Are you looking for a new opportunity that can change your life? Do you dream of having enough passive income to retire, or continue to work on your terms? Unfortunately, few people attain that dream. Even people who retire with millions of dollars are concerned they'll 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 generate an income stream, 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 create an income stream 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 strategy to create an income stream is to invest in high-earning, high-yield dividend stocks. With this strategy you don't have to sell stocks and you don't need a large amount of principal to generate a large and reliable income stream.
Albert Einstein famously said “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” Like compound interest, compounding dividends takes advantage of the snowball effect that happens when your dividends generate even more dividends. 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. Even if you have just a little money to invest, by the power of compounding dividends, you'll create an income stream that sets you financially 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 read about the five reasons a subscription to Fly High Investing will provide you access to the information you need to attain financial freedom by the power of compounding dividends.