Universal Basic Investing?

 I came across a tweet yesterday from one Doug Boneparth suggesting that rather than do Universal Basic Income (you know, the $1,000 a month for everyone no questions asked) the government take that and invest it into the S&P 500 in everyone's name with the caveat that they can't touch it for 15 years.

Leftist anti-investing Twitter did not take too kindly to this suggestion.  To be fair, it doesn't really work as a response to the more immediate and pressing concerns (or maybe it does, I'll get to that a bit later.)  In the long term, though, this (much like ForeverDonor, a site that we still need to figure out how to revive) could be a real game changer.

One of the biggest criticisms in regards to investing is that the gains in the market are only felt by a few people.  Even if you are a small time investor (like I am) you don't see the sort of gains that those at the top see.  This gets everybody in so that the rising tide would lift all boats in a much more noticeable way. 

As far as combating wealth/income inequality, this would go a long way towards achieving the goal.  It would also drastically speed up the timetable for eliminating poverty.

There are some things that require clarification.  I'm guessing that the money would go into some kind of index fund or ETF (like Vanguard's VOO for example).  I guess the money could be allocated to all of the individual companies, but that seems like it would require a lot more work and effort.  On the other hand, going the latter route would make for more dividend payout dates.

Yeah, oddly enough, neither side brought up the passive income that this would generate.  Now, VOO does pay a quarterly dividend, and $1,000 a month into that would generate quite a bit of momentum.  It would create the rising income floor that UBI advocates always say that they want to create.  What's really cool, though, is that the government expense doesn't budge.  Even if it stays at $1,000 a month, the person's dividend income would still go up due to more shares being possessed.  Add in dividend increases and possible dividend reinvestment and good night, Irene.

I'm not sure whether DRIP would be the way to go here.  On the one hand, it compounds the compounding effect, on the other hand, people do need the cash now.  What would be really cool was if you had the option to do both and ration it out as you needed it. 50/50 would be the most obvious way to go, but different people have different financial needs, so maybe somebody takes those dividends and puts it towards another expense, who knows?

As with any massive government expenditure, one must point out that the government is beyond broke.  Seriously, that is one of the worst balance sheets in the history of time.  One can't be faulted for raising the legitimate question of how this gets paid for. On the other hand, the government seems happy to pump large quantities of money into the market already, so we might as well see some tangible benefit to that.  It beats hearing about multi-trillion dollar stimulus bills that seem to wear off two days later.

Here's another cool thing to take into account.  In order to become a millionaire in 15 years, you need to invest $2,850 a month into the market.  This does a third of the work for you. More millionaires means more funding for the things and less reliance on government.  Again, it generates tax revenue whilst decreasing financial obligations.  It's win/win.

Better yet, when something big does come up, people'll be better equipped to deal with it.  This would set us up to get ahead of things as opposed to being on our back foot all the time.

People scoffed at the idea, but I don't think it should be so quickly dismissed.  There's a lot to like here.  I might actually have to go and amend my budget surplus amendment to incorporate this into the equation because it's winning me over the more I think about it.

Let's Get It Right' - EX3 Network 2

 

Robinhood Review

 I've been using Robinhood for a little while now and I figured it was as good a time as any to weigh in and give my thoughts on it.  There are upsides and downsides, so we'll look at both to see if this is something that you should consider looking into.  

Let's get the bad out of the way, and that's the layout.  Other reviews have raved about it.  The only thing I can think is that it was designed to be used on a phone and I'm using a laptop.  I'm getting used to it, but I'm still not crazy about it.  Personally, I think E-Trade's layout is better.  It's smoother, easier to navigate, and it gives you more information.

On a similar note, the information you want to see is crammed into these little sidebars that the screen cuts off.  Even your portfolio itself is relegated to such a section.  It's hard to imagine trying to monitor and manage a larger account in that little box. 

For the dividend investor, Robinhood doesn't give you an estimated projected forward income the way E-Trade does.  I guess you can do that yourself, but having it is still preferable.  The site will give you a couple of days notice before you get your dividend, which does makes for a nice surprise when it pops up, but you'd still be operating on the fly.

Don't worry, there are upsides.  The first is the free stock.  Now, I've only gotten the one share from using a referral link, but there is potential to get more later on down the line.  Even so, the one share was a good way to get the ball rolling.  Sure, the stock wasn't impressive, but I was able to sell it and get something that better suited my portfolio.  It does make you wait three days to do that for some reason.  It bugged me when I first started, but it's a moot point now.  Still thought it was worth mentioning for those who are looking to do that or to "stock bank".

