To DRIP or Not to DRIP - 13 Strategies for Picking Winning Stocks
Money and Financial Issues Leading Cause of Stress
Although it’s true that in a well-balanced life finance comes after faith, family, friends, fitness, and fun, having a solid financial footing relieves the pressure on all the other elements. Building a wealth portfolio is one of the most important things most people do in their lifetime.
According to the American Psychological Association, Seventy-five percent of Americans said money was their biggest cause of stress. Stress is the cause of many chronic illnesses and disagreements over money are the leading cause of divorce. Investment strategies that rely on hunches and subscribe to "get rich quick" mentality almost always add stress to the situation. We are proponents of a "get rich slow" approach and believe that over time, you will reap far better returns by following a disciplined approach to investing and stock selection.
Create a Wealth Portfolio for Current and Future Expenses
Besides providing income for retirement years, a properly designed wealth portfolio provides funds for college, family vacations, unexpected expenses and provides a safety net during difficult times while a family is growing together. Knowing there are funds available for whatever lies ahead takes much of the stress out of raising a family. Managed properly, a good wealth portfolio covers both current and future expenses.
Step Number One in Building Wealth over Time is to DRIP
Before launching into the other 12 strategies for picking winning stocks, let’s take a hard look at a decades old strategy called DRIP (Dividend Reinvestment Program). When you open a DRIP account with a company, they allow you to buy stock directly from them eliminating brokerage fees.
Most DRIP plans require you to buy a certain dollar amount of stock each month or quarter, so you take advantage of both dollar cost averaging and dividend income at the same time.
According to the DRIP Investor, and many others, the ...