You Need Five Dividend Investments That Will Be Untouchable Your Entire Life

Among the readers with whom I have had private conversations, the biggest investing regrets have generally been one of two things:

(1)    Either the person invested extensively in bank stocks prior to the financial crisis of 2008-2009 that wiped out 75-95% of the value of many supposedly safe financial stocks, or:

(2)    They owned some high-quality stocks that they had to sell to meet an inevitable need that crops up over the course of an investing lifetime.

It is the second point that I want to discuss.

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What Can You Do Right Now To Get Your Hands On $1,000 Worth of Exxon Mobil?

One of the best things that Calvin Coolidge, the 30th President of the United States, ever said was this: “If we judge ourselves only by our aspirations and everyone else only by their conduct, we shall soon reach a very false conclusion.”

What I find so appealing about that Calvin Coolidge quote is that it completely cuts through any tendency we might have to give ourselves credit for things we have not yet accomplished—the exercise not yet run, the book not yet written, the degree not yet completed, and so on.

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Social Security Checks Prove That Most Americans Do Not Understand Money

Here in the Midwest, it is a gorgeous Sunday afternoon, and I would completely understand if you have better things to do with your time than read this article, so I’ll boil it down for you in one sentence: If you want to smarter than almost anyone you encounter on the street, and more importantly, put yourself in the position to build wealth for the long haul by thinking in terms of purchasing power rather than superficial dollar amount changes.

Now for the five-minute version.

If you read Yahoo News headlines today (actually, right now), you will see an article titled “Bad News For Social Security.

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A United States Government Default Would Be An Excellent Buying Opportunity

As investors, we do not put together successful investing lives by getting world events to happen that we desire. Rather, we put together successful investing lives by reacting intelligently to the events that do happen.

Although I personally regard it as a low probability event, the upcoming issue that is dominating the global financial newswaves is the prospect of a potential United States government default on its debt.

The real issue there is that the United States will not be able to pay interest rates on its debt to creditors (this means both foreign entities like China’s vast stockpile of US government debt, as well as American corporations and individual investors that held US bonds), and this will conceivably lead to: a (temporary) crash in the United States dollar as it loses its historical credibility to meet its debt obligations in all instances, the dollar loses its status as the reserve currency as part of a panic response, the price of oil ceases to be tied to the US dollar, US interest rates spike to adjust for the new risk, and the major components of the S&P 500 experience declines of at least 15%. Those are the unfortunate effects that could be on the table if the United States does default.

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Money 101: The Allegory Of The Scorpion And The Frog

Before I launch into the substantive part of this article, read this almost Aesopian tale first:

One day, a scorpion looked around at the mountain where he lived and decided that he wanted a change. So he set out on a journey through the forests and hills. He climbed over rocks and under vines and kept going until he reached a river.

The river was wide and swift, and the scorpion stopped to reconsider the situation. He couldn’t see any way across. So he ran upriver and then checked downriver, all the while thinking that he might have to turn back.

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