I've been changing a bit too as I both gain more experience and age ... I've never been into stop loss orders or trailing stops. I have no intention of getting into stop loss orders (but maybe-maybe I will do some trailing stops in the future).The major change for me is that I am thinking more and more about the importance of dividends. I now think of investing not so much as creating an investment portfolio of XYZ value, that I will live off in retirement, but as creating an income stream of dividends that I will be able to use (along with other income streams -- mainly social security and a pension) that I will live off in retirement.The first approach seems to assume that an investor will need to accumulate a portfolio of a certain value (your "number") that you will then live off by selling a fraction of it over your retirement years. The danger to be avoided is one in which you outlive your money; and that is to be met by using a Safe Rate of Withdrawal from your investment portfolio. Absolute perfection in this would be to have your portfolio exhausted right at the very time of your death; otherwise, the thought is that you might have saved and denied yourself too much in your earlier years. Next best (and, in fact preferable if you intend to leave something for your heirs) would be to still have a sizable portfolio when you die. But the danger, again, would be to outlive your money.The dividends-as-income-stream approach, OTOH, aims to build up a portfolio whose dividends will suffice to provide your needed income stream in retirement. Steady dividend-growers and stable stocks (in boring businesses that won't change much) are ideal here. Such stocks won't be sold -- in fact, they shouldn't be sold, since they will be needed to provide the income stream.culcha
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra