How can you tell when a politician is lying?
When their lips are moving!
Sure, it’s an old dad joke. And my kids rolled their eyes when I said it the other night.
But these days, it’s extremely hard to know what politicians believe.
Their messages are crafted to match what voters want to hear.
And there’s plenty of doubt when it comes to what policies will actually take effect if these politicians are voted into office.
Forgive my cynicism.
But the truth is when it comes to your retirement, you need to protect and grow your wealth regardless of who’s in office.
That’s why this week, I’m focusing on election-proofing your retirement.
Today, we’re going to focus on the one thing that your retirement needs, regardless of who’s in office…
Your “Number” Is Much Less Important Than Your Income
A couple of years ago, a financial planning company came out with a marketing gimmick showing people walking around town with a number hanging over their heads.
This number was supposed to signify the money that each person needed to comfortably retire.
I hate this way of thinking about retirement. It’s way too simplistic, and a single number can’t realistically cover what you need for retirement.
There’s no way to tell how long you’re going to live, how much you’ll need to cover your expenses or what other variables factor into your unique situation.
But while I don’t think there’s an exact number you need to save for retirement, I do think there’s another number that can be important as you plan your golden years.
That number is your income — and it can come from many places.
As a retiree, you’ll likely receive a regular payment from the Social Security Administration.
You may also cash a regular check from a previous employer or pension plan.
And if you’ve put savings aside, you can use that cash to generate extra income.
In today’s political and economic climate, that extra income is more important than ever!
After all, with interest rates at historic lows, high unemployment and a logjam on any stimulus that might come out of Washington, the need for income is high.
Thankfully, that widespread need can work in your favor!
When Income Is Precious, Investors Pay Up!
As we get closer to the election and potential shift in power, investors are focused on generating reliable income.
This is true for many reasons: historically low interest rates, the fact that many people are out of work, and the concern that Social Security may disappear.
Basic economics tells us that when demand for a commodity is high, the price for it will naturally rise.
And believe it or not, that economic law applies to income as well!
With so many individuals and institutional investors hungry for income, the worldwide demand for it is high.
That means around the world, investors are increasingly willing to pay more for the stocks that generate this extra income.
If you know that this trend is evolving, you can invest in these dividend stocks ahead of the wave of capital and then profit as new buy orders send these stocks higher.
Fortify Your Retirement Ahead of Election Day
One of the reasons I love dividend stocks is that they can give you stability in times of uncertainty.
For example, if an election result were to send popular stocks lower, investors will immediately start searching for ways to minimize their risk.
And what better way than to invest in solid companies that pay reliable dividends!
That’s why during stressful times for investors, dividend stocks hold up better than other stocks. And in many cases, the best dividend stocks move higher.
So here at Rich Retirement Letter, we’re constantly looking at the best opportunities to generate income for your retirement.
It’s not just for the dividend payments we receive each quarter. It’s also for the stability that attracts other investors and naturally sends stock prices higher.
This election season naturally favors income plays that help you avoid the volatility we’re seeing enter the market.
So make sure you’ve got a healthy portion of your retirement invested in high-quality dividend stocks!