Super saver

So I got an email from my bank, HSBC, regarding an interest rate adjustment.  Wasn't surprised by this but I did enjoy the results of a recent survery that they have done.  Here it is:

• Active Savers, a group of people characterized by their dedication to saving, entered the recession better prepared than others because of their savings lifestyle. They have not had to take drastic measures to adapt to uncertain financial times and are less likely to have had to cut back on spending, eating out, and making large purchases.
  
  
• For more than half (57 percent) of Active Savers, learning to save started at a young age. Putting money away is a value their parents instilled in them (73 percent).
  
  
• Savings comes first for nearly half (46 percent) of Active Savers. They’re willing to make sacrifices in order to be able to put money away.
  
  
• Overall, a majority of the population has not allowed the economy to hamper their savings plans—81 percent have been able to put the same amount away, if not more.
  

Some very profound information right there...I'd like to thank my parents for teaching me the value of money at an early age.  I had no allowance so I had to make the most of what I had!

On a side note, I've sold my positions on ISRG and NOV.  I still think those companies rock but my initial positions (which I did not initiate any new thirds on its way down) are down more than 50%.  This will take at least a 100% gain to get my money back anytime soon so I've decided to end my commitment and take advantage of the tax break!   

So with this extra cash on hand, I've decided to gamble a bit and bought some shares in MGM Mirage (NYSE: MGM).  I think the gambling industry (i.e. Las Vegas) has been hit really hard by this recession, but will eventually springboard back.  Hopefully, I'll come out with some nice gains in the process.  Again, my position in MGM is less than 1% of my total portfolio value so please treat it as I do.  I wouldn't risk my entire life savings on it since there still be more downside to that industry.

POWER UP!

So on Friday, I decided I wanted a dividend-heavy, large cap, preferrably wide-moat stock  and couldn't decide between General Electric (NYSE: GE), Microsoft (NASDAQ: MSFT), Philip Morris International (NYSE: PM) or INTC (NASDAQ: INTC).   After much debate, number comparisons, and a lot of hair pulling, I decided to get none of them!  haha.

Instead, I purchased an international ETF that I found on SeekingAlpha called Powershares International Dividend Achievers (NYSEArca: PID).  I'm not going to get into the ratios and what not on this ETF, but a few interesting things attracted me to the ETF besides it's holdings portfolio:

• PID has a higher YTD market return than most of the dividend ETFs I analyzed.  
  
• PID also has an above-average yield of 6.23%.  

Of course, this isn't as amazing as the dividend-heavy ETF, Powershares Financial Preferred (NYSEArca: PGF), which boasts a hefty 15.88% yield.  But, I'm not the type to put all of my eggs in one basket and I've been on a PGF shopping spree in both my Roth IRA and investment accounts.  Although I do believe that the Financial sector has the possibility of making the most gains in the next 3 years, but I think I'll sleep better at night knowing that it isn't making up 30% of my investment portfolio.

*Tip: When investing long-term (3-5 years) for your Roth IRA, it's a good idea to focus on dividend-heavy ETFs or large cap stocks with high yield percentages (preferably with wide-moats).  This will be advantageous to you since the dividends are paid out tax free, allowing you to reinvest in the stock or use for other stock purchases and won't be deducted in the future when you withdraw from the fund.