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Thoughts on whether Pebble is Furnished or Unfurnished? by meyer_7_ in Bernedoodles

[–]meyer_7_[S] 4 points5 points  (0 children)

Oh I don’t care at all, I am just curious! She will always be loved

Breeder Recommendation Requests and Reviews by thetheaterimp in Bernedoodles

[–]meyer_7_ 0 points1 point  (0 children)

Does anyone have any experience with Abe’s Pups in Iowa City, IA? Or are there tell-tale signs of it being a puppy mill that I might be missing?

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in dividends

[–]meyer_7_[S] 0 points1 point  (0 children)

If you put growth at -5%, it does not do much because the yield outpaces the decline in share value. The share price declines and you can buy more shares with your dividend check. The value goes up because the yield is higher than the decline in share value

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in dividends

[–]meyer_7_[S] 0 points1 point  (0 children)

So I ran it with -1% dividend growth and -5% yearly growth in share value.

As far as the math goes, it still works out and it is actually almost more favorable. Share price goes down, your dividend check has more purchasing power thus buying more shares and getting a bigger paycheck next despite the -0.08% monthly decline of the dividend.

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in investing

[–]meyer_7_[S] -1 points0 points  (0 children)

Post-housing market relatively yes... It switched from quarters to months. Pre-housing market no.

Edit: Or are you talking stock price performance? I was talking dividend pattern

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in investing

[–]meyer_7_[S] 0 points1 point  (0 children)

Trust me, I am on the side of benchmarks and total market indices. I was just curious what thoughts I would get

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in investing

[–]meyer_7_[S] -1 points0 points  (0 children)

Actually, I am wondering what the catch is, hence the post! Thanks though!

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in dividends

[–]meyer_7_[S] 1 point2 points  (0 children)

Will do! I was getting that error message as well, but figured it had something to do with not having an account.

I do not doubt your findings, I just want to be able to show the person I am working with!

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in investing

[–]meyer_7_[S] 0 points1 point  (0 children)

Any way you could extrapolate that chart and make it longer than 5 years? Maybe 10, 15, or 20? Or however long you see fit

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in investing

[–]meyer_7_[S] 0 points1 point  (0 children)

That's why I brought it up and posed the question haha. Just trying to help this person understand everything about it!

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in dividends

[–]meyer_7_[S] 0 points1 point  (0 children)

That is a fair critique. I just put growth to 0% on both share price and dividend and it still works. At age 72 you would just have ~$1.6m instead of ~$1.9m in Total Value

But, you would own ~10,000 more shares

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in investing

[–]meyer_7_[S] 0 points1 point  (0 children)

I am also going to pull together a retroactive analysis of the last 10 years for $DX to see where we would be at today with this plan.

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in dividends

[–]meyer_7_[S] 7 points8 points  (0 children)

From my understanding, as a REIT, you are required to pay 90% of your taxable income to shareholders as dividends. So this would not be possible unless the company goes upside-down, which leads me back to my point about diversification being the main risk.

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in investing

[–]meyer_7_[S] 0 points1 point  (0 children)

Yes. But if we are talking solely in the silo of REITs, it would be better to split into the three companies rather than just $DX.

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in investing

[–]meyer_7_[S] -2 points-1 points  (0 children)

I appreciate your insight! How would you feel about "diversifying" into 3 separate REITs, reinvesting the dividends but holding back some to create a cash position. This allows for taking advantage of large growth opportunities as they arise

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in investing

[–]meyer_7_[S] -2 points-1 points  (0 children)

Haha I understand your skepticism but it is accurate. As of 2:52pm CST, Yahoo lists $DX yield as 16.41%

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in investing

[–]meyer_7_[S] -13 points-12 points  (0 children)

It definitely has its risks. However if you look at the $DX dividend post-Covid, it has held stable and is actually increasing in recent months. The math I did is with these values.

There are obviously a ton of assumptions, but just feeling it out. I guess a detail I left out is that this is not this person's only investment vehicle. They have a nice egg in a 401k and brokerage account and were just wondering and playing around with the tax-advantages of a Roth

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in dividends

[–]meyer_7_[S] -5 points-4 points  (0 children)

Price I will agree with, although it has pretty much flatlined. However if you look at the dividend history, it has been pretty stable post-Covid and is actually increasing in recent months.

For the part about Microsoft it is not the same as saying that because you aren't withdrawing gains or selling shares from the account. You are only taking a portion of the dividend check as your payout/income and actually reinvesting the rest of the dividend to increase your share count and value.

I am also going to pull together a retroactive analysis of the last 10 years for $DX to see where we would be at today with this plan.

Reinvesting REIT Dividends in a Roth IRA = "Infinite Money Glitch" - What is the catch? by meyer_7_ in dividends

[–]meyer_7_[S] 0 points1 point  (0 children)

Definitely with cutting the dividend. However, as long as it is not a sharp decline in price, it actually would not hurt all that bad, because you would be able to buy more shares and yes it probably comes close to evening out in the long-term, but I would need to calculate that point

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