Retirement Income Strategy: Dividend Stocks Explained and Pitfalls to Avoid
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- Опубліковано 13 чер 2024
- Dividends for retirement: This strategy can play a crucial role in funding retirement expenses and achieving long-term financial goals. Learn various approaches to dividend policy, including the implications of dividend payments on retirement portfolios and income streams. Additionally, I’m going to share with you the strategic considerations and financial implications associated with incorporating dividend-paying stocks into retirement portfolios, highlighting their potential to provide a reliable source of income during retirement years.
🏃🏻 Jump right in:
00:00 Introduction to Dividend Investing
00:54 Understanding Dividends and Corporate Strategies
02:21 Factors Influencing Dividend Payments
03:06 Importance of Yield and Dividend Strategies
04:54 Types of Dividend Stocks and Their Performance
06:16 Common Mistakes in Dividend Investing
08:41 Risk Management in Dividend Investing
11:31 Benefits of Increasing Income Strategies
14:52 Incorporating Dividend Stocks into Retirement Planning
18:47 Long-Term Accumulation Strategies with Dividend Reinvestment
23:38 Conclusion and Final Thoughts on Dividend Investing
#DividendInvesting #IncomePlanning #dividendpolicy
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Disclaimer:
This video discusses fixed-income investing and utilizes the 10-year U.S. treasury as a general representative fixed-income investment. Conclusions reached, opinions stated, and downside risks and potential returns presented should not be construed as applying to other types of bonds or fixed-income assets. Other types of fixed-income products carry different levels of risk and return potential and should be evaluated as an element of a diversified portfolio with your specific risk tolerance, investment objectives, and timeline in mind. Nothing in this video is investment advice, an investment recommendation, or an offer to buy or sell any security. Investing involves risk.
Dividends are dope. Personally, I sometimes use my dividends to buy other dividend and growth stocks for diversification instead of reinvesting in the same stock. To each their own methods though. The good thing is that you’re investing in the first place and that’s what’s important. Salute for the content!
I'm 48, sad to say I made terrible money decisions growing up which I'm presently paying for, been dedicating every waking hours towards my retirement and I'd really love to retire to Portugal with at least $3million by, the market up and down is not helping at all.
Strategic investment is critical. My ideal investment is a diverse combination of stocks, bonds, and ETFs. It provides an excellent long-term return and has performed admirably thus far, but I needed to diversify my portfolio at some point, so I approached a coach who devised a system that aligned with my targets; so far, I've made a whopping $580k, and scaling my portfolio to a million by the end of the year does not seem too far-fetched to me.
That’s pretty tight, thing is I hold good companies but profit has been stalling, I should be fixing to retire in 3years so I need all the assistance I can get, who is the person that guides you?
"Lisa Ann Moberly'' turned out to be better and smarter than all the coaches I ever worked with till date, I’ve never met anyone with as much conviction.
Thanks, I found it. I booked a call with her on her website, her résumé seems pretty tight.
Wow!! Im learning a lot from this video!! Thank you!
Thank you for this. Clear and easy to understand
No problem, Wendy! We're glad that it helped! Thanks for watching.
Thanks for your video
I just retired at 67 and will take my SS at 70.
My plan is to use 3 buckets
Bucket1 - Cash (money market funds) to cover my spending for the 3 years before SS starts.
I also have a part time retirement job to reduce the amount I need in bucket1
Bucket2 - Enough divident funds to have a dividend income to supplement my SS to handle my spending.
Bucket3 - The remainder in Growth Funds for long term growth.
I will adjust my buckets every quarter.
Examples
Up Market
If the growth funds increase more than the dividend funds I may move some money from growth to dividend.
Down Market
If the dividend funds drop less than the growth funds I many move some money from dividend to growth.
But I will keep enough dividend funds so I have enough to supplement my SS to handle my spending.
Also remember at some point our SS will drop when one of us dies.
So I will need forecast what our spending will be and how much dividend income will be needed.
Excellent video! One of the best explanations of the strategy I have seen. Have been building income stream since 2012 and now my wife and I can live off dividends without selling any stock. We do have some cash invested in CD’s and MMA’s for unexpected expenses.
Great! Share your story so they can do the same!
The shear amount of dividend obsession on Twitter is wild!!!
Troy did an excellent job of walking through the logic and fundamentals of dividend investing and why it can make sense for people to incorporate into their retirement strategy. Wonderful video and examples!
Thanks so much, @bluecollarbudgets!
Thank you for this excellent video about dividend investing! Greetings from Cascais/Portugal.
Excellent infirmation!
Great video, excellent explained for those under 50yrs old, for the long term investors. Thank you for sharing.
Thanks for the kind words, @8Lynch47! We're glad you enjoyed it.
Thank you so much. Your explanation is great, and nicely. Thanks for teaching us
Thanks for the compliment @skysyc1922, we're happy it helped!
thank you for a clear explanation of how dividend growth investing works..
You're welcome, @johnyjsl9219! Thanks for watching.
This is the type of video this channel needed. Can you cover how a portfolio could maximize yield on cost with this strategy?
Thanks Brad! We sometimes do 'Comments Answered' videos so we may be able to address it then! Otherwise, we'll add it to our topic idea list. Thanks for watching!
