Europe, Bislett, Preferreds discussed on Financial Issues with Dan Celia
Portfolio without. Rolled-over several company into. Company company, and what I like to do is wrong with the Dan plant. I looked at the allocation model a. And between fifty five to sixty five. All this money is in an IRA. And currently fifty eight. And the question I have is looking at that allocation model I'm trying to plug in the fun. And I started let me know what my thought process started looking at the Bislett and then abroad. And the first thing I looked at the yellow the. That were highlighted in yellow finds it highlighted blue. Bugging in those funds and. Does that sound like the right approach to go with with the barrow? Well, I think it definitely is the right approach. I I would just caution you when you're putting money if it's not on the by list, don't buy it. So don't buy anything off the broad list. Only off the bye list. But I like the idea of of getting some of those foundational stocks. That's the yellow these are stocks that these are companies that are just good solid super solid. Very large. Good good companies that I call them foundational stocks because they're kind of companies you put in there, and you never sell them. You just you know, you feel very confident that over seven ten year period, they're going to do. Well, and they use keep them in there. So I like the idea starting with some of those might be on the bias. I think that's a great idea. Blue our income stocks. It doesn't mean you can't add them. You certainly can the reason why they're highlighted in blue is because they for people that are using the income model, which you wouldn't use you shouldn't use which are not using. But the income asset allocation model that just kind of gives them a heads up of what to look for. So I have stocks that produce good dividends on the list. But they're not highlighted in blue because for one reason or another I don't consider them. Strong enough or consistent enough or whatever it might be from an income perspective. So, but it's okay to have those in there because I have some like on the material side that industrial side that are both that are blue and foundation or the lettering might be yellow and highlighting on it is blue. It's hard to see that yellow. But that's that's fine. And I'll have a problem with that. So I think you're on the right track. Keep going slow if you need something to fill your sector, and there's nothing on the by list. Just wait it out. Don't go off the broad list. Just keep that money. You know, sit in the money market account until something shows up and then start to fill that gradually tried to, you know, work towards the next couple of years of having two or three maybe even four different. Companies in every sector so with that in mind dole by if you have five percent in energy don't put off five percent of your energy position in one stock. If there's only one on the list, so just to give you some fundamentals air about that. Okay. Question here on your preferred let. At eight twenty four. Sample. Doc in buy and do you have to hold the first time? So so the preferreds are primarily for income that they're for people that are using the income, and yes, you buy and you never sell them. There's only two ways that you could take a loss on your preferred is you tried you sell when it's down or they go bankrupt. That's that's it. At some point in time. They're going to get called now. Some of them have a state is called date. Doesn't mean they're getting caught on that date. They may not get caught for ten years. And they might be have a call date of next year. It's just there continuously callable you could buy today, and they could they call it tomorrow. So it really is kind of a meaningless date. But nonetheless. There continuously callable, but they may never get called. I mean, I had a preferred utility stock in my IRA som- some years ago and. It was paying significant dividend because it was old back when interest rates were high and they. Thirteen years never got called. And so all the gain. I was getting on. It was from the income was producing. But never got called the end, frankly at the price that it was paying. I wouldn't. I didn't care if it ever got callers opening never would. But. So they're not something you you're not going to sell them. You're not going to take profit on them. You're not going to sell them. You buy them. You put them in the portfolio. That's the end of it. And when they're called you'll notice you don't have many more, and you've got all the money now sitting in your money market account. So they get caught at twenty five dollars. The preferred always gets called at the par value. So if you pay twenty three and it gets called tomorrow, you're going to get twenty five if if you pay twenty six and it gets called Tamar you're going to get twenty five so twenty five dollars a share. So sometimes it's the par value fifty sometimes seventy five sometimes it's one hundred but generally most of the ones on my list are are twenty five. And you can only buy into these. If you look into taking it come out. Yeah. There's no reason to own those. There's no reason for somebody that is looking to grow their portfolio. There's no reason to do that. I just read an article this morning. The Wall Street Journal Kalkin about what's happening to prefer in Europe. And. But they were they were talking about it. Now, maybe Europe's differ. Maybe people do. So do it a lot different there? There are people. I know there's partners of ours that own because they like it because it's just kind of conservative position. There's nothing wrong with that. But I just I I I don't want anybody to expect. To make money from it in any other way. But the five percent that it's paying every year. So you can look at it say, well, you know, what I know. I'm going to get five percent every year that is true. But I I don't want to be a look at it and say because if you're if you're buying it for that reason, then you're going to tend to panic when it goes down, the nineteen dollars a share, and you're going to be thinking. Oh my gosh. I got stuck and you're going to call me. And I'm going to say, what do you have any for income, you're going and you're going to say, no. And I'm going to say well shame on you. Don't call me. You should know got it. So I'm just giving you just giving you a heads up. I'm looking out into the future. But if you buy it for income, and you say, oh my gosh. It's down to one nine dollars a share. I'm going to say who cares? You're still getting your income. And it's not gonna change because you bought it for income to supplement your income. You're taking that income every time it it. It's paid and you're making that income no matter what that share price is. And worst cases, they never call it for the next couple of years, and you're getting all this income, and it does get. Get called you're going to get twenty five. So. That's why I kinda give you the heads up on that. Yeah. Maybe. Not a good comparison. But it would be like a step better than like say a ladder CD approach. You mean for for conservative like cash you want? Well, the need that cash future say ten years. I mean, I guess it would be better. It's safer. It's never going to go down in value. So the ten years from now. You know, you're going to have your your when you're wanna get rid of it, you get to dictate when you get rid of it because you're gonna get your principle back, plus whatever interests you've earned so from that perspective. It would be better. Yes. It would be better than than preferreds preferred prefers are pain a little bit more, but ten years from now, you might still own that preferred, and it might be nineteen dollars a share. So now, you're faced with why I need the money. I'm going to have to sell it. I wouldn't want you to do that. Gotcha. Lost money in ten years. No, you wouldn't have lost money even in nineteen because for ten years you've been getting the income. So I'm just saying from from a safety perspective. The CD's would be better. Very helpful Dan feedback. Alright james. Thank you for your partnership, you art. I will. I wish you all the best. God bless. Folks,.