What is a REIT and How Are Dividends Received from a REIT Taxed?

This year, we started a financial education series geared towards educating beginning investors and more specifically, beginning dividend growth investors.  Our first two articles explain what a dividend is and the dividend payout ratio (and how to calculate it). In this article, we will take a deeper dive into one specific type of holding that can be found in many dividend investors’ portfolio.  This holding typically pays a higher dividend, which is why dividend investors are always on the lookout for a great one. If you’re looking into becoming a dividend growth investor, you better get used to reading these four letters…REIT. Here is a deeper dive into what a REIT is and how dividends received from a REIT is taxed.

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Time to Negotiate Auto & House Insurance

Time to make another fight for my money, something that we should always do, with every purchase decision in our life.  I have recently had a few items drop off from my driving record (minor items, I promise!), pushing me to look at bills that are costly, on an annual basis.  Outside of the mortgage/house payment, what else is very expense?  Yes, auto and house insurance, something that I was spending approximately $1,425.00 combined for the year.  It is time to drill this expense down!

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What is the Dividend Payout Ratio & How Do You Calculate It?

In a recent article, Lanny broke down what a dividend is and highlighted what is so great about receiving a dividend.   When I first started learning about dividend investing, there were a lot of articles and emphasis on assessing a company’s dividend payout ratio.  So I thought I would take some time today, provide a definition for the payout ratio, show how to calculate the metric, and some other details/tricks of the trade that we have picked up over the years as we continue to invest in dividend growth stocks.

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5 Financial Mistakes I Made in My 20s and How They Cost Me Thousands of Dollars in Dividend Income

Mistakes.  We’ve all made them.  I’ve made my fair share of mistakes over the years, professionally and personally.  Sometimes, the best way to learn is to experience the pain yourself.  It is funny, my mom and I were talking over the weekend and she told me that my grandpa always used to tell her that “learning is expensive.”  This didn’t specifically relate to education, either.   This related to different life situations her and my dad encountered over the years.   This year, I’ll be turning 29.  My 20s will soon be in the rear-view mirror.   I’ve made plenty of financial mistakes over the years that have likely cost me a lot of dividend income.  With the benefit of hindsight, I wanted to share my top 5 financial mistakes and calculate the true impact they had on my life and my dividend income.

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My Older Brother, His Finances, My Help, A Dream

I love my older brother.  I would do anything in the world for him.  I think, care and worry about him all of the time.  No, nothing is wrong, at all.  It’s not that kind of worry, so readers, please don’t, “worry”.  I always think about how great of a person he is and the potential taking on life, in full force, as he has just as much energy as I do.  The one HUGE area he has potential in, is guess what?  His finances.  He’s not completely awful with money, but it’s moreso that he has so much potential to be that much better with money.  When it comes to family, finances is an area that you would kill to make sure that they are taking advantage of every single opportunity that they have.  I want him to be right there with me, if possible, or even have his finances in better order than mine!  That’s what we do as family.  However, it wasn’t looking like that was going to happen and after years of working with, talking to and showing him what can happen, he did one thing.  He finally said, “Lanny, please help me be better”.  That has been the best statement I heard from him all year.   Continue reading

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Tax Reform and Tax-Advantaged Savings Accounts

The Tax Reform has been etched in stone and the dust has, for the most part, settled.  I wanted to teach/describe to the reader/ to readers that there are still advantages to the tax-advantaged accounts in 2018, even if we are in slightly lower rates, with a few other minor things to think about.  Therefore, this article will go into detail on the pre-tax 401(k), Traditional IRA and the Health Savings Account, in relation to the Tax Reform and how it can still open up more cash to invest.  I will have a few tid bits at the end, to think about, as well.

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