We can get befuddled by all the choices we must make. We can get paralyzed by the analysis we can do. Sometimes there are too many possible alternatives. This applies to investing as in all aspects of life.
When I first started on a path to investing, I was overwhelmed with the possibilities before me. Advertising seemed to present so many options, too many options. Which broker was good for me? Which investing method? Which stocks? Which bonds? Oil leases? Domestic or foreign? It was like I was being shouted at from all sides.
It took some time to get calm. In the mean time, I sought advice. But seeking advice has its own pitfalls. I did not want to be taken advantage of, so how do I get advice where the person giving advice does not use it to their advantage?
Many false starts and dead-end paths lead me to understand that I could not get a quick answer from others. I needed to plow ahead on my own, forging my own path.
Eventually I found the path I am on now. Dividend investing allows me to ignore all noise and advertising, all shouting and all hype. I may not have the flashiest porfolio nor the most spectacular, but it is mine and I am happy with it.
Comparisons and contrasts
We all know the relationship between bond prices and interest rates. As interest rates rise, bond prices fall. When interest rates fall, bond prices rise. This is the parallel relationship between growth and income.
To seek growth we sacrifice some income. To seek income, we sacrifice some growth.
In both cases (on the one hand, bond prices vs. interest rates, and on the other hand, growth vs. income), we need to choose what is important to us at the time. A younger person usually gravitates more to growth, and a retired person likely gravitates more to income.
Where are you? Let me know here.
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