Monthly Investing Recaps: October 2014

At the start of each month I detail all the buy/sell activity here for each of my 3 individual stock portfolios: Loyal3, Roth IRA, and Taxable Brokerage accounts. It’s just one way I am chronicling my journey to financial independence here at Starting From Zero.

In addition to these 3 accounts, I also continued investing in my Thrift Savings Plan (TSP) again this month. Right now I’m contributing 4% of my base pay but may adjust this in the future. The majority of my investing will still be in my taxable and Roth accounts. The TSP is basically a 401k plan for federal employees including the military. It only offers index funds but does have probably the lowest expense ratios around, even lower than Vanguard. Right now I’m putting my contributions in the C Fund which mirrors the S&P 500 and the S Fund which is a small cap index fund. Since these deposits typically take a while to reach my account, I won’t be detailing those transactions here.

Loyal3 Account

Buys

.528 shares of McDonalds (MCD) @ $94.69 per share=$50 invested.

Quick Hits: Although I wasn’t able to buy MCD at its low mid-month, I added some more to this position at a decent valuation.

 

Roth IRA

No activity this month.

Quick Hits: Contribution limit maxed out until next year.

 

Taxable Brokerage

Buys

38 shares of Kinder Morgan (KMI) @ $38.92 per share=$1487.91 invested including commission.

Quick Hits: With KMI set up for projected 10% annual dividend growth over the next few years, I decided to double my position in the energy giant. Although I ended up raising my cost basis here, I still think KMI presents good value here when factoring in the upcoming consolidation of Kinder Morgan Partners (KMP) and Kinder Morgan Management (KMR) under KMI.

 

Full Disclosure: I am long all stocks mentioned. This post is not intended to be a buy or sell recommendation for any stock mentioned and is intended for educational/entertainment purposes only.

How was your October for investing? What do you think of my stock picks this month? Share with a comment below and thank you for reading!

7 comments

  1. How messy is Loyal3 at tax time? I’ve been hesitant to invest there because of the partial share purchases and dividend payouts that might make cost-basis and taxes a nightmare for me. Your experiences?

    1. Dividend Garden,

      Thanks for stopping by, I’ve enjoyed the hidden source of value series you’ve done on Seeking Alpha.

      I’ve only been using Loyal3 since January of this year so I haven’t had to deal with taxes yet. It shouldn’t be an issue since I will only have to deal with the dividend payouts which is easy to track on a 1099-DIV since I won’t be selling any shares incurring capital gains. I limit my purchases on Loyal3 to those that I only plan on holding for the long-term.

      For those that do sell, I imagine Loyal3 would act like other brokerages and give you a detailed summary of the shares you sold and their cost basis using the First In, First Out (FIFO) method, I know my current brokerage does. It’d be time consuming entering all those separate transactions when doing your taxes but should still be fairly simple using software like TurboTax.

      Best regards,
      SFZ

  2. Congrats on adding more to KMI…I think its a good buy even at these levels. There arent many companies that give you so much visibility and a roadmap to how the dividends going to increase over a 5 year period. I am long KMI as well.

    best wishes
    R2R

    1. Thanks R2R. The company’s transparency and willingness to project dividend growth like they have is why KMI remains near the top of my buy list right now. I know they don’t have a long dividend growth history since going public again in 2011 but I’m pretty sure they’ve always met or exceeded their dividend growth estimates during that time.

      Thanks for stopping by.
      Best wishes,
      SFZ

    1. Yeah MCD is starting to rise in price here lately. I’ll try to get some more shares before it goes up too much. I haven’t looked at either TWX or VIAB before, I’ll have to do some research on them.

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