Please excuse any random periods of seeming inactivity. I’m moving assets, and very busy with things at home. Thank you for your understanding.
I’m Pat Rosenheim, a.k.a. the PandA Trader.
So, I decided I should probably post about my #PLAN for the foreseeable future. A lot of people ask about my investment theses, so that seems to justify this post. Let’s see if I can even begin to support that statement.
I only post for my holdings, but they’re as accurate as I can make them. The symbols are; ABBV, AGD, ARCC, ARR, AWP, BF.A, BF.B, BFK, BGH, BKN, BST, BTA, BXMX, CLM, CRF, CSQ, CXE, DFP, DHF, DHY, DIAX, DNP, EAD, ECC, EVN, FFC, FHY, FIF, FLC, FPF, GAIN, GLAD, GLOP, GOF, GUT, HIX, HPF, HPI, HPS, HYB, IVH, JPC, JPI, JPS, KIO, LDP, LEO, MAIN, MAV, MITT, MMD, NAD, NEWT, NHF, NRO, NRZ, NVG, NYMTN, NZF, OIA, OXLC, PDT, PFD, PFO, PHK, PHT, PMF, PML, PMM, PMX, PSF, QQQX, RA, RFI, RNP, SAR, SPXX, STK, TLI, TPZ, UTF, & VGR. Quite a list, eh? (82 total issues held; 12 common stocks, 1 preferred share, and 69 CEFs, of which 16 are tax-free muni CEFs.) Most pay monthly! Only ABBV, ARCC, BF.A, BF.B, BXMX, DIAX, GLOP, MITT, NEWT, NRZ, NYMTN, QQQX, SAR, SPXX, STK, & VGR pay quarterly.
I will continue to screen using the method(s) outlined in my Watch List post(s).
I will continue to withdraw funds as needed to augment our income as outlined in my monthly income phase of The #Plan #UPDATE.
I will continue to “harvest” capital gains by selling holdings at new 52 week highs with “limit orders” in minimum 100 share lots so I can specify AON (All or None). I may also sell for other reasons (i.e.; because I can, I felt like it, I needed the money, etc.).
I’ll try to outline a bit of the rest of the #Plan each week with updates on my thinking, such as it is…
We just filed our joint return, and our combined taxable income was $4,665 so our tax liability was $0.00! I’m so proud! Words fail me…
So, one of my goals was to reduce or eliminate paying taxes and we are well-situated in that respect. Future years may see us paying a little tax, but nothing like we have been paying our entire lives. This year, we even got a refund of taxes withheld!
Now, about income; all the income from our Roth Ira accounts is untaxed and not reported to the government. My IRA is a *puny* tax-advantaged account, and is slowly being converted to my Roth IRA. Each conversion is at least a partially taxable event, so that might add to the possibility that we will at some point have to pay taxes. Our joint account is a taxable account, but we have tax-free holdings in there, as well as some that pay qualified dividends, like ABBV, BF.A, BF.B, GLOP, and VGR. I plan to make each holding pay a fairly equal amount so that I don’t have too many ‘tax-free’ holdings or holdings that pay ‘qualified’ dividends. I would like a level playing field there. Just because…
I like it. I don’t love it. Sometimes it is frustrating and/or confusing and/or obtuse. Dividends are often late. I am selling everything on ex-dividend day. Cash will be transferred to one of our joint accounts. I only have 4 securities left to sell, and have begun transferring cash to ind-PandA (either at Capital One Investing or Merrill Edge). I sold NEWT & VGR on March 19th and NRZ on March 29th. That leaves only BDCL which will be sold on April 12th. All of the cash should be transferred out by the end of April.
Capital One Investing – I am transferring our accounts to BAML Edge.
Fidelity – I have transferred our accounts to BAML Edge.
Capital One and Fidelity accounts will be combined. PandAjoint will be absorbed into ind-PandA, Fidelity Roth-P will be absorbed into Roth-P, Fidelity Roth-A will be absorbed into Roth-A, and IRA-P will remain IRA-P. Robinhood holdings will be liquidated, and the cash will be transferred to ind-PandA via our joint checking. What will remain is PandA, RothP, RothA, and IRAP, all at Merrill Edge. So much for naming conventions.
Now, a little about my investing philosophy; “If they don’t pay, I don’t play”. I LOVE dividends! So, if a stock pays dividends, I’m interested, and if they don’t I’m *generally* disinterested. Simple plan for a simple man.
