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“
More From Eric:
The host: Eric Peterson - Contact - Call: (515) 226-1500
Subscribe To The Podcast:
Apple Podcasts - Google Podcasts - Spotify - Stitcher - iHeartRadio - TuneIn
Check out some other recent episodes
Spending With Confidence in Retirement
Eric shares strategies to help retirees enjoy their savings while ensuring financial security.
Read MoreWatch Out For These Financial Half Truths
Eric pulls back the curtain on some of the most common financial half-truths that many retirees and investors encounter. As someone gearing up for retirement,
Read MoreAnswering Common 401K FAQs
The 401k is the most common way that people save for retirement, which is why we get a lot of questions on the show and in the office about this employer-sponsored plan.
Read MoreMistakes People Make When Choosing An Advisor
When you’re ready to start working with a financial advisor, how do you find the right person to help you reach your financial goals?
Read MoreFinancial Lies We Tell Ourselves
We all tell ourselves little white lies from time to time. But when it comes to our finances, these “little lies” can have se-rious consequences.
Read MoreThe Stress That Comes With Retirement
Eric discusses why this phase can be so daunting and offers strategies to ease the transition.
Read MoreFinding Financial Silver Linings
Throughout our lives, there will be times when the markets rise and times when we experience downturns. Largely, we don’t have control over the circumstances we’re dealt, but we do have control over how we respond to those situations.
Read MoreThe Diverse Definitions Of Diversification
Diversification is one of those buzzwords you hear often in financial planning. While many people know it’s important, few are clear on what it actually means when applied to various aspects of their financial strategy. In today’s episode, Eric and Marc will bring you the diverse definitions of diversification.
Read MoreThe Use Of Technology In Financial Planning
As technology keeps advancing, it’s made our lives easier in so many ways. Tasks that used to need outside help can now be done on our own with just a few clicks. This shift has also brought more accessible online financial tools, but how accurate and helpful are they really?
Read More