Monday, April 17, 2017

Wealth: Debt Optimization

Living with debt can be hard. No, really. Ever hear Dave Ramsey’s show? Hear his guest’s “debt-free screams” when they come on the show to publicly announce that they have eliminated all of their debt? Crushing all of your debt is a big deal and it’s not an unreasonable thing to do when you’ve annihilated a lot of debt. However, one thing that I feel gets missed in all the hustle bustle about identifying and paying down debt is that sometimes investing in other items can be more beneficial than paying down your debt. Please allow me to explain.

Everyone knows that debt is huge in the USA but just how huge? In 2015, studies conducted found that the average American has $15,609 in credit card debt. That’s not including student loans, car loans, home loans, or other much larger loans that are generally expected. That’s just the amount that was currently sitting on credit cards. If you do the math at the staggering 25% interest rate that some credit cards are subject to, you’ve got an amount of credit card debt that is by all intents and purposes insurmountable by a lot of households. For this type of debt, the Dave Ramsey, “attack the debt with a sledgehammer” is probably the best approach. However, once that type of debt is gone and one if left with only other lesser interest rate debt, there could be a much better direction to take.

Sunday, April 2, 2017

Wealth: Stock Alert - TGT


Target Corporation is a general merchandise store that distinguishes itself apart from others by offering great deals without sacrificing service or options. While Walmart can be seen as the corner store for deals and therefore a staple for many American homes, Target seems to aim for a more middle class clientele. Their brands are recognizable, their selection isn't lacking, and their service always seems to be a cut above other general merchandise stores. They offer clothing, groceries, and much more.

Their merchandise comes from a network of forty distribution centers and are then carrier through multiple channels to their intended Target locations that are primarily located across the United States. They also offer digital services through their Target website with added perks for Target RED card customers. The company's risk factors seem to revolve around the same risk factors that can affect all general merchandise stores. Most notably is whether or not they will be able to maintain a good reputation. While this would seem simple for some stores, Target itself can be an easy target as they already walk a tight line as they have been called the store that is "Not Walmart". In addition, if Target cannot stay ahead of the trends, they themselves will be given the boot in lieu of another general merchandise store that can stock items faster or offer more competitive prices. Lastly, items like the data breach that occurred some time ago can adversely affect business as they know it.

Saturday, April 1, 2017

Wealth: March Dividend Income

March 2017 Dividend Income

GME - $30.40
ARII - $6.80
QCOM - $15.37
STAG - $1.75
TGT - $9.00
EMR - $7.68
LB - $4.80
WFC - $8.36

Total March 2017 Dividend Income: $84.16
Total March 2016 Dividend Income: $20.40
Percent Increase: 312% increase

Now that March has come and gone, it's evident that the Dividend Scythe has been hard at work. If we're only looking at the change from the previous year to the current year, the percent increase has been phenomenal! It's enough for me to even wish for a positive increase year over year but an over 300% increase from last year is exactly what I want to see and more! Moving forward, I'm sure that I probably won't see these high percentages as it will be harder to see huge jumps as the portfolio grows but it's incredibly pleasing on the eyes as I get to look at it now.