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
What 400+ Advisors Say Really Keeps Retirees Up at Night
What are Americans really concerned about when it comes to retirement? In this episode, we unpack the results of an insightful survey from Financial Advisor Magazine, which was completed by over 400 financial advisors. We’ll also compare these answers with the real-world concerns we hear every day from the clients in our own practice.
Read MoreBracket Busters and Stock Flops: The Risky Game of Picking Winners
March Madness is here, and just like filling out a bracket, picking individual stocks can feel like a thrilling gamble. But the odds of winning big are slim. In fact, history shows that most stock picks, like most brackets, end up busted.
Read MoreAre Hidden Fees Draining Your Retirement Savings?
In this episode, Eric reveals the true cost of investing and how to protect yourself from unnecessary financial drains.
Read MoreWhat Game Night Can Teach Us About Financial Planning
In this episode, Eric breaks down the surprising financial lessons hidden in classic board games, offering valuable insights to help you navigate your retirement strategy.
Read MoreMailbag – Upsizing, Financial Advisors & Business Owner Planning
Join us as we answer questions about the challenges of downsizing, the emotional aspects of planning for family gatherings, and the realities of transitioning into a financial advisory career.
Read MorePlanning for Kids, Grandkids, & Your Future
As many nearing retirement age are discovering, adult children and grandchildren can significantly influence financial strategies, making it crucial to understand how to navigate these relationships effectively.
Read MoreFinancial Planning Conversations for Couples
This episode is focused specifically on that planning we do with couples with insights on how we help them navigate tricky conversations about money and retirement.
Read MoreIs Your Retirement Based on Wishful Thinking?
Many people fall into the trap of wishful thinking when it comes to what they expect will happen in retirement, but a successful retirement isn’t built on hope and assumptions.
Read MoreSpending With Confidence in Retirement
Eric shares strategies to help retirees enjoy their savings while ensuring financial security.
Read More