Friday, September 30, 2016

Sell: Everything


Time to make a bold move in an uncertain world.

On Friday, September 30, 2016, I sold all the stocks in my taxable accounts. Both Loyal3 and Scottrade.

Total cash after sell: 79,363.62

Buy: 6.5 acres of farmland and timber for $35,000 paid in cash.

Buy: A nice country home factory built for $50,000 (30 year loan for 1.8% interest)

Rationale:

  • Markets are at all time high. And yes Donald Trump is right, we are in a big bubble. 22 countries in negative interest rates, everyone freaking out about .25% interest rate hike, Japan now enforcing bond yield curve not fiscal monetary policies, and the feds hinting that they would buy equities if everything went wrong? Yes, we're in a giant bubble.
  • Many dividend stocks are increasing or paying more than their fcf is growing. I think we might be entering a dividend bubble soon. The hunt for yield is on.
  • This is not an investment property. This is my retirement home and with a 1.8% over 30 year loan for 50k I might as well start my dream of living off the land. I could have bought land instead of timber but the trees will keep the home cool in the summertime.
  • I still have 45K on the sideline. Don't count me out yet. I'm still investing for the long haul but sometimes it's best to take some chips off the table and pursue your dreams. I mean what's the point of investing if you can't enjoy it, amirite?

Long: Whatever is left in my roth.

10 comments:

  1. It seems like everyone is selling off. Good luck and congratulation with your farm!

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    1. hey d4s, this was more of a stepping stone in my life more than fear of the market. I've been grinding for a long time and time just seems to past me by. Good luck with your investment buddy. Don't worry I have a feeling if trump wins they'll crash the money on him. If hillary wins they'll crash in 5-6 months

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  2. That's a really bold move! Looks like a great piece of land for a steal -- I wish you all the best in your new adventure!

    Take care!
    FerdiS, DivGro

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    1. Don't worry Ferdis, I'll be back. The dividends are too tempting for me to let go. Call it a pause in striving for early retirement and a shift to appreciate what I have today. Give me a 10-20% crash and I'm back in the game baby

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  3. Wow! That's a big move. Good for you!

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    1. hey ND chic, nature is calling me =) We only have one life and one chance at happiness. The concrete jungle and the backstabbers are starting to get to be =)

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  4. As commented above, I am reading more and more major sales or total liquidation posts among our fellow dividend bloggers. It's interesting how tides change over time. When I first started looking at dividend blogs almost every post was a 'buy' post in solid long term dividend payers. Fast forward, and more and more have jumped on board the options train to juice monthly income. Fast forward again and it looks like many are jumping ship on their dividend stocks. It's all good. I have commented many times before that personal finance is personal and one must always do what they feel is best for themselves, makes them feel comfortable and allows them to sleep well at night.

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  5. Thanks for sharing! The land looks awesome. Part of me would just love to buy some land like this and build a house off the grid with solar panels and winder generators...maybe natural gas for backup. For now I'm just holding and buying more. I won't need the money for 25+ years so hopefully the economy won't completely collapse by then!

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  6. My wife wants to buy land so bad she can taste it. We're hoping in the next five years to have the opportunity to buy some land and leave the grind of work and the city. In the meantime we are saving up cash so that if things do drop that we have the opportunity to buy things on the cheap.

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  7. That land will be 20% cheaper when your expected crash happens. And I wouldn't be taking financial advice from Donald Trump if I were you. For all we know, he's saddled with billions in debt.

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