Subscribe: Spotify, Apple Podcasts, Google Podcasts
It’s only fair that dividend investors close to retirement want to grow their returns. There are ways you can do this without putting your retirement at risk. There are also better options than gold to protect your income from inflation.
On Thursday May 20ththI’m going to host a free webinar that will teach you how to optimize your portfolio for retirement and how to withdraw funds.
Click here now to register for the webinar
(Over 13,000 investors have seen my webinars. Secure your place!)
After this webinar you should be able to:
- Protect Your retirement capital
- Improve Portfolio return without increasing risk
- Create a safe and reliable income from your portfolio
Here are the full details:
- The webinar is on Thursday, May 20 at 1 p.m. ET.
- It’s 100% free with no strings attached.
- The presentation takes about 50 minutes.
- I’ll stay an hour to answer all of your questions.
- I will make the handouts available to all live attendees.
- A free repeat link will be sent to all registered participants.
Register now and watch the webinar as you wish.
Prepare your questions. This webinar is about 50 minutes and I’ll answer all of your questions about stocks, strategies, and the economy afterwards.
You will learn
- In this way you can increase your yield without increasing your risk.
- Which industries are more generous to retirees than others?
- Why ranking your stocks before retirement is critical, and how it will make your decisions easier.
- Ways to replace low-yielding stocks.
- How can an investor protect their portfolio from inflation?
- Why dividend growth is a better option than gold as a shield against inflation.
You can check out the episodes about the REITs, Utilities and Healthcare sectors here:
Below is the graph on gold and inflation that we discussed in the episode, along with Mike’s comments.
When looking for ways to protect your portfolio from inflation, you are likely to come across gold / precious metals or bitcoin items. In fact, there is no such thing as a bulletproof way to protect your money from inflation. Not even gold. Did you know that gold has never fully recovered from its peak in the 1980s, considering inflation? I just found this Morning Star gem that shows how far gold is from being a good hedge against inflation.
Below is a graph that shows how commodities (blue), real estate (red), stocks (orange) and gold (yellow) have performed over the last three critical periods of inflation. Schocker: Gold is the worst insurance of all! It worked tremendously well during an episode of stagflation (inflation mixed with a recession) but seemed like a dud for regular inflation periods.
The article suggests commodities that have the best correlation (e.g. protection) with inflation. However, you need to be prepared for a wild ride as this is also the most volatile asset class. Real estate usually does well as landlords tend to pass inflationary pressures on to their tenants. After all, there isn’t a great correlation between stocks and inflation. Long-term returns on stocks, however, tend to outperform all asset classes. I think this is how you can protect your portfolio from inflation, right?
I know a way not to worry about inflation. It’s called investing dividend growth. By choosing companies that can increase their dividends year after year, you are protecting your retirement income from inflation. In 2020, my portfolio dividend payments increased 7.7%. That’s more than enough to cover inflation.
If I don’t know what inflation will look like in the future, I also know that capitalism will not go away. Great companies that make great products or services will keep expanding and paying dividends. If you want to fight inflation, I think this is a classic situation where “attack is the best defense”. Gold has failed many investors, Bitcoin has only proven one thing (it’s very volatile), but large dividend producers have always done well over the long term. I bet I will retire too!
It’s a simple answer to a complicated question. Sometimes the best strategy is to keep things simple.