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Archive for November, 2010

Posted by MartZee November 30, 2010

PAXHX replacing ATIPX in my ROTH IRA account

I am replacing ATIPX with a new mutual fund PAXHX in my account. I will not sell ATIPX yet, but I will not be buying this mutual fund anymore. I am “putting this fund on the shelf“. Reasons for not buying this fund anymore are:

  1. ATIPX is no longer an NTF fund, so I cannot be investing small amounts without paying a fee.
  2. ATIPX is no longer provided by my broker.
  3. PAXHX has better performance, dividend yield and distribution yield (see below).

Here is a short comparison:

Compared Funds PAXHX ATIPX
  High Yiled Bond High Yiled Bond
  NTF, No Load No Load
Expense Ratio 1.04% 1.24%
Fund Price
(11/30/2010)
$7.79 $9.26
YTD Return
(11/30/2010)
+9.72% +9.23%
Distribution Yield (TTM)
(11/30/2010)
8.25% 6.10%
Dividend Yield
(11/30/2010)
7.57% 5.61%
Portfolio Turnover 58% 155%

Based on the above data I will be now investing into PAXHX fund.

PAXHX, Barchart.com
Posted by MartZee November 30, 2010

GM? No thanks.

I recently found an interesting article about General Motors (GM) sometimes called Government Motors. The article described what I already think and agree on in regards to this company and the biggest thievery in recent history. All what bothers me about this real-socialism had happened with this company. Our government did a great job by providing a lesson to all who seek easy life, do not want to take care of themselves, are lazy, always rely on someone else, are jealous to those who strive and try every day. Yes folks, this is how socialism works!

Recently GM went back to markets issueing their IPO. The money generated from the IPO went straight to the government. The government has a vested interest in the company and wants their money back. So of course we are going to see an inflated IPO price that does not represent the valuation of the company.

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Posted by MartZee November 14, 2010

Stocks That Pay Monthly Dividends

There is a reason that most mortgages are paid monthly and not quarterly. Banks are looking for reassurance the payments will continue to come in. In much the same way, many investors find comfort in owning stocks that pay monthly dividends. There are several advantages to receiving dividends each month over the traditional quarterly, semi-annual or annual dividends. Here are a few, along with some monthly dividend payers:

  • Consistent Income
  • Easier to Budget
  • Compounds Faster
  • The Monthly Dividend Company

Monthly Bond Funds

iShares Barclays 1-3 Year Credit Bond (CSJ) | Yield: 3.73%
Vanguard Short-Term Bond ETF (BSV) | Yield: 2.74%
Vanguard Intermediate-Term Bond ETF (BIV) | Yield: 4.32%
Vanguard Long-Term Bond ETF (BLV) | Yield: 5.16%

Canadian Trusts

Baytex Energy Trust (BTE) | Yield: 6.2%
Enerplus Resources Fund (ERF) | Yield: 9.4%
Pengrowth Energy Trust (PGH) | Yield: 8.5%
Penn West Energy Trust (PWE) | Yield: 8.8%
Provident Energy Trust (PVX) | Yield: 11.6%

Special Purpose Funds

Enerplus Resources Fund (ERF) | Yield: 9.4%
Eaton Vance Tax-Adv. Global Div. Oppor. Fund (ETO) | Yield: 7.7%
The Gabelli Global Utility & Income Trust (GLU) | Yield: 6.3%
Pimco Global Stocksplus Income Fund (PGP) | Yield: 10.5%
LMP Real Estate Income Fund Inc. (RIT) | Yield: 8.2%

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Posted by MartZee November 04, 2010

My goal with Lending Club

Recently I was thinking what I want to do with my Lending Club account. Actually Rob Garcia asked me that question the other day when we had a short discussion about my plans and goals when investing with Lending Club. I answered that I wanted to invest and reinvest for upcoming next three years and then I’ll see.

I continued thinking about his question. If we are suppose to know our plans and goals prior to investing, well I definitely had no idea what I wanted to reach. Do you know the TV commercial ING Gazillion?

Well, I felt like the guy in this commercial. “So I blindly throw money in it and hope something good happens…”

It is time to think what my plan should look like. I tried to remember why I started investing with Lending Club at first. I wanted additional income which I can invest and thus increase my investing and retirement savings. When I was searching for some money making opportunities I came across Lending Club and even though it wasn’t what I was looking for at the beginning I liked the idea and opportunities so much that I decided to give it a try.

Now I am glad I did it. Currently my return is 12.47%. Where else can you get it?

So I started to think about my plans and how to fit Lending Club into the entire picture. Since I still want additional income, my goal now will be to save the same way as I am doing so far – $100 every month, reinvest all proceedings (principal and interest) as long as my expected monthly income reaches $200 after tax. Once it happens, I will split income, reinvest $100 and withdraw the other half for either spending it on my own or reinvesting into my ROTH IRA account.

Here is my goal so far:

Lending Club Goal
15%  

So far I accomplished 15% of this goal.