets (i.e. Stocks, Bonds, Mutual Funds, ETFs, Gold, REITs, Real Estate, etc).

You should invest more into your Roth IRA or 401K if you feel you cannot live off of your social security income. Now is the time to think about retirement, even if you are 18 years old. Yes, I said. Imagine working for 30, 40, or 50 years and then having to go into panic mode since you did not plan properly?

Your SSA.gov My Benefits page will also provide you with the following helpful information:

Your estimates are based on the assumption that you will earn $xx,xxx a year from now until retirement.


Disability
If you become disabled right now your estimated payment would be: $x,xxx
(You can even apply online through SSA.gov for Disability


Family
If you get retirement or disability benefits, your spouse and children also may qualify for benefits.


Survivors
You have enough credits for your family to qualify for survivor benefits. If you die this year, certain members of your family may be eligible for these benefits:


Your child: $x,xxx a month
Your spouse who is caring for your child: $x,xxx
Your spouse (starting at full retirement age):  $x,xxx a month
Your total family benefits cannot be more than $x,xxx a month.
Your spouse or minor child may be eligible for a special one-time death benefit of $x,xxx.


Please don't become a victim of poor retirement planning! Watch these videos below to learn more about Social Security.

Franklin Roosevelt Social Security Speech

Social Security vs. Private Retirement

The Social Security Story

Social Security Administration Interview

Roth IRA Stock Portfolio: Business Plan Advice

It is very important to develop a business plan or a plan of action before opening a Roth IRA stock portfolio. Some questions you may ask are: Which stocks do I want to invest in? What percentages of each sector should I direct my hard earned monies towards? How often should I re-balance my portfolio? Well, always remember that you are in total control of your stock portfolio. Don't let anyone persuade you to invest in a recent hot stock or a get rich investment scheme. This is your money that your working with and ultimately the success of your portfolio and how wealthy you are during your retirement years are a direct correlation of how many wise and well thought out investment decisions are made over your many years of stock market investing.

That being said, you do not need to be a professional stock broker nor a genius like Warren Buffet to develop an income stream within your Roth IRA stock portfolio. Now of course, that is contrary to what any broker may tell you, but believe me, being confident in your business plan, performing your due diligence for each stock investment, and then following through with your ultimate goal is a sure way to achieve a successful stock portfolio.

You may be saying to yourself, why should I buy stock within a Roth IRA? Well, a Roth IRA is the ultimate retirement tool that allows you to invest in stocks, bonds and mutual funds, while letting them grow and compound dividend payment after glorious dividend payment. Then after you turn 59 1/2 years of age you are allowed to withdraw the entire sum of your investments including gains, tax-free!

Treat your portfolio as if you are running your own business. Would you hire an employee who sleeps on the job? Would you use your profits to invest in an unknown start up company with the hopes of getting rich quick? I strongly advise you to monitor any company that you buy stock from on a weekly basis. Invest in companies that pay you to hold their stock in the form of a monthly or quarterly dividend, then if the stock price goes down their dividend yield will increase. Also, invest in companies which have been around for decades, have a moat of cash on hand, and have a dividend yield higher than 2%, if not 3%. There are plenty of great companies out there which pay a reliable and secure 4%, 5%, 6% and even 7% dividend yield. That's guaranteed free cash!

Constantly reassess what your stock portfolio goals are and also how much risk you are wiling to take. If you make solid, well thought-out purchases then you can sleep better at night. Do your homework! Research how long each company has paid a dividend, listen to their quarterly conference calls so you can hear how well or bad the company is performing directly from the CEO's lips. Take notes and then hold them accountable if they do not meet analysts, but more importantly, your shareholder expectations. Keep excellent records so you can go back and pinpoint where the company may have gone wrong, or made erroneous decisions.

My final comment pertaining to a Roth IRA stock portfolio business plan is to only invest money that you can lose. Now of course, you probably won't lose your money if you make smart investing decisions, but it is so important to not use money that you should be using to pay your bills (for example, college loans, utilities, car note, mortgage, grocery, clothing money, etc.). Don't cut yourself short each month just because you want a few more shares of your favorite winning stock. The stock market is a risky place, but historically has provided some of the best return on investments the world has ever seen.

Please feel free to comment below and share your story of what makes a great stock portfolio business plan. Share your tips with the world so we can all profit. Have a great Friday and continue to reinvest your dividends! Thank you for your time and support.

Hartford Financial Services - HIG

On May 11th, 2007 the Hartford Financial Services Group, Inc., stock ticker HIG, was worth $105.34 and paying a 50 cent dividend. Today, December 28th, 2011 HIG sells for $16.07. Yes, that is a huge change in stock price, however HIG still pays a 10 cent quarterly dividend, which currently is a 2.49% dividend yield. 

