A dividend trap will do two things in your portfolio. First, it will leave you with the impression of safety. The market goes crazy, it creates confusion, it goes up and down, and then you feel safe because you receive your dividend every month or every quarter. That dividend is a high yield and produce a lot of income from your capital. It feels good, right? You feel smart. But the second thing the dividend trap will do is to destroy that capital. Management at one point or another will …
3 Fundamental Elements of Portfolio Management
Have you ever noticed that most of the difficult goals in life come with very simple solutions? You want to lose weight? Eat less and focus on healthy foods, and train more. You want to build a business? Identify a problem and offer a solution. You want to retire stress-free? Pay yourself first and invest systematically. You want to travel the world in your 30’s? Buy a RV, quit your job and start your adventure! Those goals are all considered “difficult” to achieve because they require …
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Invest Now, Or Wait? The Results of My Decision
The market is at an all-time high, you have $100,000 to invest, what do you do? Invest now, or wait? I faced this very situation not too long ago: Invest now or wait. $100,000 is a lot of money. I worked very hard to build that nest egg. For a long time, it was growing inside my former employer’s pension plan. When I finally realized that I didn’t want to wait until I’m 65 to enjoy freedom, I quit my job and asked for my pension check! The exact sum was $108,362.19. This was the largest sum …
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How to Invest a Lump Sum of Money
What you are about to read is my story on how I invested a lump sum of money ($108,760 dollars and 2 cents!) in the stock market. I started this portfolio from scratch in September 2017. You can read my monthly update here. My goal is to share my story and tell you how I managed to invest in this crazy market. Waiting is not an option. Investing today is the best decision you will ever make. The arrival of a Lump Sum of money would likely create mixed emotions. It could come from a former …
Dividend Investing is Fun & Exciting
“If investing is entertaining, if you're having fun, you're probably not making any money. Good investing is boring.” -George Soros There is this belief that investing should not be entertaining. In fact, they say, it should be plain boring. This is probably related to the fact that you should not let your emotions get in the way when you use your money for a “greater purpose”. After all, lots of excitement could also lead to a big depression when the fun is over. Letting your emotions take …
Sell 33% of your Portfolio – a Step by Step Method
Selling stocks is a common topic discussed among investors. Sell because the company cuts its dividend. Sell because the market is about to crash (definitely my favorite reason). Sell because the stock is overvalued, etc. Those examples discuss more the timing to sell a position to eventually use the proceeds and invest again. But what happens when you need to sell stocks to finance a project? One day or another, you will have to sell stocks to finance your retirement, buy a rental property, pay …
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