Start investing in stocks paying dividends now and create a sustainable and growing income stream that will support you in your golden years.
What major risks might you face in retirement?
Will you run out of money?
Will your income keep up with the increase in living costs?
Will you be able to cover health care costs?
Your retirement income needs to be sustainable. It should be safe during bad times, keep up with inflation (usually 2%-3% per year), and last at least as long as you do!!
Wouldn’t it be nice to pass on something to your kids too?
Is there such an animal that can accomplish all these things? Thankfully yes... stocks that pay high dividends.
A properly constructed portfolio of high quality blue chip companies will give you a stream of income that will last an entire lifetime and beyond. You just have to keep an eye on it! It will be sustainable because you won’t need to touch your nest egg... just live off the income.
This stream of dividend income will give you a raise every year, outpacing inflation by a long shot. As your payments increase, often by at least 10% annually, so does the value of your whole portfolio!
Have your cake and eat it too!
When the economy hits the skids, you will take comfort in knowing that the solid companies you have ownership in, are flush with cash and have survived and thrived many past recessions.
Throughout history, these stocks that pay dividends have managed to increase payments to shareholders through boom and bust. They keep debt low and ample cash in hand so they can easily weather any storm.
They sell products that people need regardless of whether the economy is up or down. They are rescession resistant companies and you will learn how to invest in them later.
If an emergency comes up, such as health costs, you will be able to sell some stock without having a large impact on your income.
To top it all off, because you won’t have to touch your growing nest egg, you will be able to pass on your financial legacy to your children for them to grow!
Also check out Growing Income From Top Dividend Paying Stocks vs. Mutual Funds, Bonds and Annuities
Ok now that you know why investing in stocks paying dividends provides a good means of retirement income, lets keep moving along!
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