Beware of Investment Pitfalls!
When it comes to trying to correctly invest your money, you might feel a bit overwhelmed. In fact, your might reach a point where you repeatedly try and feel as soon as you have managed to make one step of progress, you’re taken two steps back. Sometimes seeing your returns skyrocket so much, stirs that fire inside someone so much, that you end up making irrational decisions to experience that profit ‘high’ again. A similar example is found in the Las Vegas statistics which show an astronomical amount of people that hand back their gambling winnings to the house after being up significantly.
This roller coaster that most investors go through can cause someone to eventually give up!
Now, this could be a result of investing in different stocks and then seeing a big investment you made in a speculative company crash right before your eyes. Or maybe, its a real estate transaction you got into that is costing you more than you thought and returning zero profits. The reality of the matter is that these things do happen and it can cause many people to give up.
Giving up as far as we are concerned, can be caused by a number of things… It can be as simple as starting to blow every paycheck you get on momentary extravagant pleasures or simply turning to primarily cash savings. Maybe it’s turning to the most basic and simplest forms of investments with low risk and very low reward…
We want to caution everyone not to give up so easily. Don’t lose focus of the power that there is in investing your own money. There is no doubt that you will go through ups and downs during your journey as an investor, but the goal is to keep going to end up on top!
So before you go and park all of your savings into CDs and US Bonds, consider this strategy that the staff at CrushTheStreet.com is currently implementing.
Here’s A Long-Term Strategy For All Those That Are Sick Of Losing Money!
SOLUTION TO GETTING RICH OVER THE LONG TERM!
Perpetual Dividend Raisers – Find companies that raise their dividend every year – and then reinvest those dividends.
Here’s how it works out.
Let’s say you buy a portfolio of quality Perpetual Dividend Raisers with an average yield of 4% and average annual dividend growth of 10%.
If the companies continue to raise the dividend by an average of 10% every year, as they have over the past 10 years, and the market generates its historical average return, a $200,000 initial investment will be worth $635,549 in 10 years.
If at that point you need the income stream, you simply stop reinvesting and instead collect the $28,808 per year in dividend income. That is likely 50% more than you’d receive if you invested the same $200,000 in a deferred annuity.
In 15 years, the $200,000 portfolio is worth $1,179,868 and spins off $59,968 per year in income. That’s way better than giving a bank $200,000 and getting excited about the interest accumulation of 3%.
Even better is that as long as the companies continue to raise the dividend, you’ll get an increase every year, something that won’t happen with an annuity and other fixed income investments.
So if you’re collecting $59,968 at age 80 and the companies you’ve invested in are raising the dividend by 10% per year, at age 81, you’ll collect $65,964. The next year you’ll receive $72,560, etc. And when you pass away, that million-dollar nest egg will go to your heirs.
Investing in Perpetual Dividend Raisers is the least expensive method of investing. Furthermore, you’ll make more money than with annuities, CDs, and all the other mindless investments there are out there that are geared to make OTHER people very rich and for you to stay quite!