A new opportunity for income growth
Master limited partnerships constantly have to raise new money, which explains why Western Gas is selling 5 million units.
ok, fun post to read but that no-equities strategy????
1. qualified dividends are currently abundant and are taxed at either ZERO or FIFTEEN PERCENT MAX.
2. your bonds will be taxed. treasuries pay you virtually nothing. CD's pay you virtually nothing. muni's are ok, but have significant future credit risk and of course interest rate risk.
3. what if you live to be 95 (more and more common)? that means you have 40 more years to go at age 55 and must earn over that span enough total return to pay taxes AND offset the effects of inflation, which will likely be rising sharply in the next decade due to the currency debasement.
penny wise and pound foolish? see a professional for at least some counseling before adopting your strategy as a long-term plan. ask them to explain long-term asset allocation and the wonderful returns provided by a balanced portfolio with opportunistic rebalancing" of the account.
just sayin .....
People get locked into phrases and axioms. My favorite has always been: "Bonds are the house you live in."
Yes, that's true. But, nowadays with Europe imploding, the new phrase is:
"United States utility companies who only do business in America and post government-approved dividends are the house you live in."
I know a lot of investors whose entire portfolio is utility stocks. They will never set the world on fire, but they pay the "utility bills" every month.
The whole world is moving towards investing in "America Only" stocks.
The general consenus is that at the age of 55, it is time to go conservatize your portfolio. Move away from equities to bonds, treasuries, CD's, muni's, all that. And it's true. I've got a bucket full of utility stocks. I'm not a teenager anymore, and this is the way I go.
Security in a "security" is important when you get to my age. That's why I never fly on an Airbus plane.
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