Build Your Own Income Fund

Written by The Dividend Guy on September 23, 2005

The idea behind dividend investing is building up a portfolio of stocks that is throwing off enough cash that you are able to live off of that cash without reducing your principle (most of the time). Easier said than done however. One article I came across proposes a strategy to recreate a monthly income mutual fund, without the high fees charged by the fund companies. Although the article was nothing new, I liked the authors suggestions to keep in mind when distributions are made - something I suspect many investors do not focus on.

Personally, I am not going to worry too much about this yet, but as I get closer to reaching my goal, I may begin to adjust my portfolio to ensure that my distributions are spread out throughout the year.


Recommended: ING DIRECT makes $aving money simple! Open your account online today and start earning 3.00% variable APY. No Fees and No Minimums!

del.icio.us| Digg| Furl| Reddit| Google| StumbleUpon| Technorati| Help|

2 Comments so far

  1. Khyron September 29, 2005 2:53 am

    This is a great! I loved this post and will reference it often. Too bad the amounts needed to pull this off are so steep.

  2. The Dividend Guy September 29, 2005 3:51 am

    That is a good point. If your brokerage fees are high, then this can be expensive. If you are going to go this route, make sure you are using a discount broker with low fees.

POST A COMMENT

If you would like to make a comment, please fill out the form below.

Name - (Required)

Email - (Required but not published)

Website - (Optional)

ENTER YOUR COMMENTS BELOW






Student Loan

www.financialwebring.com