Are Your Dividend Investments Making you at least 5% per year?

The goal for many is to have their investments paying them enough money to live off of, the goal for most people is to get at least $1 million saved so they can live off of the income generated from their $1 million dollars. Unless you’re a professional investor or business person, it’s never a good idea to be in debt, because debt is actually supposed to be something reserved for business people.

Consumer debt has become normalized, but if it was up to me, it would be abolished, because it’s a malinvestment, you shouldn’t be working a 9-5 job and then having some banker take money from your paycheck every month. There are several reasons why financial education is not in the public school systems, one of them is obviously because financial education will lead most people to understand how government debt ruins the lives of young people.

As we know, mental health is a serious problem, and most stress is caused by money, well, if we know this as a civilization, why don’t we teach financial education in public schools? Well, the answer is simple, if there was financial education in the schools, government debt would be abolished or heavily scrutinized, we’re now in an era in which a government having trillions of dollars in debt is normal?

The other reason to avoid teaching people financial education is that wealthy people are harder to control, wealthy people tend to be more entrepreneurial, and if the politicians can’t weaponize people’s financial ignorance, that government will either have to deliver on its promises or explain the numbers of their spending plans in DETAIL.

When you’re a dividend investor, of course, you might take a portion of your winnings and buy something tangible like Gold and Silver, but the idea is to use a portion of the money you get in dividends to diversify your portfolio of dividend-paying stocks. Sure REITS are good, but so is energy and other dividend-paying sectors, there is of course the reality is that some companies will go bust or stop paying dividends, so this is why you want to be diversified.

Now, not every stock you buy has to pay 5% annually, some stocks might appreciate in value and you sell a part of them and purchase another stock you believe will go up in value, but your goal is to have a steady stream of cash flow. Real estate for cash flow is good, but I still prefer owning real estate outright, I’m not a professional real estate investor, I don’t like being in debt and I don’t like having to adhere to all the government regulations.

I’d much rather be invested in a company that’s cash-flow positive and it’s burdened with rental controls and other government regulations, so I typically only invest in paper real estate and allow the experts to do my work for me. Some REITS go bad and I do believe there’s a bubble, but my Gold and Silver investments offset my real estate investments, whenever real estate goes down, some of the other dividend-paying investments go up, it’s important you use common sense when you invest in real estate, the reality of the situation is that there’s a real estate bubble and if it pops it’s actually a good thing for small businesses because if real estate prices drop, the cost of doing business drops also.

So when you understand basic fundamentals of investing it’s not hard to make at least 5% annually from your investments, which means that if you can save $1 million dollars you can easily be making $50,000 per year in dividends, depending on where you live to check how much of that you have to pay in taxes and if depending on if you have no debt, you can live a very comfortable life.