More financial advisors should promote this rather than total dolars
You really did a great job in explaining. I own 3,000 shares of Abr aka Arbor Realty. It accounts for less than 3 percent of our portfolio. The Div is 13.4 percent. What’s your opinion of investing in this high payer?
I was wondering about taxes. If you reinvest the dividends is the dividend tax deferred?
(2) of the dividend aristocrats yoy listed habe cut their dividend (AT&T amd WBA), amd 3M probably will duribg their health care spin off.
But dividend growth stocks are great still! Great video!
Hi Joe, thanks for watching and for the update! We're glad you enjoyed the video.
I do understand dividends paying out or reinvest. How do, say, SP500 Index fund pay out , or reinvest to increase shares.
Thank you.
thank you for this great video! a question please: is the percentages rate of return shows on the stocks have included the dividend rate or dividend rate is additional for added to the returned rate??
Would you please answer the question??
Total rate of return includes the dividend into it. For an example. If the sp500 has a 11.5% rate of return and a 1.5% dividend. Its actually a 10% capital gains return and the 1.5% dividend together.
Thank you so much.
SCHD, VOO, VGT 40/30/30
Thanks for watching!
I would add in Qqqm and spread a little into Msft Goog and Amzn
That’s a great portfolio…if I had $5 million to work with!
This was very informative. I plan to stay in VOO into retirement and it pays a nice dividend along with impressive returns.
That would be for around 70% of portfolio and the rest in NVDA, AMZN, MSFT
Thanks for weighing in, Patty! Glad it helped.
Great video. I am an experienced investor who has been in the market for a long time. I don't need help from financial professionals, but if I did, I would seriously consider you for seeking advice. Thank you.
Me too! It's a great video.
Sharma...based on your comment I'll watch vid
So the question would be why not invest for growth, and then, when you retire, take money out of your growth, part of your portfolio and buy dividend, paying stocks are ETFs
It would seem that you would come out where your head doing it this way, rather than dollar cost averaging into dividend paying stocks are ETFs
Troy could you comment on that because I would guess that would be the question most people would ask
Great presentation by the way thank you
Or just invest in growth companies and take exactly how much income you want/need. Then you're in control. You don't end up with an excess that affects other areas, like IRMA, etc. The value of the fund goes up more than a dividend fund, too.
Perfectly well said
Troy if you’re out there reading this, please give us your input. I certainly respect what you have to say.
You can do whatever you want. You need to choose good businesses that will grow over the long term. I like dividend paying stocks (Microsoft, Visa, Starbucks, Trow, Abbvie, Blackrock, Target, McDonalds etc).
One great thing is I never have to sell, but I always have the ability to do so. Plus I receive money when the company is down.
Investing in Amazon, Google and Tesla is fun when they're up 75-200%. Not so fun when they're down 50%.
If you are going to go growth you need to have iron hands, and need to time your sells well or you will be the average investor (1-2% per year).
Dividend investing on the other hand is simpler. You invest, they give you a dividend, you invest more. One day you turn off the drip and collect the dividends. Easy peezy.
Growth is less certain than dividends. Many growth companies are priced for growth - they are trading at 25-30 times earnings, implying growth of 10-15% over the next 10 years. Many of them, however, turn out to be duds, and eventually the market catches on and their price drops dramatically. This is especially likely to happen if the overall market goes down.
Hey @missouri6014, @normswan5806, @joespath2303, @vinyl1Earthlink! Thanks for watching and for the discussion - it would be too much to go through in the comments section, but we often do 'comments answered' videos, so hopefully we'll be able to make one for this video soon and address some of the things you're talking about in an upcoming video!
Hi, great video. Can you make a video to help people retire early like at 50 years old from dividends. The pros and cons . Thanks in advance.
Hi @alexanderviltrez3979, thanks for watching! We'll definitely add it to the topic list.
This video is missing the mark on a few points. If you have a 1M portfolio and withdraw at 4%, that means that you are depending on the stock market to go up by 6.5% per year while withdrawing 4% - leaving 2% to continue to grow the portfolio. LIkewise if you have a 1M portfolio with AMLP which yields 7.5%, you can withdraw the same 4% but keep 3.5% invested to keep growing the portfolio.
There is risk in both approaches. The only "risk free" approach is to buy treasury bonds which are safe until our government goes bankrupt due to unconstrained spend.
Dividend/Dividend Growth will allow me to retire and live 100% off dividends and defer SS until later and never touch my principal. I do not understand why more CFPs don't suggest this and instead always talk about the 4% rule or the bond + stock method.
Can you elaborate?
👍
Thanks @user00165!
Etfs all the way
Why not just do treasuries, TIPS with no downside risks if you are closer to or in retirement
Not so. As I found out when interest rates went up the face value fell substantially just like any bond. True, the interest rate on the TIPS went up but it hasn’t come close to making up the loss of principal.
Get yourself a tie. What do you think this is, casual friday? And you're John fetterman. How can I take you seriously? Just kidding...... Good video
Lol Thanks @FLOODOFSINS..
T has cut its dividend.
Hi Michael! Thanks for the update and for watching!