Sure, stocks carry plenty of risk. But that risk is known. What’s more, it’s easily counteracted with inverse ETFs.
On the other hand, many so-called “safe” investments come with all kinds of hidden risks.
Let’s start with one of the most blatant examples — the fact that America’s oldest money market fund recently told its investors, “NO WITHDRAWALS.”
That was the first time in history that a large money market fund was forced to freeze out its customers from their deposits.
And what were investors getting for that unadvertised risk? An average annual return of 2.8%.
That’s not even enough to keep pace with rising costs for gasoline, health-care, food, and other daily necessities!
Moreover, in a money market fund, your principal never grows. If you’re lucky, you will end up with exactly what you started with — that’s the best result you can hope for. And because of inflation, what you started with will buy you a lot less than it does today.
You have the exact same problem with CDs and bonds. You take on risk, get low yields, and the value of the principal will get eaten away by inflation. Money funds, bonds, and CDs give you zero growth in your nest egg … they add nothing to your retirement fund … your child’s college fund … or your “just let me enjoy life” fund. They’re a dead end precisely when you need an open highway.
In contrast, plenty of dividend stocks boast rising payments year after year.
Learn more about why dividend payments are better income investments than bonds today.
To your dividend investing success,
InvestingInDividends.com
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