A Frugal Family’s Journey
Another winter deal in the books! International Paper Co (IP) arranged a fresh 52-week low through the mid-day session. 32.during the afternoon session 50. We have been watching IP paper for awhile and saw the dip as an chance to add another great dividend paying company our family’s dividend stocks portfolio.
Although we understand the price concerns, we believe that International Paper Co (IP) management has laid down the necessary foundations for the company to have a successful 2016 and beyond. We believe the high 4.7% yield provides a sensible entry point. We’ve no problems sitting down back and collecting the juicy 4.7% yield even as we await a turnaround. IP is the world’s leading maker of containerboards used to make corrugated dark brown boxes for shipping goods. With E-commerce continuously expected to develop, sales in this category should continue steadily to see steady growth. 3rd-quarter revenue of .97 cents for 2015 defeat estimates of .92 cents. IP has a dividend produce of 4.7% and has been increased for the past 5 yrs.
1.97Bil that allows it to keep to pay its high dividend and still have cash left for stock buyouts and company investment. Sales down in Industrial packaging, computer printer paper, and consumer product packaging. Concerns over pricing are working along the paper and packaging sector. Recent Downgrade from Citi. “International Paper Company is a paper and packaging company with primary markets and manufacturing functions in North America, Europe, Latin America, Russia, Asia, Africa and the center East.
- Investing in foreign shares is one way to boost diversification of a portfolio
- Minor displayed by parents/guardian
- Is it in an area that gets less popular or more popular
- Select financing for different types of value-added properties
The Company functions in three sections: Industrial Packaging, Printing Papers and Consumer Packaging. Industrial Packaging segment’s products include linerboard, medium, whitetop, recycled linerboard, recycled medium and saturating kraft. Printing Papers segment products include uncoated documents, which engage in the carrying on business of producing papers for use in copiers, desktop and laser beam printers and pulp, which produces printing, writing and specialty papers, tissues products and filtration products. Consumer Packaging’s coated paperboard business produces covered paperboard for product packaging and commercial printing end uses. Its foodservice business produces mugs, lids, food plates and containers.
There’s also the fact of being able to stop working early in life, while you’re young enough to take pleasure from it still. Think about it-you can work when you wish, and take off when you wish. It may be short spells of retirement, followed by short working assignments. You can take a few months and travel the world, or search for stimulating and new experiences.
And you can choose the task you want, even doing the type of work you couldn’t do when you were tethered to your task to make a living. You’ll have to learn to live well below your means. That’s not impossible, but it is an adjustment. You’ll have to be a committed investor, particularly when the market isn’t behaving. Medical health insurance is a major concern. The Affordable Care Act has made health insurance more widely available, but it’s even more costly. You’ll have to budget medical health insurance premiums into your FIRE strategy. Long-term care insurance. This is a growing concern throughout the populace, but once you reach FIRE position, you’re self-insured for long-term treatment largely.
You can buy a long-term care insurance policy, but they have restrictions plus they are more expensive as you get older progressively. Like anyone in retirement, the biggest concern is the to outlive your cash. As Rob discussed in the podcast, to earn more than 4% on your investments will require a substantial portion of your profile being invested in stocks. This opens the concern in regards to a serious decrease in the stock market. If you have 70% of your money in shares, and the marketplace requires a 30% drop, your total collection will fall by more than 20%. You’ll have to be prepared to hold on through the drop.
History shows the marketplace will bounce back again, but waiting out the decrease can be considered a nail-biting event. It’s something you need to be emotionally and financially ready for. One way to cope with this may be with an emergency fund large enough to provide living expenses for at least one year. Throughout a serious market drop, you could live out of your emergency fund so you don’t further erode your portfolio by making withdrawals.
Still another option is to truly have a career you can fall back again on, only if temporarily. You’ll have to choose what your backup plan will be to live at peacefulness with a keep market. It doesn’t mean your FIRE life should come to an end. But it may require making some adjustments to cope with the fear factor.