Our #HYHRD (High Yield, High Return Dividend) portfolio is all about the income, so that’s what I look for in an investment; high yield while minimizing risk as best I can (dividend yields of ~5%+ & annual returns of ~10%+).
According to calculations done on my Google sheets, my current YOC (Yield on Cost) is better than that! I factor in the cash held in each account for the total portfolio value. The total value of the portfolio is now more correctly reflected on the spreadsheets because of this.
I am often asked what my “favorite” holding is, and I really can’t answer that. Here’s why; to have a favorite entails some sort of emotional attachment and I am not emotionally enamored with any of my holdings and would sell it all in a heartbeat if they fail to pay me. I’m tired of paying for things, and I want to be paid now. I just really feel like it’s “my turn”!
I don’t day trade, or swing trade, or play options (anymore).
If any questions are posted on my blog, I’ll answer them and include them here in future posts if I think of it when posting. 😉
I’ll also continue to try and be as helpful as I can on the StockTwits platform.
We received a $200 bonus in each of our Capital One Roth IRAs for transferring from Fidelity. Yay.
And, I have to tell you, I am absolutely loving this TDM dividend tracking software! I’m glad I renewed my PRO subscription.
We surpassed $125,000.00 in dividends received since #HYHRD portfolio inception on 4/4/12 on the 1st of August!
Everything is in a “holding pattern” until after the accounts have been transferred to BAML Edge in March.
How do you like the recent stock market action? Are you someone who will #BTFD or #STFR?
I do see some possibility of turmoil ahead. It usually begins with news items that start out with “Trump tweets…”, or something about the midget with the bad hair from North Korea, or something else equally sensational, so there’s that. Who will Trump fire next on this reality game show of his? OK, enough politics…
Let’s talk religion instead;
MILESTONE!: We have collected over $125,000.00 in dividends since the inception of the #HYHRD portfolio. This milestone was reached on August 1st, 2017. Next milestone will be $150,000.00 in dividends received.
I will be converting 1/5th, then 1/4th, then 1/3rd, then 1/2, and then the remainder of my IRA to my Roth IRA in January of each year.
I’m also moving our accounts away from Fidelity and Capital One Investing to a new broker, because Capital One Investing will not allow any investment or trades or purchases in my wife’s Roth IRA (this includes DRIP purchases!!!). This will be initiated by March 15th of next year, at the very latest.
On November 15th, Capital One Investing removed the restrictions placed WITHOUT WARNING on my wife’s Roth IRA that prohibited trading (buying and/or selling, and also dividend reinvestment). I immediately sold 300 shares of PHT and 1500 shares of PHK and bought 200 shares each of NYMTN & NYMTO.
Our joint brokerage can move at any time.
Capital One Investing also has this notice about your account(s) being moved to etrade when you login;
It should be noted that Capital One Investing has instructed their agents NOT to waive any account transfer fees in case any customers don’t want etrade shoved down their throats. Awful nice of them…
My Roth IRA move to a new broker will be initiated by March 15th of this year, at the very latest.
I am moving to Bank of America Merrill Lynch, specifically Merrill Edge for our new broker. BAML Edge beats most other brokers by a mile with 30-100 limited free trades and no annual fee. So, it looks like Merril Edge is the clear winner and I will get at least 30 free trades each month with Merrill Edge, which is enough for my needs.
I had a meeting with a representative at a local BofA branch, and made an appointment for Mar. 15th to initiate the transfers, leaving nothing at Capital One Investing or Fidelity.
Regarding Merril Edge; So far, I’m underwhelmed. Dividends show up a day later than the pay date. It’s hard to see all activity on one screen, but their math seems to be correct, so far. It’s early yet, so let’s see how it goes. I want to get the cash bonus they promised…
I will leave you with a (rather large) screenshot from my Google sheets that shows all of our holdings, ranked by total return (there’s also position size ranking, %change since purchase rank, rank by yield, type of security, frequency of dividend payments, total return), etc.;
PLEASE TAKE NOTE AND REMEMBER THIS!
I’m not telling anyone to buy anything or giving anyone any advice, because that’s illegal. You see, I have no letters after my name, like RIA, CFA, etc. I SIMPLY DO NOT GIVE ADVICE. I only tell (and show!) what I do. You, like me, are all alone in this.
And remember, always do your own due diligence!