Will Rogers once wrote in his autobiography: “The fellow that can only see a week ahead is always the popular fellow, for he is looking with the crowd. But the one that can see years ahead, he has a telescope but he can’t make anybody else believe that he has it.”
I was recently reviewing old Federal Reserve data from the 1960s that provided data points noting the rising nature of America’s inflationary rate that hit a high of 14% in 1980. While those days are now distant memories for many (and perhaps half of the stock market participants of today have no recollection of them at all), it remains a historical truth … Read the rest of this article!
Generally speaking, it is wise to hold investments that pay out high streams of dividend income inside the confines of an IRA, so you can avoid those frictional taxes that take a tax bite out of each dividend payment and limits your compounding engine (though there is also wisdom in owning something like Starbucks in an IRA because IRAs have contribution limits and getting large capital gains inside the account can be useful, too).
Usually, the blue-chip stocks that are candidates for consideration are things like tobacco (Philip Morris International), telecom (AT&T), and oil (Royal Dutch Shell, BP, and sometimes Conoco). You don’t get an opportunity to diversify into the health-care field all … Read the rest of this article!