Let's backtrack for a second. HIG, together with its subsidiaries, The Hartford is an insurance and financial services company. They maintain a retail mutual fund operation, whereby HIG, through wholly-owned subsidiaries, provides investment management and administrative services to The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc., consisting of 52 mutual funds, as of December 31, 2010. 

HIG is at a historical low, is a great value play, and while you wait for the share price to rebound you'll be paid. I am not some insider who has secret information about this company nor a psychic who can see the future, I just believe that HIG is where it's at for maximum gains. They are planning a buy back of their own stock in 2012 and their dividend will only keep growing at this point. Their P/E is among the lowest in their industry and should recover nicely as they return to respectable profitability in 2012. Essentially HIG has broke even during the past two quarter, however they are trading at less than half of their tangible book value!

If you want to go bargain hunting to feed your Roth IRA then look no further than the Hartford. Not only are they a long time insurance company, but they have several lines that cater to our aging population. As the baby boomers continue to hit their retirement years expect sales to pick up drastically. The last time you could pick up HIG at these levels was the early mid 1990's. HIG may not be worth what they were worth in 2007, but they are worth more now than they were in 1994. There is nothing wrong with buying HIG and holding on for the long term. They are a company with over two hundred years of business experience and have been through worse through their company's history and repeatedly come out of the storm just fine in the end. Think of HIG as an insurance policy for your Roth IRA. HIG is only going to increase in value! Believe it.

Please visit Hartford's website, here, and their Investor Relations website, here. Feel free to watch the videos below to learn more about this excellent company and consistent dividend payer. Have a great remainder of the week! I wish you much success with your Roth IRA stock purchases.

Royal Bank of Canada - RY

Let's get down to business. Royal Bank of Canada, stock ticker RY pays shareholders 54 cents per share each quarter, which is currently a whopping 4.51% dividend yield. RY did not stop paying their dividend during the Great Recession and actually increased their dividend payment from 50 cents to 54 cents on June 22nd, 2011. They are Canada's largest banks as measured by assets and market capitalization, and are among the largest banks in the world, based on market capitalization. They are one of North America's leading diversified financial services companies, and provide personal and commercial banking, wealth management services, insurance, corporate and investment banking and transaction processing services on a global basis.

RY currently employs approximately 74,000 full and part time employees who serve close to 15 million personal, business, public sector and institutional clients through offices in Canada, the U.S. and 56 other countries. RY is currently among one of the twenty largest banks globally as of November 30th, 2011 (see picture below). Their Canadian goal is to be the undisputed leader in financial services and global goal is to to be the leading provider of capital markets and wealth management solutions.

You might be asking: Why invest in a bank stock considering that Bank of America and Citigroup are in the tank? Well, Canada's economy has fared much better than that of the United States, with a 2.4% gross domestic product growth rate and earnings rising 13% last quarter RY is one of the last remaining banks stocks which is worth any risk. Their dividend is never going away. Quote me. It should have been cut in half back in 2008, but stayed put.

Continued higher earnings will propel this stock higher in the short term and if RY's value decreases the dividend yield will increase and you'll end up getting paid to wait for the stock price to fly high once more. This truly is a win win. RY bank has taken fewer riskier lending positions and the Canadian economy remains in good shape. Additionally, they were recently listed among top 2011 third quarter stocks by Blackrock. Like most of the Canadian owned institutions the minimum reserve requirements as well as the lower exposure levels to toxic debt has kept it largely out of the mess currently seen in the sector. With the recent investment expansions into the United States and international investment markets profits should continue on its current level.

Please do your due diligence on this one, but I highly suggest putting this baby into the bank sector of your Roth IRA stock portfolio. The Royal Bank of Canada has great leadership, are consistently one of the best companies to work for, they are socially responsible and they know how to continue to make money even through difficult economic times. Enjoy the videos below, have a great remainder of your weekend!

Roth vs. Traditional IRAs

Noteworthy Roth IRA Youtube videos are below, enjoy! Have a great day tomorrow!

Update: Stock Picks for the week of 11/21/11 to 11/25/11

It was a horrible week for all 14 stock selections for the week of 11/21/11 to 11/25/11. All selected stocks decreased in value, with a total loss of $26.37, due in large part to the Dow and S&P logging their worst Thanksgiving week since 1932! Now is the time to buy though. Each stock's dividend yield has increased and are selling at a discount. They are historical high yielders and profitable, mainstay companies. I am not trying to hide the fact that last week was rough and if you purchased these stock at the beginning of last week you lost a pretty penny, however selling when the market is down is not the best idea. If you have any free cash on hand I suggest buying HE, DOW, HD, and ADP.

