Tuesday, November 6, 2012
Election Night and the Dividend Investing Portfolio
Tonight is the night of the 2012 election. It is important push politics aside and focus on things we can control, like our portfolios. Dividend Mantra just posted Ignore the Noise for those who may have difficulty in doing this.
Regardless of who wins, there are 3 forces that will minimize the growth of the dividend investing portfolio until early 2013. They are as follows:
1)Free capital will be used to develop my newest property. I must put family first and we need a decent roof over our heads, as this will not be a rental investment.
2)My goal of paying off my student loan (only debt that is non-real-estate) by March of 2013 is going to be very difficult and I would really like to make that happen.
3)The fiscal cliff. There may be troubling times ahead for our economy if politicians let us fall over the fiscal cliff. If new legislation does not take place, taxpayers will see an increase of 2-5k increase in taxes next year. The country will also face 600 billion dollar combination of tax increases and harsh spending cuts.
The future is bright for the dividend investing portfolio. The fiscal cliff is the only reason mentioned that will have an effect on Mr. Market. And out of it I think there will be excellent stock valuations for future purchases. The purchases, will be more frequent and larger in size, due to the fact that I will have plenty of free capital once my home is complete and my student loan is paid off.
Disclaimer: I am not a financial planner, advisor, or accountant. The financial actions mentioned were only suited for my own risk tolerance, strategy, and ideas. Copying another's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.