Today’s Prep:
We hear about dividend-paying stocks, but what are they? Find out as we take your email questions. We’ll also hear from a couple with a significant age gap between spouses.
Equipping Points:
00:47 – Why Not Invest In Dividend-Paying Stocks?
- While, it sounds simple, dividends aren’t guaranteed. Therefore, if you’re living off of dividends, your income isn’t guaranteed either. After all, dividends are a form of income that a business is generating, and businesses are always going to have ebbs and flows. While certain companies are consistent, you simply cannot count on them to meet your income needs in retirement.
1:45 – A Case Study on Dividend-Paying Stocks.
- Everyone thought General Electric (GE) was a blue-chip company, meaning folks counted on them for income. Unfortunately, GE’s stock tanked, and it recently got booted from the Dow Jones Industrial Average. GE was the only company remaining from the inception of the Dow. That just goes to show, any one company can fail.
3:02 – A Lesson From 2008.
- In 2008, we learned that no one is too big to fail. That’s why it’s important to diversify your portfolio and make use of other strategies when it comes to income planning.
4:44 – Couples Planning.
- Victoria is getting married. She’s in her late forties and her fiancé is almost 60. This presents a unique problem when it comes to financial planning. After all, Victoria’s spouse is going to retire years before she will.
Today’s Takeaway:
“Dividends aren’t guaranteed, and you shouldn’t rely on them as a sole source of income in retirement. Work with your advisor to generate an income plan. – Retirement Ready“
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Navigating Spousal Disagreements in Retirement Planning
Inside a marriage, retirement planning is a journey that ideally involves both partners working together towards a common goal. However, as with any significant life decision, disagreements can arise. Eric sheds light on some of the most common spousal disagreements regarding retirement and offers practical advice on how to navigate them.
Read More
Financial Wisdom from Ernest Hemingway
According to Ernest Hemingway, “In order to write about life, you must first live it.” Eric shares how his years working as a financial advisor have given him the experience to guide others through various market conditions and make a financial plan that is possible to follow. It’s not just about understanding the products and tools; it’s about knowing how people react to different financial stimuli and steering them accordingly.
Read More
Knowing Where You Stand in Retirement
Saving for retirement is not like it used to be. For too many, it’s a mystery whether or not they have what they need to retire comfortably. To best prepare for retirement, it’s important to know where you stand. Do you have an understanding of what your goals and financial needs are?
Read More
The Different Investor Personality Types
When it comes to financial planning, understanding your investor personality type can significantly impact your retirement plan.
Read More
Bad Financial Habits
Are your financial habits setting you up for a secure retirement or are they leading you down a path of uncertainty and uneasiness? Eric shares about the consequences of bad financial habits and what you can do to cultivate better ones. Instead of burying your head in the sand or overemphasizing the wrong things, take some time to recalibrate and get your financial life in the right direction.
Read More
Financial Decisions Shaped by Key Memories
Have you ever wondered how major historical events influence our financial behaviors? Or wondered what the root is of some of your or your family members’ financial decisions? In today’s podcast, we dive into the profound impact of these “black swan” events on our investment and saving habits. From the Great Depression to the 2008 housing crisis, these events have left lasting impressions on generations of investors.
Read More
Do You Have These Blind Spots In Your Retirement Plan?
Many people can have a couple of “blind spots” so to speak when it comes to their retirement plans. Do you worry you may not be accounting for everything you might need for your retirement? Then today’s episode is perfect for you!
Read More
Inside Out: How We Can Look at Finances Through the Characters of Pixar’s Latest Flick
There can be a lot of emotions when it comes to investing and planning for retirement. And what better way to discuss those emotions than through the characters of Pixar’s latest film, Inside Out 2?
Read More
The Importance of Preventative Care
Preventative care isn’t just for your health; it’s essential for your financial well-being too. By consulting a financial advisor early and often, you can avoid financial distress and make informed decisions that lead to a secure and fulfilling retirement. Many people will put it off for fear they will be told something they don’t want to hear or because of the perceived costs of financial advisors.
Read More
Preparing for Retirement like Noah’s Ark
Financial planning involves a lot of planning ahead, much like Noah did when he started building the ark long before the rain began. This metaphor serves as a powerful reminder that proactive planning is essential for weathering financial storms. Eric highlights that while we can’t predict events like market crashes or global pandemics, we can prepare for them by stress-testing our financial plans.
Read More