Guest thu062012 Posted February 17, 2012 Report Posted February 17, 2012 Hi, Thanks very much for this comment. It help me to think about my ideals. Tks again and pls keep posting.
FunkyTown Posted February 17, 2012 Report Posted February 17, 2012 Mormonmusic:Can you let us know what stocks you haven't had a lot of success in picking? Your success depends a lot on how much risk you're willing to take. If you expect high returns, expect that you'll have to do a lot of research in to the companies you're picking.On the other hand, reinvesting in stocks that pay yearly dividends is usually safe as it's less prone to yearly problems.Take $100, 000.00 in a stock that pays about 5% dividends. We'll say the Bank of Montreal, because they've paid dividends every year for over 120 years. Pretty safe.After 30 years of reinvestment, this stock becomes worth $432194.24 - That's with literally no funds other than what you initially invested, plus the 5%/year it's paid out. And that's assuming there is no vertical movement in 30 years. Stocks like this almost inevitably do better than inflation, with stocks splitting and pay-offs. Chances are, it'll be worth far more.Do a search on Johnson and Johnson. If you had bought $100, 000.00 worth of stocks in 1980 and reinvested dividends until this year, you would now be worth $5.6 million and be bringing in a cool $300, 000.00/year for sitting on your bum.You'd be earning 3X the initial investment just in dividends. Read 'Rich Dad, Poor Dad' for ideas on how this works.
pam Posted February 17, 2012 Report Posted February 17, 2012 Mormonmusic asked that his account be deleted months ago so he won't be responding FT.
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