Saturday, October 15, 2011
Fully invested in my IRA account
The rollover to my IRA account has completed and now I can purchase my favorite stocks for dividend income purpose. I just purchased 32 stocks as my entire portfolio and here is the core 12 stocks: ABT, AGG, COP, CVX, ED, IEF, JNJ, KO, MCD, MO, MSFT, and NLY. The entire portfolio will generate combined returns of about 4.5% annually and all dividends will be reinvested. Also, I will write some call options to generate extra income from stocks such as MSFT. One good thing about MSFT is that it has weekly options so I can keep writing out-of-money (OTM) calls every week if it falls in the right price range. If MSFT drops below my purchase price, I just sit there and collect my 3% dividend annually.