He has been laying on the side of the road since morning! praying he is still alive!

Dividend growth investing is a common sense approach to wealth building and used by millions of people to build retirement security. While dividend growth investing requires a time horizon of 10 or more years, it is fairly simple to learn and apply.

The foundation of this investment style is to invest in sound, well-managed companies with long track records of paying and increasing dividends. The secret to success is that rising dividends over time grow your money through the compounding of reinvestment.

Compounding dividend growth is a great wealth building system as it exponentially super-charges the rate that your money grows. The great investor, Warren Buffett, will not buy non-dividend paying stocks. He fully recognizes the increased wealth that dividends provide.

During its 94 year history, over 50% of the S&P 500 total return came from dividends. The average annual return since inception is around 10% with dividends reinvested.

For example, assuming a current annual dividend paid of $3.00 per share at annual growth rate of 7% and the stock price growing at 5%, $10,000 invested would increase to $57,108 over 20 years. The reinvested dividends alone would be $21,823.

Out of all American large-cap to mega-cap stocks, 513 pay dividends. Many are considered blue chip companies that meet or exceed the growth rates just mentioned.

Here are three examples of companies that exceed these growth rates and the years they've increased dividends: Johnson & Johnson - 54 years; Procter Gamble - 58 years; 3M - 60 years.

Dividends are also indicators of well-managed companies with sound business models. Dividends are real money whose source is a strong balance sheet, good cash flow, and low corporate debt.

Foundational to this method is investing in companies that continue to grow under varied economic conditions. Dividend growth investing is a tortoise vs hare approach to wealth building and requires companies that have long histories of success in all economies, both good and bad.

Dividends provide peace of mind during market downturns. The stock market historically goes through periods of highs and lows, with sharp fluctuations in share prices.

Down markets provide opportunities to buy company shares at bargain basement prices, and the growing dividends pay the investor to wait for market turnarounds. Stock shares bought at discount with dividends reinvested help smooth the long-term ride in the market. This provides a margin of safety.

The dividend payment is not tied to stock share price. Investors receive cash dividends from well-run companies that are in good financial shape. This, too, gives a margin of safety.

Reinvested dividends also build a hedge against inflation. Even a 3% rate of inflation will stymie the real purchasing power of a dollar bill, reducing it to about $0.55 cents over time.

$10,000 hit with 3% inflation over 20 years is reduced to $5,536.76 spending power. An investor would need $18,061 to have the same buying power as the original $10,000.

On a nest egg of $100,000 in retirement funds, the lost purchasing power would equal $55,367.58. It would take an amount totaling $180,611.12 to provide the same security.

To summarize, you cannot match inflation and expect to build wealth. You must exceed inflation by a significant margin to give yourself a good retirement cushion.

Over the long-term, dividend-paying companies provide average annual returns of 8.5% vs the 4.3% return of non-dividend stocks. Still, yet, companies with growing dividends return 10.6%.

The power of compounding dollars through dividend reinvestment is one of the greatest wealth builders available to everyone, and dividend growth investing puts this power in your hands.

He has been laying on the side of the road since morning! He has not moved, not even an inch. He can barely lift his head. He is too weak. Hours later he was still laying on the same road in the middle of nowhere! He did not get there by himself! He desperately needs rescue and foster and medical care! Requested finder to go back, praying he is still alive!!!

Rio Grande Valley, transport available

if you or someone you know is interested in rescue please contact Leslie Hennings

STATUS : - read comment for update from crossposter
Healthcare expenses in retirement is a growing concern for retirees. The increasing costs of healthcare and the inflation factor that goes along with it creates a growing need for advanced planning related to preparing for these costs. Currently Medicare Part B inflation is running around 8% and Part D around 7%.

Healthcare and Medicare expenses are one of the largest expenses - even larger than recreation and housing costs combined. Consumers are often confused when it comes to what is the proper amount to plan for on the "Medical Expenses" line item on their household budgets. Many do not realize that an individual's Medicare premiums are affected by one's annual income. Understanding one's MAGI (Modified Adjusted Gross Income) and implementing strategies to plan around certain income thresholds can positively affect healthcare expenses in retirement.

Here's an example - a married couple who moves their tax bracket one threshold lower can save $70,000 over their lifetime. How can planning make that happen?

Non-qualified annuities, Health Savings Accounts, Permanent Life Insurance, Reverse Mortgages, ROTH IRAs, are all ways to reduce one's taxable income. Required Minimum Distributions (RMDs) occur when an IRA owner is forced to begin to take withdrawals from their IRAs in the year in which they turn 70 ½ years of age. Utilizing strategies to reduce IRA balances earlier in one's retirement - such as ROTH Conversions, early withdrawals, and QLACs (Qualified Longevity Annuity Contracts) are ways to reduce the amount of funds that must be taken from IRAs under the RMD rules - and thereby reduce taxable income.

Annuities that are in payout phase use a tax basis called "Exclusion Ratio" - this simply means that the payment that someone receives is treated as part "return of investment" and part "taxable interest". Annuities can take lump sum deposits and create guaranteed lifetime income with potentially solid benefits from a tax planning standpoint. On the Permanent Life Insurance front - cash value in life insurance contracts can often be accessed tax free through a provision of policy loans. Finally - Reverse Mortgages create funds that are not subject to state and federal income taxes.

Health Savings Accounts are becoming a notable tax planning tool. They have "triple tax advantages" and if implemented early can create a tax free pool of funds that can be utilized to fund healthcare expenses later in life.

In closing - tax planning goes hand in hand with investment planning. Combining both tax and investment planning can create real savings into retirement years. Retirement is mainly about income more than growth. Controlling expenses - which taxes and healthcare are front and center - can put more spendable money into retirees pockets to help them enjoy their retirement years.

2 Responses to "He has been laying on the side of the road since morning! praying he is still alive!"

  1. Why would someone leave food and not put him in the car and get him help? Seems crazy to me.

    ReplyDelete
  2. What is the update? Does anyone know?

    ReplyDelete

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