I’m 20 years old, lost my dad about half a year ago and I am going to receive 350k inheritance soon. Would it be smart to grow my money in stocks while in college and then invest in rental properties afterwards, or should I go for real estate investing first?
I would advise the counsel of a seasoned financial pro. It may seem expensive, but as the old saying goes - "you get what you pay for" "Expert solutions require Expert providers" - my mantra
Agreed, investing with the help of an advisor did the trick for me in barely 5 years. Retired with couple millions before 55. I worked hard everyday for 32 years and made over 120k annually, enough to get me fully invested thankfully.
bravo! I've worked in real estate for over 25 years and have neglected a major stock portfolio, however I need a different plan now.. mind if I look up the professional guiding you please?
I've stuck with the popular ‘’Karen Lynne Chess” since the pandemic, and to date, her performance has been consistently impressive. You'd most likely find her basic info on the internet, simply do your research.
glad to have stumbled upon this, curiously inputted Karen Lynne Chess on the web, easily spotted her consulting page and was able to schedule a call session. Ive seen commentary about advisers but not this phenomenal
The appeal of dividends is that you don't have to worry about selling stock and adjusting your withdraw rate during market downturns. The simple fact is that there's stability and a sense of safety that accompanies dividend payments. That's not to mention that dividends alone have accounted for 40% of stock market returns since 1930. People like to discredit the "dividend investing" strategy in favor of index fund investing that maximizes total return over the course of many decades. But it can be hard to stay invested during a recession with this method when your total market fund is down 30% for years and years. Not only are dividend stocks less volatile than the market, but they give that consistent payout that makes it easy to ignore the constant ups and downs of the market.
After living off dividends for 10 years and watching my portfolio grow a little slower than the market as a whole on price I'd say my strategy has been vindicated. My largest account is up 53% on price since 2011. I have a Roth account with dividends reinvested while my other accounts produce income. So even after taking hundreds of thousands in income over the last decade my portfolios continue to grow. Maybe when I get very old I'll abandon the "no percent" rule and start selling shares. I'm in no hurry, though.
Saying a company worth 10 mil pays a million in dividends is now worth 9 million isn't exactly the way to look at it either. If a company is giving away a million every quarter...and NOT earning that back...PLUS some before the next payout then that company isn't going to be paying out any more dividends. You invest in a company that has a track record of paying a million out in dividends. THEN they earn 2-3 MORE million. And then pay another million....quarter after quarter. Then eventually what happens? They will INCREASE the dividend.
I don’t think of dividend investing as an all or nothing approach. For my equity portion maybe 60/40 total market and value stock etf. Increases dividend payout for total portfolio. Target covering essential expenses.
A dividend growth portfolio need not be a 60/40 portfolio. Mine has a small cash/CD allocation worth a few years' expenses (about 10% of my portfolio) and the rest is a roster of boring stocks that have grown their dividends for decades. My portfolio yield is 2.3%. Bonds are a drag on my portfolio. I haven't owned any. My portfolio's dividends cover expenses and have gone up by 10% even in this bear market. If dividends are drastically slashed (as in 2009), I have my cash bucket to dip into As simple as that. The truth about living off dividends in retirement is fairly straightforward.
Dividends combined with capital growth is the ticket. Couple this with a few years of cash or equivalent for down markets and you are set. There are many etf’s that can make this strategy successful. It’s not about what you make, rather it is about what you spend.
I was thinking, if I buy stock that pays 4% dividend, the share price drops, I will effectively be buying more shares with the dividend reinvestment because the dividend as a % will probably increase, and the stock will be cheaper. Doesn't that make sense?
@Rob Berger - I need cash for living expenses in retirement. I am already having to pay taxes on the dividends so why have to go to core cash. When dividends are paid, it’s the stock usually at their highest price. I’m not living off dividends, it will just keep my withdrawals down. I think it would help me with controlling my annual taxes.
I do have a question on your point about dividends. I understand the price of a stock goes down equal to the dividend as it should as the total value of a company would go down by that exact about on the day the dividend is paid. However, as dividends are in general derived from earnings then it would follow that the reduction in value is actually earned money during the prior quarter or quarters and that earned value would be replaced after each dividend payout as long and earnings stay the same or increase. I do realize earning can go up or down and this will of course affect the overall value of any company and possible future dividends. I am also only talking about companies that actually make money and more than enough to cover the dividend. It seems the quality of the dividend is the important issue to remember and evaluate when one owns this type of asset. My point is I don't think dividends are a slight of hand for the above reasons. Thanks, Gary
Assume I own 100% of a company that has $1M cash and nothing else. I could pay myself a dividend of 1M. If I did this, I would have 1M cash and my company would now be worth zero. Or I could sell the stock of my company for 1M (the value of the cash), and the new owner of my company would have a bank account with 1M, and I would have the 1M I sold for the stock. Whether a company pays a dividend or the stock holder sells stock, the result is exactly the same (the form is obviously different).
