June 8, 2016

Get Rich with Dividends


The strategy for investing that Mr. Lichtenfeld lays out is one that either the young earner or older retiree can use to keep and increase their wealth. Of course the earlier the start, the greater the payoff.

Stocks and bonds are the investments that we hear about most often. The author explains their differences, along with their pros and cons. We have all heard of the individual who invested in a stock that suddenly made them a millionaire, but as Lichtenfeld points out, they are few and an investor is just as likely to lose everything. He explains that for some, the idea is simply to buy a stock at a low price, then sell high.

Lichtenfeld’s plan, however, uses what he calls ‘dividend aristocrats’ or blue chip stocks. These are stocks that may not increase in value, but pay out a consistent dividend to their shareholders. He goes on to explain how reinvesting your dividend grows your worth without your having to work too hard.

There is an entire chapter on what he refers to his ’10-11-12 system’ that he claims, “is designed so that in ten years, the investor will be generating 11% yields and will have averaged 12% annual returns on his or her portfolio.”

He spends much of the book describing why companies have and raise dividends, possible tax savings, how to set up a portfolio, direct purchase plans, foreign stocks and taxes. While his is not an overnight solution, it is nice to think that starting at age sixty-five, by seventy-five you would have another good source of income to draw on or leave as part of your estate.

This book and others that deal with handling finances in retirement are available in the ATA library for use by ARTA members. These books are selected and purchased by the Pension and Financial Advisory Committee on behalf of ARTA.

Get Rich with Dividends: A Proven System for Earning Double-Digit Returns
By Marc Lichtenfeld
Wiley, 2015 (Second edition)
Hardcover, 240 pages
Available for Kindle and Kobo
and in the ATA Library.