INVESTMENT PITFALLS - Avoiding Common Investment Mistakes
1). Letting our EGOS get in our way - our emotion, our pride, refuse to take in advice. Market knows best why some stocks are trading at rock bottom price.
2). Over-trading – selling the winners and keeping the losers. Jump from stock to stock. Each time their stocks price goes up these people will get excited. They will only make small dollars and miss out the big dollars. Reason; the winners are the one that will perform, the eventual multi-baggers.
3). Momentum Investing - chasing after penny stocks when they suddenly burst back to life – Remember, the BB are the one behind the action. Do you thing BB are fool?
4). Noise trading - confused between the false signals sent out by a stock's trading pattern & the overall market trend. Investors have poor timing, follow trends, over-react to good & bad news.
5). Growth Investing - buying out-of-favour stocks with low price-to-earnings and price-to- book ratios
PERPETUAL DIVIDEND RAISER - MAKE MORE MONEY AS COMPARE TO ANNUITY
Let's say you buy a portfolio of quality Perpetual Dividend Raisers with an average yield of 4% and average annual dividend growth of 10%.
If the companies continue to raise the dividend by an average of 10% every year, as they have over the past 10 years, and the market generates its historical average return, a $100,000 initial investment will be worth $317,775 in 10 years.
At age of 55 when buy a deferred annuity for $100,000. At age of 65 the paid out is about $600 monthly for the rest of your life. When you pass away the annuity will end without any residue value.
As for the Perpetual Dividend Raisers in ten year’s time you need the income stream, you simply stop reinvesting and instead collect the $12,700 per year in dividend income or $1,060 monthly as compare to $600 monthly for annuity. That is likely almost 50% more than you'd receive if you invested the same $100,000 in a deferred annuity.
Investing in Perpetual Dividend Raisers when you pass away, your nest egg will go to your heirs instead of an insurance company's bottom line. Furthermore, you'll make more money than with an annuity, and, importantly, your assets will stay in your family.
