Viewing a single comment thread. View all comments

hbkx5 t1_j67weun wrote

Suggest you buy dividend stocks, You could have continual income for the remainder of you life with the wealth you have now. Depending on the stocks you choose you could invest around $400,000 and have about $30,000 passive income each year. If you would like a list let me know and I will post.

8

Yoda2000675 t1_j690lq3 wrote

It’s a decent strategy, but you’ll miss out on a lot of growth. Dividends are better used for retirees that will rely on their holdings for income

1

hbkx5 t1_j6beuoh wrote

Yes and no, dividends are great to live off of and invest with. They would still have extra money from the amount they listed to invest and grow with if they pleased. If they live cheaply for the next 10 years of their life they could pay off a home and a car from the dividend. The remainder of their life could just be passive dividend money they mostly invest with.

Over the course of their life time (if they are somewhat young) It is a much better investment than most, however I do agree they should diversify. A mix between stocks for dividend, some stocks for growth, a small business with little to no maintenance / rental property, high interest hedge fund, alternative investments (something collectable that goes up in value over time, comics, lego's ect.), personal checking /savings / cash and finally a small amount of crypto (about 1% of total wealth) would be ideal IMO.

I am also big on generational wealth and building a better tomorrow for your descendants so that hopefully they can live a better life and in turn pass that wealth and tutelage on to their kids, so on and so forth.

1

Yoda2000675 t1_j6bm8zd wrote

I just meant that they’d average out to get better returns by focusing on growth stocks and ETFs long term.

Dividend stocks tend to underperform just slightly because they generally aren’t going to grow much. Having dividends auto buy partial shares is by far the best way to use them and ends up avoiding the issue of dividend cash income being taxed at the rate of income tax rather than capital gains.

1

codemonkey14 t1_j6bot4i wrote

Theoretically, if I have an investment that provides me a middle class income for 0 work consistently for the rest of my life, why the hell would I care if I “missed out on a lot of growth”? That basically gives you “fuck you” money.

1

Yoda2000675 t1_j6brbem wrote

Not with inflation. If you pocket your dividends every time instead of reinvesting; then you will end up making less as those stocks wont grow to keep up with it.

Companies only pay big dividends when they’re effectively done growing.

1

lawbotamized t1_j6dkbe9 wrote

I would like to know more about this. Know nothing.

1

hbkx5 t1_j6e8wpe wrote

Are you asking how dividend stocks work? What specifically would you like to know?

1

jbot747 t1_j6h9k66 wrote

You can get wrecked on dividend stocks. Source: me

0

hbkx5 t1_j6hekah wrote

Not if you pick correctly.

1