30 Year Investment Plan

lalasushi said: "Current Plan. Take current 5,000 shares in Bank of America and invest the dividend in one high yield dividend company every year. I plan to do this for 19 years thus aquiring 20 high yielding dividend stocks which i will automatically reinvest the dividends in themselves. This will consist of 5-10% of my additional investment portfolio above and beyond my Bank of America dividends. 7%-17% inflation protection 25%-45% real estate investment 100,000 or 10% cash minimum Comments, criticisms? Id love to hear all you guys have to say"

AlfredSokol said: "Looks great to me. The 20 dividend paying stocks will come in really handy."

lalasushi said: "This is the model my grandfather taught me. 20 Years ago, he bought 100 shares of Commercial Trust. Through splits, and dividend reinvestment, it is now 5,000 shares of Bank of America. Approx Worth: $200,000 Initial Investment: $800 The power of dividends is shown. The problem is people do not have foresight and merely see maximum holding periods of 5 years. I plan my investments on a 20 year horizion at minimum. 30 Year most commonly. Imagine what $10,000 a year will create using my model. "The best holding period, is forever" -Warren Buffet"

AlfredSokol said: "There's no question about it. I love re-investing dividends. If you haven't already, read the book "The Richest Man in Babylon" and it definitely teaches the story of re-investment. I have 2 DRPs which I started putting $100 per month into in 2001. Together, they're worth over $14,000 and growing. Considering that's only $50 a week, you can see how enormous the account builds up. Almost anyone can get rich if they have time and discipline."

lalasushi said: "I will definately read that. Although my current backlog of financial books is about 4 feet high id love to hear any other book reccommendations you have. I love doing research and learning more about investing, its why i am where i am today :)"

mskern77 said: "Are you investing in the dogs of the dow (highest paying stocks in the Dow)? Or what companies are you using for this financial strategy?"

lalasushi said: "I look for undervalued high dividend yield companies, look for good trackrecords of dividend dispersal. Strength in Consistency. I dont plan on using any inflated growth stocks in my plan."

alhamid said: "reits may be the answer...they have to pay out 90% of their net income as dividends by law"

lalasushi said: "Reit's will be part of my allocation to real estate. My stock allocation is strictly for Tax-deferred accounts for dividend yielders and non-tax sheltered accounts for the rare growth stocks i pick up if i decide to. + I havent done nearly enough research on REITs yet to form a full decision on what particular sector in REITs i will invest in or what percent of my real estate allocation. +also note this is merely investment money, money considered gone in my mind once it enters my portfolio, i will not act similar to the shortsighted investors that plauge the US Markets. In 30 year windows, the risk on my planned investments falls to extraordinary levels. Also, if you guys would like to save my plan for your own uses please do so soon, i will be taking it off in a few days. I dont mind if you guys use my plan, but i dont want an overabundance of people to know of it, even though its a very rough draft."