![[original_title]](https://rawnews.com/wp-content/uploads/2024/09/Dividend-Income-Advice-Needed-Bogleheadsorg.jpg)
Have a query about your private investments? Irrespective of how easy or complicated, you may ask it right here.
Dividend Income Advice Needed
A relative not too long ago moved into senior assisted residing facility. The next six dividend payers (KMI, UGI, Mo, ENB, O, and Vz) have been prompt to present the mandatory annual earnings since she has sufficient financial savings that if invested at 6% the dividends could be enough. What are the negatives in doing one thing like this? Feedback appreciated.
Re: Dividend Income Advice Needed
– Are they suggesting 100% shares? No bonds, no mounted earnings? A excessive stage of shares for an individual of assisted residing age could be very dangerous.
– However what’s being prompt is even riskier. Six shares is a very un-diversified portfolio. The danger is big, even for shares.
– Paying bills with dividends isn’t any higher than simply promoting parts of the property. So this big danger is being taken on to realize a aim that has no worth.
– Who’s claiming that this mixture of shares is assured to provide 6% in dividends, yr after yr after yr after yr?
– Talking of years, how outdated is that this particular person? For those who divide their property by their life expectancy, what is the quantity? If six p.c of their present property is sufficient to pay their bills, that implies that they are able to pay for 100/6 or 16 years of bills? Sure, sure, that is extremely sloppy math, however…?
– Who’s advising this? Would the particular person advising this earn money if their recommendation is adopted?
Re: Dividend Income Advice Needed
KMI = Kinder Morgan Inc (oil and fuel pipeline)
UGI = UGI Corp (vitality distribution)
MO = Altria Group Inc (tobacco)
ENB = Enbridge Inc (pipeline and enegy)
O = Realty Revenue Corp (actual property funding belief)
VZ = Verizon Communications Inc (telecom)
“Ritter, Tod und Teufel”
-
- Posts: 1735
- Joined: Mon Mar 20, 2017 10:27 pm
- Location: California
- Contact:
Re: Dividend Income Advice Needed
It’s important to do not forget that any dividend distributed will instantly trigger internet asset worth to drop equal to the dividend. There are not any free lunches right here. Unique give attention to dividend is a traditional newbie mistake.
I’ve beforehand offered an thought of utilizing two balanced funds to hit a 50% inventory / 50% bond portfolio. One instance is equal portion of Vanguard Balanced Index, and Vanguard LifeStrategy Conservative Progress. Simply withdraw in accordance with want, maintaining these two funds equal portion.
Previous consequence doesn’t predict future efficiency. Talked about investments could lose cash. Contents are offered “AS IS” and any implied suitability for a specific function are disclaimed.
Re: Dividend Income Advice Needed
Bonnan wrote: ↑Thu Sep 12, 2024 10:31 pm
A relative not too long ago moved into senior assisted residing facility. The next six dividend payers (KMI, UGI, Mo, ENB, O, and Vz) have been prompt to present the mandatory annual earnings since she has sufficient financial savings that if invested at 6% the dividends could be enough. What are the negatives in doing one thing like this? Feedback appreciated.
The “negatives” so to talk appear to be that these suggesting this plan seem to view the prospect of proudly owning these shares in the identical lense as one would view Treasury securities with a 6% coupon.
Sadly- dividends aren’t the identical. There is no such thing as a assure that buyiing these shares will produce an annual earnings of 6% of the entire property.
