I'm in my mid 50's as far as time horizon. I'm perhaps 70% invested in individual stocks/Reits that pay nice dividends. Remaining 30% is divided between index growth ETFs and managed funds.
With my relatively shorter horizon, I'm wondering how to invest future contributions. Build my dividend income or aim for Index growth? I'm leaning toward reversing the mix...30% to dividends and 70% to index ETFs
Fri Aug 05, 2016 3:11 am
ken-do-nim Full Member
Cash: $ 15.40
Joined: 08 Sep 2016
Location: Mansfield, MA
You are perhaps a decade away from retirement, so your appetite for risk in the market isn't quite what it was. But risk vs. stability isn't exactly growth vs. dividends. There are some high-paying dividend equities that are in fact quite risky.
Anyway, if your retirement plan is to be 100% converted over to dividend paying equities and live off the dividends, you don't actually have to be in those dividend equities until you retire. On the other hand, if you want to cut-down to part-time hours, then the supplemental dividend income will be helpful now.