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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Triffin who wrote (4904)	6/10/2010 1:52:30 PM
From: chowder	Read Replies (1) \| Respond to of 34328

I agree with your scenarios. I'm applying both.

To: Triffin who wrote (4904)	6/11/2010 3:13:59 AM
From: Steve Felix	Respond to of 34328

In this day and age of everything seeming to have a fee attached, brokerages reinvesting for shareholders is a real boon, especially to young investors. With my daughters Roth in the early stages with only 13k invested, to me it is a no brainer. Adding JNJ and CLX with her 5k this year cost .4% of her contribution. .13% of her total account value. This is why I don't see why people buy funds or ETFs. Her only costs come from two trades because she added money. If she did nothing, it would cost nothing. Funds don't care if you add money or not. They want their cut. Even Vanguard can't keep up. Fund / ETF fees: Equity Income .36% Dividend Growth .38% High Dividend Yield Index .35 ETF .20 Dividend Appreciation .35 ETF .23 Per Vanguard, 10k invested in the lowest cost ETF, High Yield Dividend Index over ten years will cost $508. The Equity Income Fund would cost $907. My daughter can forget she invested anything for thirty years, have all dividends reinvested, and then withdraw the money and never pay a fee. Anyone who has a choice, who compounds the funds costs over thirty years, shouldn't have a hard time deciding to go with individual stocks. Especially for young people.