Comments on: Quizzes and Calculators – Personal Finance Help

By: Brandon

Brandon — Thu, 31 Dec 2009 20:02:44 +0000

Hey Luigi,

Thanks for the comment. We look forward to providing you with more excellent information

Cheers!

brandon

By: Luigi Fulk

Luigi Fulk — Thu, 31 Dec 2009 04:46:40 +0000

Thank you so much, there aren’t enough posts on this… or at least i cant find them. I am turning into such a blog nut, I just cant get enough and this is such an important topic… i’ll be sure to write something about your site

By: Brandon

Brandon — Fri, 11 Dec 2009 23:27:48 +0000

Hey David,

Thanks for the comment.

Dividends are truly a great investment. Though they do not guarantee that they will always be there (A few of the companies I owned lowered their dividends: Citigroup etc.) they do offer a chance to get some good passive income.

Another great strategy is to hedge your dividend by trading options. Specifically buying puts on the stock you own. If the stock goes down then you get the coupon premium plus the dividend. Truly a win-win.

If you want to read a great book get: Stop working, by Derek Foster. This is written by a guy in Canada who retired at the age of 34 buy living off of dividends. Pretty cool.

Cheers!

Brandon

By: MBAbriefs

MBAbriefs — Wed, 09 Dec 2009 14:10:48 +0000

Excellent post! I think a lot people don’t understand these finance basics and that’s what gets them in financial trouble. This would be a good topic to revisit periodically with new questions. You mentioned assets so liabilities would be a good future question.

Dividend stocks are a great investment. They don’t usually get you huge short term returns but your (almost) always guaranteed to make money from the dividends. This is also a good indicator of a financially sound company.

Keep up the good work!
- David