A Curious Email Teaches Us About Dividend-Paying Stocks

Share this episode with a friend:

Today’s Question:

Join us as we unpack the market’s movement in 2019, learn about the Russell 2000 Index, and take a question from Roger on dividend-paying stocks.

In The News:

[1:45]Goldman Sachs Economists Predict Slim Chance Of Market Correction

  • Nathan teases and points out that Goldman Sachs economists are incentivized to get people to invest in Goldman Sachs products.
  • Goldman Sachs economists aren’t necessarily wrong, but they’re biased, and it’s truly impossible to predict the market.
  • Invest for the long-term. The market can still perform well in a recession.

The Financial Dictionary:

[6:06]The Word Of The Day Is “Russell 2000”

  • The Russell 2000 Index tells us how the 2000 smallest companies in the United States are performing. These are called “small cap companies.”
  • We focus on the S&P 500 and the Dow Jones Industrial Average, and we forget about the smaller players.
  • Diversify. Own large cap, mid-cap, and small cap companies.

The Mailbag:

[9:07]Roger Asks About Dividend-Paying Stocks

  • Roger owns an after-tax account with investments that pay dividends each year. However, those dividends are taxed, and he’s concerned about that.
  • Nathan explains how it doesn’t matter where your investment returns originate.
  • Nathan suggests Roger not focus on high-dividend paying stocks.
  • Retirees need to generate income, and sometimes, they focus so much on doing so that they lose diversification.

A Point Of Wisdom:

Additional Resources:

Schedule A Meeting

Download Your Retirement Rescue Toolkit Learn More About Our Firm

Your Guide:

Nathan O’Bryant – Contact

Share this episode with a friend: