Tuesday, April 22, 2014

Another Depressing Report From Schwab

"What Does Disinflation Mean for Bond Investors?"

It appears that investing in stocks -- and probably stocks that pay a reasonably consistent dividend -- is the only hope for retiring before I get really old.  If I could teach full-time, it would be worth considering, but I might as well start hiring leprechauns to do my lawn maintenance.

2 comments:

  1. There are some energy stocks that pay a very hefty dividend. One I know a little about is MEMP which is an oil and gas development company. They pay over 9% and they are profitable.

    I only mention MEMP because that is one I'm familiar with. I know there are others that are similar. Obviously, you should do your own due diligence.

    Good luck!

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  2. The problem is stocks aren't too attractive either at current price levels. The current dividend yield is only about 2% for the market as a whole and further price gains seem pretty iffy. High dividend stocks in particular are likely to take a hit (like bonds) if interest rates rise.

    You might be better off trying to figure out ways to cut your retirement expenses or supplement your income than looking for investment yields that just aren't reliably available at the moment.

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