I assume a company is paying dividends out of earnings. As long as a company is paying out dividends over time that are less than earnings, my investment will increase in value and I will enjoy my dividends. But ur are correct that my investment is worth less than it would otherwise be if I make withdrawals from it.
Save a particular amount for investing if you want to receive dividends, personally I have my interest set on key sectors based on performance and projected growth and that is where I put all my money. I actually bought my third house from my portfolio ranging frim tech to crypto among other assets . I'm also working on an investment plan that includes going aggressive on some stocks.
My wife and I live off our dividend growth portfolio. We have a diversified portfolio of approximately 40 stocks; all durable businesses with a long track record of sound financial management and commitment to shareholder dividends. I have managed the portfolio since 2001. In my experience it’s far safer and less stressful than managing any form of total return. Nothing worse than seeing my total return friends managing through bear markets.
Love it, that’s why my husbands and I plan is to accumulate enough and invest in in dividend etf/ and or some stocks and completely live off dividend and not worry about market swings. I’m happy to see someone else is realizing it.😀
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
Of course the downside of "living off your dividends" is the amount of money you must put into those dividend paying stocks to get any kind of decent income. Let's say, for example, you need an income of $75,000 in retirement. That would require a $3,000,000 investment in a dividend portfolio that pays 2.5%. While some of us may be able to do that, the vast majority of Americans don't have anywhere near that sum of money to create that income. And you wouldn't want to invest 100% of your portfolio into those dividend stocks as you could be in for a wild ride so you would need far more than the $3,000,000 to ensure a safety net which could be invested more conservatively.
I’m 20 years old, lost my dad about half a year ago and I am going to receive 350k inheritance soon. Would it be smart to grow my money in stocks while in college and then invest in rental properties afterwards, or should I go for real estate investing first?
I would advise the counsel of a seasoned financial pro. It may seem expensive, but as the old saying goes - "you get what you pay for" "Expert solutions require Expert providers" - my mantra
Agreed, investing with the help of an advisor did the trick for me in barely 5 years. Retired with couple millions before 55. I worked hard everyday for 32 years and made over 120k annually, enough to get me fully invested thankfully.
bravo! I've worked in real estate for over 25 years and have neglected a major stock portfolio, however I need a different plan now.. mind if I look up the professional guiding you please?
I've stuck with the popular ‘’Karen Lynne Chess” since the pandemic, and to date, her performance has been consistently impressive. You'd most likely find her basic info on the internet, simply do your research.
glad to have stumbled upon this, curiously inputted Karen Lynne Chess on the web, easily spotted her consulting page and was able to schedule a call session. Ive seen commentary about advisers but not this phenomenal
The appeal of dividends is that you don't have to worry about selling stock and adjusting your withdraw rate during market downturns. The simple fact is that there's stability and a sense of safety that accompanies dividend payments. That's not to mention that dividends alone have accounted for 40% of stock market returns since 1930.
People like to discredit the "dividend investing" strategy in favor of index fund investing that maximizes total return over the course of many decades. But it can be hard to stay invested during a recession with this method when your total market fund is down 30% for years and years. Not only are dividend stocks less volatile than the market, but they give that consistent payout that makes it easy to ignore the constant ups and downs of the market.
After living off dividends for 10 years and watching my portfolio grow a little slower than the market as a whole on price I'd say my strategy has been vindicated. My largest account is up 53% on price since 2011. I have a Roth account with dividends reinvested while my other accounts produce income. So even after taking hundreds of thousands in income over the last decade my portfolios continue to grow. Maybe when I get very old I'll abandon the "no percent" rule and start selling shares. I'm in no hurry, though.
Saying a company worth 10 mil pays a million in dividends is now worth 9 million isn't exactly the way to look at it either. If a company is giving away a million every quarter...and NOT earning that back...PLUS some before the next payout then that company isn't going to be paying out any more dividends. You invest in a company that has a track record of paying a million out in dividends. THEN they earn 2-3 MORE million. And then pay another million....quarter after quarter. Then eventually what happens? They will INCREASE the dividend.
I don’t think of dividend investing as an all or nothing approach. For my equity portion maybe 60/40 total market and value stock etf. Increases dividend payout for total portfolio. Target covering essential expenses.
A dividend growth portfolio need not be a 60/40 portfolio. Mine has a small cash/CD allocation worth a few years' expenses (about 10% of my portfolio) and the rest is a roster of boring stocks that have grown their dividends for decades. My portfolio yield is 2.3%. Bonds are a drag on my portfolio. I haven't owned any. My portfolio's dividends cover expenses and have gone up by 10% even in this bear market. If dividends are drastically slashed (as in 2009), I have my cash bucket to dip into As simple as that. The truth about living off dividends in retirement is fairly straightforward.
Make 100k per year in qualified dividends pay 0 in federal tax. Selling 2% of your stock each year triggers capital gains tax.
Depending on your income your capital gains tax could be zero.
…or instead of dividends…swap in distributions from MLPs. There’s a tax advantage there as well.
Dividends combined with capital growth is the ticket. Couple this with a few years of cash or equivalent for down markets and you are set. There are many etf’s that can make this strategy successful.
It’s not about what you make, rather it is about what you spend.
Yes, having that 3 yrs in cash gives your growth stocks time to recover so you don't have to sell stocks when they are down
I just stick to SCHD, VIG is another good option.
I was thinking, if I buy stock that pays 4% dividend, the share price drops, I will effectively be buying more shares with the dividend reinvestment because the dividend as a % will probably increase, and the stock will be cheaper. Doesn't that make sense?
@Rob Berger - I need cash for living expenses in retirement. I am already having to pay taxes on the dividends so why have to go to core cash. When dividends are paid, it’s the stock usually at their highest price. I’m not living off dividends, it will just keep my withdrawals down. I think it would help me with controlling my annual taxes.
I do have a question on your point about dividends. I understand the price of a stock goes down equal to the dividend as it should as the total value of a company would go down by that exact about on the day the dividend is paid. However, as dividends are in general derived from earnings then it would follow that the reduction in value is actually earned money during the prior quarter or quarters and that earned value would be replaced after each dividend payout as long and earnings stay the same or increase. I do realize earning can go up or down and this will of course affect the overall value of any company and possible future dividends. I am also only talking about companies that actually make money and more than enough to cover the dividend. It seems the quality of the dividend is the important issue to remember and evaluate when one owns this type of asset. My point is I don't think dividends are a slight of hand for the above reasons. Thanks, Gary
Assume I own 100% of a company that has $1M cash and nothing else. I could pay myself a dividend of 1M. If I did this, I would have 1M cash and my company would now be worth zero. Or I could sell the stock of my company for 1M (the value of the cash), and the new owner of my company would have a bank account with 1M, and I would have the 1M I sold for the stock. Whether a company pays a dividend or the stock holder sells stock, the result is exactly the same (the form is obviously different).
I assume a company is paying dividends out of earnings. As long as a company is paying out dividends over time that are less than earnings, my investment will increase in value and I will enjoy my dividends. But ur are correct that my investment is worth less than it would otherwise be if I make withdrawals from it.
Save a particular amount for investing if you want to receive dividends, personally I have my interest set on key sectors based on performance and projected growth and that is where I put all my money. I actually bought my third house from my portfolio ranging frim tech to crypto among other assets . I'm also working on an investment plan that includes going aggressive on some stocks.
My wife and I live off our dividend growth portfolio. We have a diversified portfolio of approximately 40 stocks; all durable businesses with a long track record of sound financial management and commitment to shareholder dividends. I have managed the portfolio since 2001. In my experience it’s far safer and less stressful than managing any form of total return. Nothing worse than seeing my total return friends managing through bear markets.
Love it, that’s why my husbands and I plan is to accumulate enough and invest in in dividend etf/ and or some stocks and completely live off dividend and not worry about market swings. I’m happy to see someone else is realizing it.😀
Have you looked into dividend etfs or funds? wouldn't that make it easier for you to manage?
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
What about SCHD Schawb dividend fund?
A great fund for both appreciation and yield.
thats an excellent fund very popular...
Ftse 100 index
Of course the downside of "living off your dividends" is the amount of money you must put into those dividend paying stocks to get any kind of decent income. Let's say, for example, you need an income of $75,000 in retirement. That would require a $3,000,000 investment in a dividend portfolio that pays 2.5%. While some of us may be able to do that, the vast majority of Americans don't have anywhere near that sum of money to create that income. And you wouldn't want to invest 100% of your portfolio into those dividend stocks as you could be in for a wild ride so you would need far more than the $3,000,000 to ensure a safety net which could be invested more conservatively.
Very incoherent. Not your best video here.