The Beauty of A Flexible Income Investing Strategy

In February, I wrote an article titled “Why Boardwalk Pipelines Is An Absolute Steal At $13.” That article was uncharacteristic compared to the high-quality dividend stocks I usually discuss because it involved a highly unique set of circumstances coming together. To summarize the obvious: you had a pipeline that had never lowered its distribution since becoming publicly traded in 2005 suddenly slash its distribution by 81%, from $0.535 to $0.10 quarterly. Because most energy MLPs are held for their ability to return large amounts of cash to unitholders, most long-term investors in this MLP had a “WTF Am I Doing With This Albatross In My Portfolio?” moment, cutting the price of the partnership in half within a single day of trading.

At the time I wrote that article, the thesis was more of an approximation than a precision. I couldn’t, and still can’t, articulate a moment in which … Read the rest of this article!

Roth IRAs for Kids: Half-Century of Compounding

According to Fidelity, 61% of children growing up in households with annual income above $250,000 have a Roth IRA. Sometimes, we have conversations in broader society about the privileges and benefits that accompany being born into wealth, but often the discussion only occurs in a general sense without the pin-pointing of specifics. Well, here’s your specific.

We probably live in a world where I would guess a majority of Americans do not understand what an individual retirement account is. I would guess that maybe a quarter of Americans could tell you that the IRA annual contribution limit is $6,000 or $7,000 if you are over the age of 50.

That is not how America’s wealthy operate. They know that they need to get their kid’s a job, even if is something trivial, so that they can meet the income requirements to fully fund the Roth IRA (they know that the … Read the rest of this article!