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To: Triffin who wrote (489)	3/27/2017 4:53:57 PM
From: Triffin	Read Replies (1) of 868

BC: TIME IN THE MARKET .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. It's all about income replacement and how best to get there .. Historically, dividend paying stocks have returned a little more than 7% annually over the last 100 years .. 1) Use a tax deferred or tax sheltered account during the accumulation phase ( Roth ) 2) Buy stocks that pay dividends that have a history of raising them on at least an annual basis 3) Make sure that the current yield is at least 2% at your time of investment 4) Use Zero Coupon Treasuries as your investing "benchmark" Anytime the market will let you buy 20 year ( time to maturity ) US Treasury Zero Coupon Bonds for 25% of face value ( when you can buy a $1000.00 bond for $250.00 or less ) you will equal the average return from dividend paying stocks over the same period of time with less risk .. In other words, a dividend paying stock that raises it's dividend by at least 5% per year and whose price grows by at least 5% per year will return 4X your initial investment over 20 years provided that the current yield at the time of purchase was at least 2% .. This is the same return ( +7% CAGR ) that 20 year US Treasury Zero Coupon Bonds will return over the same 20 year period assuming you bought them when available at $250.00 per $1000.00 face value .. Remember the "secret" to compounding wealth is "Time in the Market" vs "Timing the Market" NOW is always the best time to start ..

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