I have my retirement nest egg invested in mutual funds. Most of the funds are growth funds, where I was willing not to receive dividends in hopes that the value of the fund will increase over time. Any dividends I did receive from a fund would be used to buy more shares in the fund. The risk in doing this is that sometimes the value of the fund would go down, but that was a risk I was willing to take, because I was investing for the long run, and over the long run the odds were that the value would go up.
Now that I’m over 65, I should change my strategy and invest in income funds, where the value of the investment remains (more or less) constant and I get paid a dividend. The idea is that I am willing to forgo the growth in favor of the cash dividend.
So, at some point in the future, I’ll be doing that. Wish me luck.
Stream of Consciousness Saturday is brought to you each week by Linda Hill and this station. Now a word about Busch Bavarian Beer. The late one is still a great one!