Comments on: Investor Profiles

By: Ron

Ron — Mon, 26 May 2008 04:47:49 +0000

What derek failed to point out is that you completely missed the compounding, which is what accounts for aboutm 50% of the income. Declaring an S&P return is an incredibly over simplified analyses, and hardly relevant.

Compounding the dividend payments into dollar cost averaging in DRIP is the key. The math works.

Cheers,

Ron Davies Cd, MBA, PSP

By: Derek Foster

Derek Foster — Fri, 25 Nov 2005 16:46:09 +0000

But what if your yield was 6%? This is very achievable with a mix of dividend stocks and income trusts. Although $24,000/year sounds like so little, once you stop working, you don’t have to pay CPP, EI, union dues, transportation expenses, RRSP contributions, ….. I’ve found 24K in retirement is like earning more than 60K while working. Wait patiently – buy quality then it’s cheap. Personally I bough Riocan when it was $9/share – now paying me over 14% on my original investment. Royal Bank I bought at $60 one year ago – now giving me over 4% (and rising).

It’s not an overnight solution – but it’s a lot easier than trying to sock $1-2 million into your RRSPs and watching the stock market while biting your nails. With my strategy, even a repeat of 1929 would not derail my retirement!

Cheers,
Derek

By: Canadian Capitalist

Canadian Capitalist — Fri, 25 Nov 2005 01:11:53 +0000

Thanks for your comments Derek. Congratulations of retiring at 34! I really believe dividend growth investing is a great way to invest. Let's say I have a portfolio of $400,000 (as noted in the story). If the current yield is 4%, it is hardly enough for me to retire on. BTW, I really liked your book as I noted in my review.

By: Derek Foster

Derek Foster — Thu, 24 Nov 2005 23:17:36 +0000

Just curious as to why you think my investing strategy would not work for you? It is what I followed to retire at 34.

Cheers,
Derek Foster (author STOP WORKING:Here’s How You Can!)