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Now you're just talking out of your *ss. You read my recommendation for a senior citizen then questioned why I had seemingly "changed" my allocation recommendation to a 28 year old. I didn't. It's called age-appropriate diversification. So elementary but so confusing to you.
Nope the thread was not about a senior citizen. Your memory is off
KMI just hasn't gotten down to a price where I want to buy it. Even with the drop in oil, KMI has maintained its share price. BTW..KMI is not an MLP but a holding company so there isn't the need of dealing with K1s at tax time.
To comment on the OP, I am holding one NG MLP at the moment, and the distribution yields are still far far better than any other investment I hold. It is important to note, as with any high yielding investment, that one should not invest more money than one can afford to lose completely. I consider this somewhat safer than going to Vegas and putting my investment dollars on black.
To anyone considering investing in MLPs, it is a good idea to be comfortable with passive vs. portfolio income and have some understanding of how the taxing of passive income works at the individual level.
20 years ago MLPs were almost always toll-road like energy transportation companies. With the shale and other oil boom since mid-2000 we got the explosion of E&P, service, sand and otherwise unstable MLPs. To top it off many off those went on a debt-fueled expansion strategy. They are now loaded with debt and sneakily kept on paying distributions while expanding debt at the same time. Now the chickens come home to roost. If energy prices do not recover fast I smell a wave of bankruptcies coming. And I don't expect such a price recovery. Fortunately I avoided this area largely but I do own a small position in CRE, recently bought out by BBEP. With the amount of debt they have I expect bankruptcy by 2018. I'll hold it because it's not a significant loss but anything other than bankruptcy would be a bonus. What a disaster. Many income investors bought into this a lot in recent years.
I do not call this a disaster. In fact there is a great garage (fire) sale going on with people fleeing the energy sector, and the prices are going to get even better.
Have to trend lightly though, there will be some bankruptcies. I think BBEP will end up OK in the long run. I do not own any of it yet but I am watching it like a hawk.
ha ha ha ha , not only don't you give up but you don't read !.
wrong again as usuall.
you are talking again without reading . if you are referring to the chart i posted that shows the results of all the different allocations i can tell you did not read what it represents.
it is not based on 6% withdrawal rates. if you read the article it is a 6% lifestyle .
that means it is based on the traditional 4% withdrawal rate from the portfolio inflation adjusted and they can combine that with other income ,in this case the hypothetical retiree can add 2% social security income on top of the 4% from the portfolio for a 6% life style .
our own retirement budget in july will be 4% from our portfolio to start and about 1.5% from other income sources we have since i am delaying ss. total expenditures will be a bit under 6% for us expressed as a percentage of our portfolio. but of course only 4% is actually being drawn out of the portfolio.
don't forget the 4% rule is only about drawaing from your portfolio. you can have a pension, or ss and your lifestyle based on the pension or ss and the 4% inflation adjusted from the portfolio.
the testing of the portfolio itself is is all at the traditional 4%. but without reading you would never know that would you.
here let me google the part you didn't read !
" They have a Social Security benefit equal to 2% of their retirement date assets, and so to meet their lifestyle goal of 6%, they need to generate additional income equal to 4% of their retirement date assets."
as far as selling annuities ,wrong again . i am an industrial motor control specialist.
You need to stick to repairing cars because math is not your specialty.
Again with a bond / stock portfolio you don't have to take 5% out for life. With history as our guide, the portfolio goes up. Soon you can take out 6%, 6 1/2, 7%, 8% or more. MEANWHILE with an immediate annuity you are STUCK in the mud at about 6 1/2% as inflation goes up and your principal is GONE!
Try crunching the numbers during that time period of the 60's that you cited. It was perfect for a 75/25 portfolio and a disaster for the SPIA. Numbers talk, while your ad hominem walks....
stop! get educated on this stuff. you are grabbing at straws and couldn't be more wrong . why do you think you cannot find any academic studies backing up up a single thing you think? the answer is your thinking is flawed and ,wrong.
when you have facts or write your own white paper come back and we will talk. don't bother replying until then, you just waste our time with nothing but what you think...
Last edited by mathjak107; 01-10-2015 at 02:41 AM..
KMI just hasn't gotten down to a price where I want to buy it. Even with the drop in oil, KMI has maintained its share price. BTW..KMI is not an MLP but a holding company so there isn't the need of dealing with K1s at tax time.
I've been long Kinder Morgan for 5 years, they were an MLP but recently consolidated. They were like a toll road for me.
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