Comments on Dividend Growth Investor: Living off dividends in retirement

Well, it's very important acctually to make pl...

2010-12-10T00:29:22.233-08:00

Well, it's very important acctually to make plans for your retirement. A lot of people even concentrate on savings to avoid financial difficulties. Some of them even invest for retirement to feel confident in their future. Although, it's rather difficult to foresee evn the nearest future due to current unstable and difficult financial times.

I would also be interested to know what will happe...

2010-05-17T21:24:57.090-07:00

I would also be interested to know what will happen if interest rates rise? It seems that can be as soon as the end of this year.

The "Canada's youngest retiree" at 3...

2010-04-26T07:37:48.732-07:00

The "Canada's youngest retiree" at 35 was Derek Foster. His book was on the mark, but there are many nay sayers out there since he switched his strategy to a more options focused approach.

This is a very helpful article. It is only two y...

2010-04-24T14:24:18.622-07:00

This is a very helpful article.

It is only two years since I was introduced to the world of dividend payers and I am only sorry I didn't do the necessary research when I was younger.

I just assumed that the mutual funds in my 401K were the way to go, and far more stable than individual stocks. I found out in 2008 that I was much too complacent. My funds did not do as well as the reliable dividend aristocrats like P&G, J&J and KO among others.

At that point I finally took control of my own finances.

I have been warned off these stocks by those who point out that their best days of growth are past. But the stability offered by the reinvested dividends is enough for me as a supplement to income. I only have about 15 years before retrement; hopefully younger people will 'wise up' before they reach my age.

It seems to me this is the best kept secret among those planning for retirement; they are overwhelmingly focused on bonds and mutual funds. They certainly are good options for many people, but the dividend payers tend to be downplayed or ignored. I can't understand why, unless - like me - they don't do enough homework.

Retirement can be the happiest or saddest day of y...

2010-04-24T03:58:58.709-07:00

Retirement can be the happiest or saddest day of your life. It is important that you re-evaluate your preparedness on an ongoing basis. Changes in economic climate, inflation, achievable returns, and in your personal situation will impact your plan. We so hyped into believing that all we need to do is make the maximum retirement contributions every year, stay fully invested, wait for time to work it’s magic and we’ll all live happily ever after.The retirement has something like just lazing on the sofa reading a novel without any worries, then that's not very different from how most of us wish to spend our retirement, is it not? . The difference is in the planning & application to achieve that standard of retirement.

Hey I can't remember the name of the book, but...

2010-04-21T21:54:54.471-07:00

Hey
I can't remember the name of the book, but there's a local author who retired at 35 and currently lives off dividends.
He must have followed strict tips on budgeting to be able to invest so much so quickly, but he also talks about finding those stocks that pay the highest dividends.
Anyway, thanks for sharing,
Guy

Great counter-points to the Seeking Alpha criticis...

2010-04-21T18:51:33.561-07:00

Great counter-points to the Seeking Alpha criticism. The author of that post seems to have totally missed the "growth" concept. He apparently thought you were suggesting that a new retiree could buy dividend stocks the day after he received his last paycheck, and then live off the current yields. You'd think an "expert" would be more appreciative of a plan that requires actual forethought and well, planning.

In a related question... what do you think may happen if/when interest rates rise, possibly not too long from now? As you have noted, current yields have eroded since '09. My belief is that investors have bought up quality div payers in part because there aren't many better options (that aren't much more speculative). However, if rates go up, then bonds, even bank CDs, look better. I wonder if that would improve the current yield situation a bit?