- 05 Oct 2024 04:56
#15326432
This is not an either/or choice. I have always had just enough dividend stocks to meet my cash flow needs. Everything else in high quality growth stocks. But if you are buying low-yielding crap (read bonds, most mutual funds) you are diverting more capital toward income than necessary and consequently less toward growth than optimal. How many “financial advisors” preach this to their clients? Almost none. Every one I’ve ever talked to preaches the same advice about “diversified portfolio” (stocks, bonds, index funds, gold, etc.). My strategy beats that consistently for 44 years.
SpecialOlympian wrote:We've gone over this before. Some people need their excess earnings to generate income. Some need it to grow for a future retirement timeline.
And why should it beat inflation? You are taking your money as income, now. Money now. It's not a radical concept. I'm also not a CFA I don't make investment choices and frankly I find those creeps gross. I just posted about a CFA who almost got into a fight with a wall mounted television.
Dividends and interest payments literally reduce the value of a security. More payents = less value. For a person who needs their retirement savings to function as a source of income, growth isn't important. Starving to death on top of a pile of money doesn't benefit you. You can't spend growth.
Also I'm a CFP not a CFA. I don't pick stocks. I can't imagine a more nightmarish career than sitting behind a Bloomberg terminal. I actually talk to people instead of looking at 80's Aliens movies style representations of financial readouts. No joke, they haven't updated the Bloomberg terminal interface in decades and it still runs in fucking DOS.
This is not an either/or choice. I have always had just enough dividend stocks to meet my cash flow needs. Everything else in high quality growth stocks. But if you are buying low-yielding crap (read bonds, most mutual funds) you are diverting more capital toward income than necessary and consequently less toward growth than optimal. How many “financial advisors” preach this to their clients? Almost none. Every one I’ve ever talked to preaches the same advice about “diversified portfolio” (stocks, bonds, index funds, gold, etc.). My strategy beats that consistently for 44 years.