But Some Doctors Ask – Why All the Hype?
By David K. Luke MIM CMP™ candidate [www.CertifiedMedicalPlanner.com]
In an effort to help the US economy recover, the Federal Reserve has lowered interest rates to historically low levels. Furthermore, the Fed has announced its intent to keep interest rates low until 2014. Classic income-producing investments such as savings accounts and certificates of deposit pay next to nothing.
Borrowing Good – Saving Bad!
Borrowers are being rewarded, but savers are being punished. Low interest rates may have spurred the economy somewhat, but they have been devastating for retired people who have a low tolerance for risk. Physicians, other investors and their advisors are turning toward alternatives that pay higher returns, but these vehicles necessarily carry more risk. Among these alternatives, some investors are considering the purchase of stocks that pay reliable dividends.
Assessment
But, is this an appropriate strategy for mature doctors and similar retirees? What are the potential benefits and drawbacks?
Conclusion
Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.
Link: http://feeds.feedburner.com/HealthcareFinancialsthePostForcxos
Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com
OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:
- DICTIONARIES: http://www.springerpub.com/Search/marcinko
- PHYSICIANS: www.MedicalBusinessAdvisors.com
- PRACTICES: www.BusinessofMedicalPractice.com
- HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
- CLINICS: http://www.crcpress.com/product/isbn/9781439879900
- ADVISORS: www.CertifiedMedicalPlanner.org
- BLOG: www.MedicalExecutivePost.com
- FINANCE:Financial Planning for Physicians and Advisors
- INSURANCE:Risk Management and Insurance Strategies for Physicians and Advisors
Filed under: Alternative Investments, Investing, Retirement and Benefits | Tagged: Alternative Investments, CMP, david k. luke, Federal Reserve, Investing, low interest rates, retirement planning, Update on Dividend-Paying Stocks, www.certifiedmedicalplanner.com, www.NetWorthAdvice.com |
Tax Reform and Dividend ETFs
Despite their recent success, dividend ETFs could be setting up investors for a colossal disappointment if a recent proposal from the Obama administration to significantly hike the tax on dividends becomes reality.
http://www.fa-mag.com/fa-news/10272-tax-reform-and-dividend-etfs-cause-for-concern.html
Reggie
LikeLike
Dividend Stocks Could Tumble if Bush Tax Cuts Aren’t Renewed
Mr. Luke – As Congress and the White House head toward another battle over extending the Bush-era tax cuts, a trade association representing utility companies is warning that investors could be in for a major hit if the rates for qualified dividends revert to their pre-2003 levels, even if the only rates that move are those for the wealthiest Americans.
http://www.financial-planning.com/news/dividend-stocks-could-tumble-if-bush-tax-cuts-are-not-renewed-2679821-1.html?ET=financialplanning:e8919:2248552a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=FP_Daily__071312
Any more thoughts?
Dr. Beverly
LikeLike
5 ultimate dividend stocks
Reggie and readers … These stocks have juicy payouts that are long-lasting and rising.
http://money.msn.com/top-stocks/post.aspx?post=dc10da66-bfca-4aab-acb1-28a0828ebe37
Deborah
LikeLike
Income investing for a lean world
http://money.msn.com/investing/income-investing-for-a-lean-world
With low returns likely for years ahead, dividends become critical.
Byron
LikeLike
Why Health Reforms Won’t Kill Health Stocks
David – Fidelity managers think that the undervalued healthcare sector could hold bargains, and still have potential for growth.
http://money.usnews.com/money/personal-finance/mutual-funds/articles/2013/02/15/why-health-reforms-wont-kill-health-stocks
Any thoughts?
Adam
LikeLike
Stay in the market
History says stick with stocks. Why?
Over the past 87 years, big-company stocks have earned investors an annualized 10%.
http://money.msn.com/investing/history-says-stick-with-stocks
Dr. Burton
LikeLike
Stock Buybacks vs. Dividends
[Which Has Better Payoff?]
Rather than chasing company payouts, can doctor-investors get a better tax advantages with a strategy based on stock buybacks?
http://www.financial-planning.com/fp_issues/43_7/which-has-better-payoff-stock-buybacks-or-dividends-2685424-1.html?ET=financialplanning:e14251:86235a:&st=email&utm_source=editorial&utm_medium=email&utm_campaign=fp_alert_071513
Reggie
LikeLike
On Dividends
David-From 1991 to 2012, the average annual returns of dividend-paying stocks and the global stock market were both 9.1 percent.
During the same period, stocks not paying dividends had an average annual return of 11.1 percent, although the higher returns came with greater volatility.
Dr. Janey
LikeLike
19 stocks for big dividends and buybacks
Dr. Janey – Are you looking for yield? Think beyond dividends. Goldman Sachs expects cash returns of 14% or more from these companies as they buy back outstanding shares.
http://money.msn.com/investing/19-stocks-for-big-dividends-and-buybacks
Paul
LikeLike
Tax Planning Tips for Dividend Stocks
Stocks with significant yields can offer upside potential plus tax advantages at all ages and income levels.
http://www.financial-planning.com/30-days-30-ways/tax-planning-tips-for-dividend-stocks-2690143-1.html?utm_campaign=30%20days%2030%20ways-aug%2013%202014&utm_medium=email&utm_source=newsletter&ET=financialplanning%3Ae2934551%3A86235a%3A&st=email
Dr. Burton
LikeLike