It’s always time to buy stocks

If you’ve been following this blog, you know that I’ve been wavering in indecision about what to do with my excess cash. Sitting on it earning 1% interest is a terrible option because I’m actually losing money due to inflation and I can earn more than that on basically all of the stocks that I own because of the dividend, no matter what the actual stock price is. And you’d also know that I eventually…

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Some of my favorite dividend paying stocks

When you invest in dividend paying stocks, you invest like an old lady. It’s considered one of the most conservative ways that you could invest in individual stocks and in order to be effective, it has to be done over the very long-term. 10 years would be the absolute minimum I’d recommend and “forever” is even better. The hope is that I’ll eventually just be able to live well off the dividends I receive and…

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August 2014 Passive Income Report

August 2014 was a pretty slow month in terms of passive income, totaling $216.46. But, I added up the total, year to date and it’s around $2500. Not bad for the very little amount of time and energy I put into it. You can see my passive income report here. Something I am happy about is Iherb, which I am getting an increasing amount of money from each month. Something that seems to be working…

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Timing the Market vs. Buying a Quality Company at any time

These past few months, I’ve been saving my money and just using the dividends I’m receiving to pay off my margin loan because I think the market is quite high now and due for a correction. I also haven’t added any new positions or purchased any shares of the stocks I already hold for the same reason. Except now, I’ve basically paid off my margin loan, my emergency fund is fully funded and I’m just…

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Ethical Investing

When I talk to friends and acquaintances about investing and personal finance related things, one of the questions that I’m often asked is about what kinds of companies I hold stock in. I list things like Mcondalds, Chevron, Pfizer and Wal-mart and one of the comments is inevitably, “Those companies are evil and harmful to the world!” My short answer is that nothing is black and white and that the world I live in is…

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Real Estate or Stock Market Investing?

I was just listening to the Suze Orman Show on Podcast and she was talking about how she prefers stocks to real estate when it comes to investing. I most definitely agree with her, and my reasoning is exactly the same as hers. By real estate investing, I’m not referring to the house that you live in, but additional ones that you buy and rent out to others. When you have real estate, it comes…

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June 2014 Passive Income Report

June 2014 was by far my best month since starting this blog in November 2013: $604.57. Check out the report here, but you can see that Squidoo and dividend payments were both really high, and Amazon and Iherb were around average. Dividends fluctuate throughout the year, depending on various factors and it’s really something I have no control over. But, Squidoo did very well for me and the best part about it was that I…

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The Rule of 72

A simple way to estimate the time it will take for a sum of money to double is to use the rule of 72. Basically, you divide 72 by the interest rate, per year and the result is the number of years it will take for your money to double. For example: $10 000 invested at a 3% interest rate will take 24 years to become $20 000. Invested at 8%, it will take 9…

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High-yield = High-quality?

A mistake that beginning investors often make is going to a stock screener like Finviz and then simply searching for the stocks with the highest dividend yields, which in some cases are 10 or even 20%. If you buy shares of a certain stock worth $2000, it seems pretty fabulous to get dividends worth $200 (10% yield) or $400 (20% yield) every year. It seems like you’re make our original money back in 5 or…

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How often I look at my portfolio

I’m a long-term investor, which means that I’m more worried about what my dividend stock portfolio is going to look like in 10 or 20 or 30 years from now than I am about it in this current year. I know that there are lots of people who look at the market news and their brokerage account every single day and are paying attention to even little fluctuations in value. I would consider many of…

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Stocks are at record highs: what I’m doing about it

The stock market indices such as the Dow Jones Industrial Average and the S&P 500 are at some record breaking highs. At times like this, people often get into a frenzied like state and throw money around trying to get in on the action. What am I doing about it? Basically nothing. Although I do have a good amount of cash sitting in my bank account here in Korea earning 2% interest or so, it…

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Why I have not bought a house

As we all know, home ownership is a money-pit of never ending proportions. Maintenance, mortgage payments, insurance, taxes, major repairs, etc, etc, etc. At this point in my life, I could certainly afford to buy a small house with cash, or a much larger one with a significant down-payment. Except I’ve chosen not to. You might wonder why I’ve chosen not to do this because home ownership has traditionally been thought of an the cornerstone…

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Assumptions and why they’re not helpful

Everyone knows the old saying, “Assumptions make an ass out of you and me.” It’s kind of cheesy, but it’s definitely true in almost all areas of life, and especially with regard to personal finance. Just because someone doesn’t own a nice house and a fancy new car, doesn’t mean that they don’t have 200 000 or 500 000 or a million dollars in the bank. Maybe it’s that they choose to live a different…

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The Latte Factor

When people talk about frugality, something that gets kicked around quite often is the Latte Factor. That is people who go to Starbucks every morning and drop $5 on a specialty Latte when they could just make a cup of drip coffee at home and save themselves $4.80 each day, which adds up to over $100/month and more than $1000/year. And I get that. Frugality is all about the small choices you make each day…

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Living in Saudi Arabia: what’s your number?

My old English teaching friend and I have been talking about various options for where to move after Korea. I really could move to literally almost any country in the world because everyone seems to want a reasonably well-qualified and experienced English teacher. Except the only problem is that the places that are the most fabulous to live (ie: Thailand, Costa Rica, Eastern Europe) pay the least and are pretty weak on the benefits. While…

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Payout Ratio

One of my favorite metrics that I use when determining which dividend paying stocks to buy is the payout ratio, which according to Investopedia is: “The proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage.” It’s maybe helpful to think of it as similar to finances on a personal level. You have some money coming in each month and you can either spend or save it. Maybe you spend 50%…

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May 2014 Passive Income Report

This month, I earned $310.41 in passive income. Everything was pretty normal except for my Iherb earnings, which increased significantly to $24.99, mostly due to their free shipping special for most of May. Anytime I can earn over $300 for very little effort on my part is good news! Here’s how May 2014 compared to previous years. May 2013: $386.06 May 2012: $380.02 May 2011: $243.11 May 2010: $49.22 Please like & share:

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A splurge

I used to the queen of the frugalistas when I was paying off my student loans. These days though, I’ve been toning it down a little bit because I have a substantial amount of money in the bank, and I actually make a lot more money than I did compared to say 5 years ago (almost double). So this means that I am willing to have things that increase my enjoyment of life (2 cats,…

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Buying Stocks: How Limit Orders work

When you’re buying stocks, there are a lot of different kinds of orders you can use. I generally understand the basics of most of them, but in actuality, I only use 1 type, a limit order. For the dividend stock investor who is investing for the long-term, it’s all you really need. Check out Investopedia for all the different stock market order types. Here’s how a limit order works: 1. Buying stocks. If stock ABC…

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How much income?

One of my friends recently asked me about how much money I would need to invest to earn a certain amount of money each month. It’s actually quite easy to explain, but the actual calculations are a little bit complicated. I invest in dividend paying stocks and ETFs that pay a certain amount of money out in dividends/year. I hold some things on the lower end, such as VWO (Vanguard Emerging Markets ETF) at 1.2%…

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