Do you dream of having enough passive income to retire, or continue to work on your terms? Sadly, few people attain that dream. Even people who retire with millions of dollars are concerned they will outlive their savings. They're right to be concerned. Traditional financial wisdom says if you only spend a little of your portfolio each year, usually around 4%, you probably won't outlive your portfolio. The problem is, "probably" isn't good enough. No one knows how long they're going to live or be able to work, what their financial needs are going to be or what's going to happen to their investments in the future.
After retirement your financial needs are going to increase, mainly due to increased medical costs and inflation. History has taught us financial markets are anything but stable. If you're forced to sell stocks to raise money to live, in a bear market or stock market crash you're going to be forced to liquidate more than 4% of your portfolio, and probably much more. With this strategy, no matter how much you've saved, there's always the disturbing possibility you could outlive your savings. Another strategy to raise money is to invest in fixed income assets such as bonds or annuities. The problem with these kinds of assets is they generally have very low rates of return, and therefore require a very large amount of principal to generate enough income to be financially free. A third, and by far the best, strategy to raise money is to invest in high-earning, high-yield dividend stocks. With this strategy you don't have to sell stocks to raise cash and you don't need a large amount of principal to generate a large and reliable income stream.
It is said that Albert Einstein, when asked to name the greatest invention in human history, simply replied "compound interest". At Fly High Investing we believe Albert Einstein was right. Like compound interest, compounding dividends takes advantage of the snowball effect that happens when your dividends generate even more dividends. Compounding is one of the most powerful forces in the world of investing. The day you start putting the power of compounding dividends to work is the day you begin your journey to financial freedom and retirement security. The only question that remains is when you will reach your goal. Even if you have just a little money to invest, through the power of compounding dividends, you will create an income stream that sets you free to live the rich and meaningful life of your dreams.
Read more about the advantages of dividend income investing under the INCOME INVESTING ADVANTAGES tab. Under the REASONS TO SUBSCRIBE tab we explain why we believe our portfolio of 50 high-earning, high-yield dividend stocks is the fastest and safest way to reach your goals of financial freedom and retirement security.