The other major pro is the partial share buys.  I am loving this.  Being able to put a couple of dollars into companies that are more expensive is huge.  Not only can I initiate positions that I otherwise wouldn't be able to afford, but I can make moves more frequently and get that snowball rolling just a little bit quicker.

So, is Robinhood worth using?  That depends.  I wouldn't suggest using it as a primary account, but if you're looking to get started, this allows you to get your feet wet and learn the ropes before setting yourself up with another brokerage. If your current broker doesn't allow partial share buys, than this also works as a good supplemental broker.  

Click here to open a Robinhood account

Click here to open an E-Trade account 

September 2020 Dividend Income: En Vanguard

 Debates may be dumpster fires, but dividends are money, both literally and figuratively.  Yes, with September coming to a close, it's time to log the income that dividends brought in.  Where most investing bloggers shine in the quarter enders, mine are usually the weakest.  It's especially jarring after the mid-quarter month.  Nevertheless, we move forward and progress where we can when we can.  In that spirit, let's get on to the numbers.

Kroger (KR): $1.12  Up $0.13 from last quarter due to DRIP and, I believe a dividend increase.

SJW Group (SJW): $0.32  Same as last quarter

Johnson and Johnson (JNJ): $0.03  It didn't take long for the RobinHood buys to start making an impact.  I'm not complaining, though.

AGNC: $0.14  Same as last quarter

Emerson (EMR): $0.04

CenturyLink (CTL): $0.28  Same as last quarter

Flowers Foods (FLO): $1.05 Up a penny from last quarter

Walgreen's Boots Alliance (WBA): $0.47  Up a penny

3M (MMM): $0.04

Realty Income (O): $0.99  Up a penny from last quarter and the same as last month

Wendy's (WEN): $0.36  Same as last quarter

McDonald's (MCD): 0.03  Seriously, those Robinhood buys were a game changer.  Not only do I have two rival fast food companies paying me dividends in the same month, but they pay on the same day.

VF Corp (VFC): $0.49  Same as last quarter

Vanguard High Dividend Yield ETF (VYM): $0.07

That brings the grand total to $5.43, up $0.37 from last quarter, but down $1.84 from last year.

Meanwhile, over in the 401K, two funds paid. The Baird Aggregate Bond Fund paid $0.77 and the DFA Small Cap Fund paid $0.43.  The total for that account clocks in at $1.20.

All in all, the grand total comes to $6.63.  This is up $0.31 from last quarter, but down $1.39 from last year.

Interest clocked in at $4.54

This was a pretty active month for me on the buying front, with moves made in both the E-Trade and RobinHood accounts.  Over with the primary broker, I averaged down via single share purchases of AT&T (T), VF  Corp (VFC), Omega Healthcare (OHI), Franklin Resources (BEN), and Walgreen's Boots Alliance (WBA.

Over in the RobinHood account, I focused my attention on Vanguard ETF's.  These are similar to mutual funds, in that they are comprised of a multitude of companies, but they are a bit easier to deal with.  I made partial share micro-buys into the Vanguard Total Market Index (VTI), the Vanguard High Dividend Yield ETF (VYM) which has already paid me a dividend as you saw above, the Vanguard S&P 500 Index (VOO), and a Vanguard REIT ETF (VNQ).  I also made some $1-2 buys into the already established positions just to give it a nice boost.  I may continue doing that going forward.  It won't be a game changer, but it will make for steady progress.  Considering how many of those pay in the quarter ender, it also gives this block a chance of catching up in the future.

Despite all the action, I haven't gotten around to updating the portfolio post yet.  Could be done this weekend or I could just wait until the end of October.  I'll have to see how things play out.

All in all, this month was a mixed bag.  It was odd in that the quarterly numbers were all steady.  Most stayed even, but there were some that went up; despite this the YoY numbers were down.  I guess it was only a matter of time before those cuts caught up to me. The QoQ growth kind of tricks you, though.   Hopefully, with the buys, I'll be able to recoup those losses and get the numbers going back in the right direction.

We're in the home stretch of 2020.  It's been a gauntlet, to be sure, but you just have to put your head down and plow through.

Click here to open an E-Trade account

Click here to open a RobinHood account

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'Let's Get It Right' - EX3 Network 1

 

What Should Bruce Wayne Be Doing With His Money?

