I recently wrote about passive income, how to start a dividend portfolio with only 5000$ and I’ve had a few discussions with readers since then. Many have decided to finally go ahead but others have all kinds of reasons why they have not started to build their portfolio yet. I found it perhaps a bit frustrating as I think it’s critical to prepare for retirement early. There are many other types of portfolios of course but a dividend portfolio is one of the very attractive ones. I decided to discuss the main reasons that were given to me to explain why investors had not started yet.
No one will be surprised to see this one and I wouldn’t be surprised to hear that this is top reason. Most of us, probably almost of all us have this wonderful tendancy to postpone. Why do something today when it can be done tomorrow right? I’m certainly the first to say that. The problem is that this specific task can be postponed for a very very long time. When you need to hand in a report, homework or any other assignment, there is usually a timeline that limits how much you can postpone it. But with investing, it can be done for a very long time.
It also is a lot easier than most of us think. There only a few steps involved and once you have a broker, advisor or your own trading account, you are ready to go. If this is the reason that is stopping you, go back to our post about how to get started and please take action. The most important investment decision you will ever take is not on a specific stock but on when you will get started.
This is another false one. I wrote my article with an example of 5000$ but in reality you could start with less. If you are able to buy a large screen tv or a car, you can pay for the your retirement or passive income fund. Even the amount that you are able to save each week or each month can stary off very little. If you can start at 5$ per week, start there and increase every year as much as possible. It does add up!
No time?? If you did not have time to do your laundry, get shaved or take care of your lawn, that is one thing. But we are talking about your future here right? So take the time to set things up. Then, when you make a trade (infrequently especially at the start), take an hour to look up the different possibilities. And finally four times per year, you will take a look at your portfolio, does that sound so bad?
Right! I can understand how making regular income every month, no matter if you are working, if you are in another country, sick in bed, etc. Oh no actually, I don’t get it. At some point, you will need to start living off of passive income when you become older and unable to work as hard. So the decision is not about having passive income or not but rather how much you will have and if you will require help or depend on the government or your pension plan fulfilling its promises.
This could be a valid excuse. We each have our investing philosophies and I think that a retirement account is a must but there are many different ways to get it done. A dividend portfolio is certainly one way to do just that but there are others. For example, if my company, M35, was not active in the business of buying and selling websites, I would certainly be putting more money into my own dividend portfolio. And over time that is exactly what will happen.
This is the easiest! Simply check our “How to” guide and ask any questions you might have!
My question to you is! If you have been postponing the start of your dividend portfolio, why? I would love to hear what is holding you back from starting this critical step!