Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[Hog's Gone Fishin]

I just dumped 10K each into ULTY , NVDY, MSTY, CONY and waiting until declaration day to add 10K of IWMY. IWMY is going weekly in October

By Oct 1 I'll be on pace to receiving around 60K per year in dividends. I wouldn't play these with true retirement money as they do carry some risk but I have developed Rainmans passion for dividends and have gone all in.

ULTY just declared their monthly dividend today at .9825 and the stock is at 11.25 ROI in less than a Year at that pace.

I like YMAG for a stable dividend ETF too but don't own it because the Yield is only 50% It just started paying weekly.

XDTE is another stable fund paying weekly at a 30% yield


****ing dividends are like crack!

[Rain Man]

Originally Posted by philfree

So I'm 63 years old and I have a life insurance policy for $250,000.00 that's costing me $300.00 a month. Let's say I have over a $million with no mortgage or car payment. I going to live off dividends. I drained my insurance policy a couple time some years ago so there's only about $5,000.00 in it. I'm looking to cut my expenses so I'm thinking about cashing out my policy, paying some bills and lowering my expenses that $300.00 a month. With the value of my house and the money I have I think they'll be plenty to leave for the kids and If I were to die unexpectedly everything is covered for the wife so I'm thinking I don't need life insurance.

What does the Oracle that is Chiefs Planet think?

I think the main purposes of life insurance are (from larger to smaller costs):

1. Providing income replacement to raise minor children.
2. Providing income replacement for a spouse or other family members to meet their living costs (e.g., mortgage) and maintain their lifestyle.
3. Some people may want to create a windfall for their adult kids or other relatives. (This could be a large or small cost.)
4. Cover temporary costs for a working-age spouse who might need to take time off work to handle death issues, either logistical issues or grieving.
5. Cover funeral costs.


If you're close to retiring and feeling good financially, I'm guessing that ...

Items 1 and 4 aren't an issue.

Item 2 may be an issue if you have a pension or Social Security that is vital for a spouse to be able to stay in the house and cover a mortgage or cover basic living expenses.

Your call on Item 3, though that's highly optional.

Regarding Item 5, I guess it's a guarantee that you can cover funeral costs if something really goes south and you get swindled out of all your money, or if you outlive your money. It's your call if that's more likely than the insurance company going bankrupt or something.

My wife and I have 25-year term policies that should be expiring relatively soon. We have no mortgage, no kids, and adequate savings, and we're both more or less retired now. We don't have pensions, so the only income replacement that insurance would cover is our Social Security. Something really bad would need to happen for us to not have enough for funeral expenses, so I don't think there's much of a case for us to continue with life insurance once this term policy expires. The savings will also help us make sure our savings lasts longer. It's a pretty notable cost. I think my wife and I pay about $3,000 a year for life insurance, which is pretty big chunk of after-tax income.

The one twist on this is long-term care. You can buy long-term care insurance, of course, but you only get a benefit if you go into long-term care, and that's not guaranteed to happen. However, it's guaranteed that we'll eventually die. If you've got enough money to front the costs of long-term care, a life insurance policy could pay back the surviving spouse for those costs if they occur. That's the concept that I've been pondering. If life insurance is cheaper than long-term care insurance (and I don't know if that's true), AND if you have enough money to pay for long-term care if it's needed, then I think this could be a good idea.

[BlackHelicopters]

Bitcoin for the win.