 Some time ago, I saw a tweet that posited that if Bruce Wayne merely funded a universal basic income, he could eliminate crime in Gotham City in one foul swoop.  It's the latest instance in the effort to paint his efforts as the Dark Knight as superfluous and even hedonistic.  

Now, to be fair, as far as UBI is concerned, there is some truth to it.  There would be a lot fewer "Joe Chill" style criminals roaming the streets and preying on the citizens.  The thing is that a vast majority of the crime in the city ISN'T poverty driven.  The organized crime rings are very well funded and even the rogues gallery aren't strapped for cash either.  Though many of them are depicted robbing places, they're not poor.  Penguin is very well to do, Victor Fries was a scientist, Two-Face was a district attorney.  And I'm sorry, but giving the Joker $1,000 a month seems like a terrible idea, but that's just me.

Be that as it may, there may be ways for Bruce to put his vast resources to better use.  In order to determine whether or not that's the case, we have to look at what he's currently doing with his money.

First and foremost, there is his business, Wayne Enterprises.  While it may not be the economic backbone that LuthorCorp is said to be for Metropolis and/or Smallville, it is a power player, creating a lot of jobs in Gotham.  These aren't dead-end "McJobs" either, but well paying career type positions.  This is a good thing on several fronts.

Bruce also does quite a bit of charity.  He doesn't "horde" his wealth, rather tries to channel it to help.  He has the Wayne Foundation, but is also frequently shown attending events to raise money for various causes.  Now, a cynical reader might just say that this is part of him playing a character so as not to draw suspicion.  The thing is that Bruce would still use this as a means of addressing issues and solving problems.  Even in his darker portrayals, that was still a main motivator for him.  

The third thing, and it's almost galling that so many gloss over this, but he also FUNDS THE FREAKING JUSTICE LEAGUE!!! In every iteration it's Bruce who provides the resources to let the League do what it does best and protect Earth.  Taxes can be effectively allocated and improve things on some levels, but there's no way that Bruce paying more would allow Earth to better protect itself from the likes of Darkseid, Brainiac, or the White Martians.

So, while we've established that the accusation that Bruce Wayne isn't doing enough is laughable.  There could still be some room for improvement.  I mean, Goku didn't just sit back and rest on his laurels after hitting Super Saiyan, right?

One thing that comes to mind is a new asylum in Gotham.  Arkham is an iconic piece of the Batman lore, but it kind of....sucks?  It's great for atmosphere, but the security isn't very good, it's run down, and the treatment success rate aspires to shoddy.  Having the Joker be beyond therapy is one thing but you'd think Harvey Dent, Edward Nygma, or Jervis Tetch would be able to see some sort or sign of rehabilitation at some point.

Arkham itself is most likely a historical landmark so having it renovated would mean a lot of red tape that Bruce would likely not want to bother with.  As such, a new asylum would be the best way to go.  He can put in top of the line security measures to keep the more dangerous inmates in, whilst also hiring better therapists to treat those inside.

Another thing Bruce can do is ForeverDonor.  Now, the Wallet Squirrel guys don't exist in the DCU and the site (unfortunately) doesn't exist in ours either (for now?)  Still, Bruce knows the power of passive, compounding income.  It's not that much of a stretch for him to come up with the idea himself and use his company and personal resources to build a site that acts in the same capacity.

One advantage that Bruce has is that he regularly rubs shoulders with the high society types.  It wouldn't be that hard for him to coax some of his wealthy compatriots to set up accounts to get the snowball rolling.  Heck, even Lex Luthor might set up an account to help usher in that bright new age for humanity that he's always going on about.  The fact that it's all automatic means that it's something that Bruce wouldn't have to divert any attention towards.  Just set up the site and his own account, move some money there and then the problems start to solve themselves.

Beyond that, maybe zero in on crowdfunding?  It would be a great way to get that "trickle up" effect going, paying off people's student loans or helping people with medical bills.  This also generates tax revenue to boot.  He might not be able to fund all of the projects the way that Tony Stark did for that group of MIT students in "Civil War", but it would still help people and create a potential ripple effect as time goes on.

So, there you go.  It turns out that Bruce being a primary defender of the planet, does use his resources well.  There's room for improvement, but he doesn't deserve the bashing that he seems to be getting lately.  If anything, our billionaires need to try to be more like him and jump the bars that he's set.

'Let's Get It Right' - Flavor of the Week