A Little Active Income Goes A Long Way

A Little Active Income Goes A Long WayGenerating enough passive income to cover the cost of living is the holy grail of early retirement. However, it’s quite difficult to amass that big lump sum to generate enough passive income to live on. People spend more money as they get raises so they need more and more income every year. Early retirement offers a way out of this cycle by forcing us to examine how we make and…

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Index Investing Becoming a Victim of Its Own Success

Index Investing Becoming a Victim of Its Own SuccessToo much of a good thing can end up being bad. That includes using a benchmark index as the basis for an investing apparently. In the July 2010 paper (download here from SSRN; acknowledgement to Stingy Investor where I found the link) On the Economic Costs of Index-Linked Investing, NYU prof and NBER research associate Jeffrey Wurgler reviews some research results that are disquieting for investors who follow a passive…

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Dividend Investing at its Best

Dividend Investing at its BestWith all the negative attention the stock market has received over the past 24 months its easy for investors to get itchy waiting for turbulence and fear to take hold once again. For the majority of 2010 all I’ve done is dividend investing at its best: dollar cost average (DCA) into my existing portfolio of high quality dividend stocks with cash, my line of credit and proceeds from the sale of…

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2 Things Investors Don’t Want in a Dividend Stock

2 Things Investors Don’t Want in a Dividend StockThere is a lot of information on the web that covers how to select stocks, even dividend stocks. In this post I am going to take the negative angle and present what I feel to be three things that I, as a dividend investor, do not want to see in a dividend stock. In my view, if any of my own dividend stocks exhibit any of these traits then that…

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