Headline: Stock Market Sale! Stocks crash & burn!
Bad for those invested at the peaks but great for you if you’re looking to invest for retirement.
What do you do? Why?
Buy companies with strong consistent earnings that have large dividends.
The FED said they will keep rates low and mortgage refinancing is at an all-time low.
Bonds are stuck providing a low percentage for a while according to the FED report.
Do you have bonds?
Cash them out and buy stocks with large dividends for retirement.
Value Key: Reinvest the dividend over time and the return will outperform the S&P 500.
Stock prices are based on earnings and the fluctuations are based on short term news that traders take advantage of to make large amounts of money in a short period of time.
This is not a retirement option.
The good news for you
Great stocks are at a discount right now.
But what if stocks continue to fall?
The stocks will lose value in the short term but when the bad news affecting stock price fades – stocks will return to their earnings price but the value here is in the dividend.
What is a dividend?
Short answer: A company pays a quarterly fee for you to own their stock. Anything over 4% provides downside protection for a stock which means the stock will not plummet because there will always be a buyer for the dividend.
What is special about a dividend that protects the stock price of a company from falling?
Short answer: The lower the stock price goes – The higher the dividend becomes,
(i.e. Stock $40, Div. 4% – stock falls to $30, div. 5%) = higher dividend larger cash return on stock.
Tax tip: A dividend is a passive income and the IRS requires you to only pay 15% tax on earnings instead of 35% (nice deal) – if you own an organization then you only have to pay 15% on 20% of your earnings (sweet).
Short List of Recommended Dividend Stocks
Johnson & Johnson
Kinder Morgan & Partners
Verizon
And a few other high yielding stocks that can be researched at: http://finance.yahoo.com/
Good luck developing your wealth.
Feel free to leave questions and comments!
Keith Miller | Professional Coach | Million Dollar Coaching | (855) MY-PRO-COACH | https://www.milliondollarenterprises.com
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