No. of Recommendations: 0
... My strategy was to have her invested in 5 well known and trusted Dividend paying stocks...

Don't kid yourself; even a stock with a good dividend still has lots of risks.

My Mom tried this with the same logic and bought GE as a "safe" stock when it was in the 30's. It got as low as ten and is now around 18.5. GE may have been a special case but all stocks have risks and so many people have been chasing higher returns so you may be risking overpaying for the stock. A 3% dividend for a stock may look great to a lot of people now, but if you can get 5% on a government bond in a few years, that same stock will look much less attractive.

....I consider myself an amateur investor. ....

One probelm with helping her pick stocks is that you could do everything right and the market could still go down 40% which would make things very awkward for both of you. Something like a retirement income fund might be a better choice and you be managed by professionals.

https://personal.vanguard.com/us/funds/snapshot?FundId=0308&...

Greg
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