Skip to main content
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.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.