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Unfortunately, people always make decisions based on recent past than on future.
In an unprecedented time when capital has trounced labor in returns, tax treatment and political clout and likely to continue for at least another 4-5 years before there is a serious backlash, millenials are better off choosing the best path to accumulation of capital and growing it now in the favorable environment than hoping for average salaried labor to make their retirement.
This means taking jobs in tech or finance that have outsized salaries with risk but a potential for making enough for a lifetime in a few years and doing this when they are still young and THEN having the option to do whatever they want later in life when the money they have accumulated is working for them without having to do much.
Traditional approach has been to do the opposite and will lead to a very difficult retirement and a lifelong struggle for most.
I am not saying this is the way it should be because it is a distortion of life but it is exploiting the current situation so they can do much good later on when they are financially secure.
So... a 25 year old buying established companies that pay dividends. Smart move.
I only wish I would have bought stocks like that when I was 25. Those were the type of stocks my dad would buy as he was approaching retirement. But I couldn't be bothered with that. However, I finally learned that my dad was smarter than I gave him credit for at the time. JNJ and PG sitting in a brokerage account kicking off and reinvesting divi's for more than 30 years would now be a dream.
thanks Ted...pretty impressive. Of course, if you're 25, the challenge is to identify those companies that will thrive (or at least survive) over the next 30 years.
Which brings up a point. I sensed that the author of the article you originally referenced saw the 25 year old investing in dividend paying stocks as some sort of oddball. If so, I think that does the young investor a disservice. Perhaps I am reading too much into this.
Comments
In an unprecedented time when capital has trounced labor in returns, tax treatment and political clout and likely to continue for at least another 4-5 years before there is a serious backlash, millenials are better off choosing the best path to accumulation of capital and growing it now in the favorable environment than hoping for average salaried labor to make their retirement.
This means taking jobs in tech or finance that have outsized salaries with risk but a potential for making enough for a lifetime in a few years and doing this when they are still young and THEN having the option to do whatever they want later in life when the money they have accumulated is working for them without having to do much.
Traditional approach has been to do the opposite and will lead to a very difficult retirement and a lifelong struggle for most.
I am not saying this is the way it should be because it is a distortion of life but it is exploiting the current situation so they can do much good later on when they are financially secure.
Most millenials seem to be doing the opposite.
I only wish I would have bought stocks like that when I was 25. Those were the type of stocks my dad would buy as he was approaching retirement. But I couldn't be bothered with that. However, I finally learned that my dad was smarter than I gave him credit for at the time. JNJ and PG sitting in a brokerage account kicking off and reinvesting divi's for more than 30 years would now be a dream.
Regards,
Ted
http://www.dividendgrowthinvestor.com/2013/11/dividend-investors-should-ignore-market.html
Regards,
Ted
http://www.1stock1.com/1stock1_489.htm
Which brings up a point. I sensed that the author of the article you originally referenced saw the 25 year old investing in dividend paying stocks as some sort of oddball. If so, I think that does the young investor a disservice. Perhaps I am reading too much into this.