Actual Dividend Growth Portfolio

[JaxRed]

From the perspective of my retirement plan I ask ... what losses?

We can't eat with the total value of our portfolios - we have to convert that to purchasing power. I already know how I am going to do that - my investments are pumping out dividend income (cash flows). For now, those cash flows are busy buying more retirement income. At some point I will be retired and will be using my dividend income (coupled with a pension, social security, etc.) to pay bills, get groceries, and go on trips.

Had I already been retired that ~25% drop in the market (and my portfolios) would have been just a news story. This event provided a data point for me - my dividend income was essentially unaffected. The stocks I have identified and purchased were able to keep on paying (and some raising) dividends through very difficult times.

No loss of income. I'd say that is comforting.

GL

Great post. My thinking exactly

[gonelong]

Sure.

But to use your phrase “Your overall balance drops through the floor.” is never a comforting site for me. If asset prices decrease too drastically and/or for too long, dividends will get cut (not by everyone of course). I’m in it long term and haven’t panicked (kept investing), but being honest when the market lost 30-40% it puts a lump in my throat. History says the market will always bounce back, but it seems like we are in some strange “end stage capitalism” times where nothing would surprise me. Like I said, I’m bullish long term, but I don’t take anything for granted.

And I get it, different strokes....

I hear you. I personally could not stomach watching the huge swings of my overall number. I *had* to find another way to go about it.

If the system tanks, I am not sure there is anywhere safe, so I am putting my head in the sand and pressing forward. I didn't get started until I was 26 and I started from a place of genuine financial ignorance so I am still making up for lost time. I'd like to eventually own some hard assets (Land, etc.), which might help buffer form a real deep crisis, but that is not in the near term.

Good luck out there.