The CBOE Volatility Index, which is considered the best gauge of fear in the market, ended above 34. Among key S&P sectors, consumer staples and utilities led the gainers, while energy and techs lagged. The market is down, but not out. In my opinion, there has been a tremendous buying opportunity these past couple of weeks.

In closing, always invest in high yielding dividend paying stocks. Hold on to your stocks for the long term so dividends have plenty of time to compound. Feel free to watch the videos below about HD and DOW. In a down market they will provide stability within your Roth IRA. Until next time, reinvest those dividends and have a great remainder of the weekend! Spend within your means.


Net Gain/Loss  -$26.37
Stock Ticker    Quote @ 11/5/11   Quote @ 11/12/11
Hawaiian Electric Industries, Inc.  (Public, NYSE:HE) $25.64  $24.25

-$1.39
Pepco Holdings, Inc.  (Public, NYSE:POM) $19.43 $18.71
-$0.72
UIL Holdings Corporation  (Public, NYSE:UIL) $33.71  $32.25
-$1.46
Harley-Davidson, Inc.  (Public, NYSE:HOG) $36.34  $34.80
-$1.54
The Dow Chemical Company  (Public, NYSE:DOW) $25.95  $24.47
-$1.48
Quest Diagnostics Incorporated  (Public, NYSE:DGX) $55.14  $54.43
-$0.71
Prudential Financial, Inc.  (Public, NYSE:PRU)  $48.53  $44.91
-$3.62
The Home Depot, Inc.  (Public, NYSE:HD) $37.88  $36.47
-$1.41
Automatic Data Processing  (Public, NASDAQ:ADP) $49.89  $47.93
-$1.96
Snap-on Incorporated  (Public, NYSE:SNA) $52.15  $48.05
-$4.10
Prospect Capital Corporation  (Public, NASDAQ:PSEC) $9.36  $8.95
-$0.41
RadioShack Corporation  (Public, NYSE:RSH) $12.06  $10.66
-$1.40
Starwood Hotels & Resorts Worldwide, Inc  (Public, NYSE:HOT) $49.08  $43.41
-$5.67
NV Energy, Inc.  (Public, NYSE:NVE) $15.01  $14.51
-$0.50

Clorox Company - CLX

The Clorox Company, stock ticker CLX, is an excellent stock to invest in for your retirement years. They pay a 60 cent dividend, which is currently a 3.65% dividend yield. CLX has increased their dividend each year since October 1987. There have been three 2 for 1 stock splits in Clorox's history. CLX is one of my favorite recession free stocks. In 2008 and early 2009 CLX did not really decrease in value. If you look at their five year stock chart you will see many ups and downs, however CLX has steadily increased quite nicely.

In brief, CLX is a manufacturer of consumer products. CLX manufactures their products in more than 24 countries and advertise in more than 100 countries. They produce and market Clorox bleach, Green Works (natural cleaning products), Poett and Mistolin, Fresh Step and Scoop Away (cat litter), Kingsford (charcoal), Hidden Valley and K C Masterpiece (dressings and sauces), Brita water-filtration systems, Glad bags, wraps and containers, and Burt’s Bees (natural personal care products). Clorox is the leader in their market sector. They seem to show steady profits while increasing their bottom line sales. CLX's dividend yield should support the stock price even if the markets continue to plummet or fluctuate.

Clorox is everywhere. As previously stated, they weathered the market crash of 2008. CLX's products are self-sustaining and garner significant brand loyalty. They have a strong potential for price appreciation based only on a return to normal PE levels. They are positioning themselves nicely to be a major force in the Green market. Their marketing campaign are strong for all products.

In closing, Clorox is a stable, easy business to figure out. I suggest buying on dips and continue to build a position in CLX. They are no joke. Click here to visit Clorox's company website, as well as here to view their Investor Relations page. Until next time, reinvest those dividends and purchase all dividend paying stocks within a Roth IRA.

Xerox Corporation - XRX

Xerox Corporation, stock ticker XRX, offers a broad portfolio to investors. Xerox is in the document technology business. They provide document imaging services, software, and business process and information technology outsourcing support. XRX sells their products and supplies then provides technical services and financing of products. XRX sell directly to customers through their global sales force and through a network of independent agents and the internet.

XRX currently pays investors $0.04 per share, which is a great 2% yield. Their current share price is $8.53, which is a 50% discount to where they were back in December 2007. XRX is a strong market leader and should do very well in Q4 2011 and all throughout 2012. They pay a respectable dividend and generate plenty of cash. I strongly believe that XRX is being underestimated. Management was on the right track even if they did not acquire ACS. 

Xerox makes competitive color printers and their move into services through acquisitions will bring higher margins! XRX has a great reputation and focus on quality. They have plenty of liquid assets if something was to go a rye. 

XRX is dirt cheap. You should be set for gains if you invest at these levels. They have an excellent DRIP program, click here to learn more. Also, check out this article. Now is the time to invest and hold this puppy for life. Dividend increases will occur and the stock price is not going any lower.

Please visit Xerox's company website here, and their Investor relations page, here. Also, enjoy the videos below which should peak your interest. Until next time, reinvest those dividends, hold all dividend paying stocks within a ROTH IRA account, and last but not least, have a great weekend!

Apple iPhone 4s, iCloud and Siri - It's dividend time!

It's pay day for Apple shareholders. Other than AAPL rising $13.57 yesterday October 14th, 2011, I strongly believe a dividend is in the works. Apple was a cash cow prior to the release of iPhone 4s, iCloud and Siri. Look for their cash on hand to rise especially during the next few quarters. With these great new products and features Apple will be on top for many, many years, maybe as long as the rest of our working careers.

It is great to buy the latest Apple products, but its more important to invest in AAPL to fully fund the technology sector, and quite honestly retail sector of your Roth IRA stock portfolio. Apple stores are popping up everywhere and they are about to take over!

Click on this link to read more about how bullish investors like myself are calling for a dividend. Also, watch the videos below. Be on the look out for more from Apple. While we wait for a dividend, let's enjoy the stock increases and continue to hold long term. That may be an simple stock analysis, but for some it is very easy to hit the SELL button after yesterday's rally.

Update: Stock Picks for the week of 10/2/11 to 10/8/11

As you can see below, it was a 6 for 10 week. CAG, ABT, BMY, MMM, IBM and UTX all popped. IBM flew higher by $7.52. It is important to remember that investing in high yielding dividend paying stocks. Hold on to your dividend paying stocks for the long term and reap the benefits!

Feel free to watch the video below about IBM. IBM will inject your Roth IRA stock portfolio with stability and profits. Until next time, happy investing!

Stock Ticker.. Quote @ 10/2/11..  Quote @ 10/8/11..   Net Gain/Loss

SYY - Sysco $25.90     25.78   -0.12
Distributes food and related products to restaurants, healthcare and educational facilities, lodging establishments and other foodservice customers.
CAG - ConAgra $24.22     25.03    +0.81
North America's packaged food company serving grocery retailers, as well as restaurants and other foodservice establishments.
BMO - Bank of Montreal $55.85     55.42  -0.43
Offers a range of credit and non-credit products and services directly and through Canadian and non-Canadian subsidiaries, offices and branches.
ABT - Abbott Labs $51.14    51.53   +0.39
Diversified line of health care products. Segments include Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Vascular Products.
BMY - Bristol-Myers Squibb $31.38   32.38  +0.58
Discovers, develops, licenses, makes, and sells pharmaceuticals, with particular success in cardiovascular treatments.
DUK - Duke Energy $19.99    19.79  -0.20
An energy company with an integrated network of energy assets. The company manages a portfolio of natural gas and electric supply, delivery and trading businesses.
HTS - Hatteras Financial Corp $25.16   24.07   -1.09
A strong REIT in a strong sector and it pays high yield.
MMM - 3M $71.79   73.82  +2.03
Operates in areas that include health care, industrial, and transportation. Products include Post-it Notes and Scotch tape.
IBM - IBM Corp $174.87   182.39  +7.52
Reliable company, just beat out Microsoft for higher market cap. Globally integrated innovation company, serving the needs of enterprises and institutions worldwide.
UTX - United Technologies $70.36   71.46   +1.10
UT owns Carrier heating and air conditioning, Otis elevators, Pratt & Whitney aircraft engines, Sikorsky helicopters, and many more!

Grand Total +10.59

ROTH IRA or the highway!

Why would you want to pay taxes on your dividends? Aren't we taxed enough!! If you want to continue to pay dividend taxes then continue to hold your stocks in an Individual taxable account. If not, open a Roth IRA ASAP! Transfer all of your stocks immediately into a Roth IRA. The benefit of moving dividend paying stocks from your taxable account to a Roth IRA is that you will no longer pay taxes on the dividends. There are huge advantages of Roth IRAs.. they let you contribute dollars you have already paid taxes on, but then withdraw the money in retirement tax free! Just think of cashing out when your in your 60s and no one can touch your dinero. Invest a few dollars each day of your life now while in your 20s, 30s and even 40s and then you'll be "living in the effin lap of luxury" - Method Man. Have a great rest of the weekend and keep investing!