Mikeoxenormous
Diamond Member
No, I use some of the dividend income for spending, and use some of it for reinvestments, that is called continual growth. Just because I want to leave a fortune to my kids, doesn't make me a bad guy, like some libtards think, except for those like the Kennedy's and Buffets.Why? If you have income generated from Dividends who cares what the hit on the portfolio is. As long as they continue to pay, take some of that dividend and buy more stock when it gets lower. That is cost averaging in a nutshell.No you ride out the ups and downs and keep investingUnfortunately people with 401Ks don't liquidate.I liquidated a few months back. I'm ready!
That strategy is great if you have the time. What if you are a 70 year old in retirement? Then you don’t have the luxury of taking a 50% hit to your portfolio.
If your entire portfolio is made up of dividend paying stocks, but when your retired you are using those dividends as income, not growth.