Stock Purchase: JNJ

Purchased Johnson & Johnson (Google: JNJ) today. Here are the reasons:

• In business for 120 years
• Consistent earnings and revenue growth -- 73 consecutive years
  
• Consistent dividend increases -- 44 consecutive years
• Margin of safety around 35% based on 10% owner earnings growth for the next 10 years with an 11% discount rate
  

Stock Purchase: MMM

I purchased shares of 3M (Google Finance: MMM) today. Reasons that I purchased:

1. Two year stock buyback program of $7.0 billion approved in February
2. Over 60% of earnings are from outside the U.S. -- provides good international exposure
3. Historical earnings growth -- 20% annual growth in last 5 years
   
4. Dividend yield of 2.51%
5. Margin of safety around 40% based on 10% growth for next 10 years with an 11% discount rate
   

Financial Simplification

After changing jobs and moving, I found myself with way too many accounts....rollover IRAs, Roth IRAs, brick & mortar checking/savings accounts, online savings accounts, investment account, etc.

I realized that with so many accounts, I wasn't checking all of them regularly. More importantly, or more egregiously, I have been allowing money to sit idle. Having a cash position intentionally while you wait for a good stock to buy is one thing, but letting money take a vacation in the form of cash is not good.

So, I've decided to consolidate my financial accounts into as few as possible in an attempt to 1) simplify my financial life and 2) increase my performance/usage. While there are many good financial services companies out there, I've chosen the following two companies because they offer the features that I want while sacrificing the least.

1. Bank of America
1. Checking account -- On this account I've setup direct deposit on all paychecks, automatic payments for utilities and monthly bills, and
   
2. Visa
3. Rollover IRA -- Consolidated all 401ks and pensions from previous employers. This replaced accounts that had been at Fidelity or with employers
2. E*Trade
1. Taxable investment account -- Previously this account was with Scottrade, so I have had to sacrifice $7 trades for $12.95, but given the buy and hold nature of my investing, while it's unpalatable, I'm willing to accept it in the name of simplification.
2. Roth IRA accounts -- Previously these two accounts were with Scottrade as well.
3. Online savings accounts -- One account for Jessica and myself, and another account for our daughter. Previously these were at ING Direct, but the 5.05% is much more appealing than the 4.50%.
4. Coverdell Education Savings account -- This is a new account, but my goal is that as our daughter's savings account accumulates, and I find a good stock or mutual fund to invest in, I'll then move the money here to save for her education.

Below are the accounts that I still have and whether or not I'll keep them:

1. Discover -- I love the secure, single-use online number that Discover can create for online shopping. Plus the 1% cashback is nice. For now, I'll keep.
2. HSA Bank -- This is a Health Savings Account that I'll keep open.
3. Mortgage -- I'll keep where it's at. I rarely look at this account online, since the payment is made automatically from my checking account.
4. Auto loan-- Same as the mortgage, so I'll keep. This will end within 12 months, so not worth the effort.
   
5. School loan -- Same as the mortgage, so I'll keep.