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163 - Pros & Cons of Using Dividend Investing to Create Passive Income
Description
Scott and James discuss the pros and cons of using dividend investing to create passive income.
Planning Points Discussed
- Utilizing Time Efficiently
- Capital Appreciation
- Purchasing Power
- Other issues (IRAs, Inflation, Financial Goals, etc.)
Listener Question:
What is your stance on dividend investing, with the goal of reaching a point where one can live off of "passive" income from dividend ETFs? I have been reading a lot on the dividend subreddit where people are sharing their spreadsheets and screenshots of investments, and it seems like a very compelling strategy. What are the pros and cons of investing heavily in dividend ETFs with the hope of building a passive income stream?
Timestamps:
4:16 - Dividend Yield
7:27 - The Feeling Behind Dividends
10:19 - Dividends During Recessions
14:27 - Don't Just Focus On Dividends
18:52 - Total Return
21:12 - Dividend v. Capital Appreciation
LET'S CONNECT!
James
Scott
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