Dollar-Cost Averaging into Dividends While We Wait: A Measured Approach
They say penny-pinching investors transform into big spenders when it comes to the stock market. Maybe there's some truth to that! But hey, who can blame us? The allure of building wealth can be intoxicating.
While some go all-in, I'm taking a more measured approach. Think of it as a delicious, slow-roasted investment strategy. Here's the recipe:
20% Allocation: Every month, I dedicate a healthy 20% of my income to stock market investments. This consistency, known as dollar-cost averaging, helps me avoid the perils of market timing.
Focus on Dividends: My portfolio leans heavily on dividend-paying stocks like $3M(MMM)$,$SPDR S&P 500 ETF Trust(SPY)$ and $The Kraft Heinz Company(KHC)$. These companies reward me with regular payouts, providing a nice drip, drip, drip of income into my account.
Building a Cash Reserve: Right now, with a potential downturn looming on the horizon, I'm also building a sizable cash reserve of about 50% of my monthly income. This safety net ensures I have dry powder ready to seize opportunities that might arise during a market correction.
This strategy might not be all flash and fireworks, but it allows me to steadily grow my wealth while playing it relatively safe. Remember, slow and steady wins the investment race!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
