Birchtree's Account Talk

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I'll be celebrating the 50 year speech with my mute button - that's the best I can offer. I'm just so tired of the problems the Great Society has caused this country. Chastise me if you must...
 
Birchtree said:
I reinvested three dividends today at excellent prices - it only cost me -$120K in pain. The $120K will return at some point but my dividend reinvestments create income that may be in perpituity. So I'll remain positive through out the rest of the year, afterall it's not 2008. There's so much cash on the sidelines that we may rebound faster than we went down - if that happens then I'll accept it. But I would like to see a slow progressive rebound so I can participate in further dividend reinvestments in September. Roll the dice and place your bets - this is exciting.
Click to expand...

It's going to be a good day to buy.
 
So I'm on the come back trail again - what else is new. I've been long since I dumped over +$800K into the well in December 2008 and have never looked back. The advantage of margin is that once you build a balance the market doesn't take it away leaving it available to spend on days like yesterday. My triumph will prevail and the buying power will build rapidly when it begins. I'm just treading water, waiting, waiting for the herd to rumble again and anoint my strategy. Snort.
 
Got a question...
worried a bit about salary limitation on Roth IRAs. Right now, the wife and I are good. However, I see a scenario in less than ten years where I'll be making my retirement pension from the military, my pay from second job and then my wife's pay... It will get us close to that limit. I assume the limitations are adjusted gross income, so I can play a bit with that.

What I am Hoping is that the second job is another Govt job I can simply continue to put a max towards TSP. that will be a big help. What are a few other ways to dodge the limit a bit? Roth for myself, wife... Etc
 
There are only a few ways to reduce AGI - having your wife stop working is one. That's what I'm planning for next year. When my wife retires she won't be contributing to our AGI which will give me flexibility to take capital gains. She won't access her defined contribution plan for years. I suspect over time that the Roth IRA limits will be raised - I know it's a slow way to build a base but dividend reinvestments will add up nicely. Your Uncle doesn't want to be too generous. I have a margin account which allows me a tax deduction against my dividend income - remember qualified dividends are taxed at 15% along with long term capital gains - this strategy drives folks like amoeba crazy. The idea of limiting AGI is to save on ObamaCare taxes. Getting retirement income provides security but it also keeps you in the IRS fold.
 
I also wanted to say that taking capital gains inside a Roth IRA can really boost your balance - so you should concentrate on equities. Diversification is important but having a few heavy positions will build your base quicker if you take capital gains. I believe our mega trend secular bull market will continue for years and should provide remarkable opportunities to increase wealth.
 
September 3rd starts the holiday season for my oceanic account. On 9/3 I'll take in 24 dividend reinvestments. So if the market decides to weaken that's a positive for my long term income stream. I've always liked golden prices - that's why I play this game. And I still plan to make $1M this year in growth and eventually start using margin again for 2014 to really pump up the gains. I think we may have placed a kangaroo tail today.
 
Birchtree said:
September 3rd starts the holiday season for my oceanic account. On 9/3 I'll take in 24 dividend reinvestments. So if the market decides to weaken that's a positive for my long term income stream. I've always liked golden prices - that's why I play this game. And I still plan to make $1M this year in growth and eventually start using margin again for 2014 to really pump up the gains. I think we may have placed a kangaroo tail today.
Click to expand...

how far are you from making 1M? awesome job btw, i'm planning to jump back on the birchtree express soon :nuts:
 
At the end of July I was at +$800K - only $200K away. I had to make only $104K in four weeks of August


and couldn't do it. So after we close today August will take its bite and then I move forward for September. I'm sure I'll achieve the +$1M goal sometime this year - the only question is when. And if it doesn't happen then I'll try for +$2M in 2014 - using margin will help me leverage any future gains. The more you have working the faster the gains.
 
August was a mirror of June and then perhaps September will be a mirror of July. In June the oceanic gave back -$173K and in August we gave back -$172K, July had a gain of +$308K and here's high hopes for the worst month of the year - September. I'm now +$628K for the year to date and have four remaining months to collect the prize of +$1M. This week however the oceanic looked like this: -$9K, -$120K, +$18K, +$19K, -$60K for a give back of -$152K. FWIW here are the weekly totals: +$96K, -$51K, -$100K, +$35K, and then the grand slam of -$152K. So I'll see what September has to offer and the rest of the year - if I can reach the +$741K I earned in 2012 I'm happy, but I know I can do better. I'm eternally optimistic as the wife would say. Now I can expect to get some golden prices for my dividends - there's always a silver lining.
 
Today I sold 17 of my 20 stocks - all with gains of 25% to 42% gains - I may buy back those stocks sometime in September.
 
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