Why you haven’t started building your passive income portfolio yet

By: ispeculatornew
Date posted: 07.14.2010 (4:00 am) | Write a Comment  (11 Comments)

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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.

-Not enough money

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

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?

-You do not want passive income

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.

-Investing elsewhere

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.

-Do not know where to start

This is the easiest! Simply check our “How to” guide and ask any questions you might have!

-Any others?

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!

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  1. Comment by Sophie — July 14, 2010 @ 7:09 am

    lol that’s pretty neat!! I love the cartoons hehe I would say I am currently in the “no time” and “do not know where to start” 🙂 I’ll let you know where I’d be in the process of building my own dividend portfolio!!

  2. Comment by The Financial Blogger — July 14, 2010 @ 7:38 am

    I think that the biggest reason why people don’t start right away is procrastination!

    most people say that:
    – they want a promotion
    – they need to lose weight
    – they need to start investing
    – they need, they want, they… don’t do anything for it!

  3. Comment by Craig — July 14, 2010 @ 9:15 am

    The lack of faith in the stock market can also be a reason why people are tempted but resigned to not invest their money. By the fear of losing money, some people rather keep their money in their bank account.

  4. Comment by stephen — July 14, 2010 @ 1:42 pm

    Some people might feel they are too old for it. I went for it because I really want it but I feel I’m a bit late to the party. I wish I knew about this twenty years ago or even ten years ago.

  5. Comment by IS — July 14, 2010 @ 8:14 pm

    @Sophie – Haha, yep I think they tell the entire story. After reading this post and rethinking about it, any chance you’d now give it a go?

    @TFB – No doubt, that is often what stops me. But personal finances are too important for that really.

    @Craig – Absolutely.. but at the same time, they are “losing” even more money over the long term by not investing in my opinion

    @stephen – Never too late, you are starting and 10-20 years from now you will be very thankful that you did!

  6. Comment by The Passive Income Earner — July 14, 2010 @ 9:53 pm

    Most young people where I work think they can beet the market. I often hear these stock around the coffee machine (RIM, Apple, Baidu, Google, Berkshire (not a bad one for long term) and the list goes on). The pattern here is that I am in the technology industry and people stick to what they know.

    Many others don’t even invest, let alone understand what dividends are. They tend to be aware of what mutual funds are and oddly enough RRSP = Mutual Funds for many. There is definitely a lack of education around finance.

    As for me, dividends have always been in my mind. I was slow to start because I wanted to be able to DRiP shares to get the compound growth. I only discover the ability to DRIP partial shares with Transfer Agents such as Computershare and since then I have 6 companies setup each with 1 share to start with. Two more are on the way and I am considering a third one. All of them accepting little amounts with no fees! It’s a beauty.

  7. Comment by The Passive Income Earner — July 14, 2010 @ 10:11 pm

    By the way, I own RIM. I have been in and out many times and the same with Apple. It’s a small part of my portfolio though and not a retirement plan.

  8. Comment by IS — July 15, 2010 @ 4:40 am

    @The Passive Income Earner – Yes, I think it’s the same everywhere and it’s kind of beauty of investing, everyone thinks they are “above average”. I read the same thing about driving where 90-95% consider themselves above average drivers. So being in the technology sector, would you consider that it gives you an advantage when investing in those names? To me, tech stocks and long/short trades are a nice way to trade and earn money but not what I count on for my retirement. Things have been going for 2+ years but it’s certainly not as reliable as a dividend income or an ETF retirement portfolio.

  9. Comment by rusty — April 29, 2012 @ 2:58 pm

    I’ve been in dividend stocks for quite awhile, plus growth and speculative exposure. Since my retirement 5 yrs ago, I have accrued 3/4th of my porfolio in dividend stocks as my core holdings.

    I am waiting for the inevitable correction to buy more stocks. I’ve invested before major corrections and have lost a considerable amount which I doubt I will ever recover. So now my approach to investing has gotten a whole lot more conservative. Wealth preservation is my mantra

  10. Comment by IS — May 1, 2012 @ 4:22 am

    @rusty – I do understand that, wealth preservation becomes a priority at some point for all of us. What kind of a correction are you waiting for?

  11. Comment by Steve — October 4, 2012 @ 11:08 am

    I am AFRAID! I have lost 35% – 50% of my portfolio value 3 times in my 55 year life. I consider myself to be the worst investor in history. I read constantly & am convinced it has only gotten me in trouble. I am sitting almost 100% in cash; thereby, losing 1-2% per year to inflation & 20% a year since the ’09 bottom, to non-participation. My cash “hoard” currently represents approximately what I’ve saved; that is, I estimate a 0% return on my investments over 20 years.
    And I KNOW that if I put money in the market, the correction referred to above will begin — and likely begin in earnest.
    Call me damned if I do & damned if I don’t.

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