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Keep Your Retirement Investing Plan Simple - Own Premier Dividend-Paying Stocks

Investing for your retirement does not have to be overly complicated. In fact adopting a very simple plan increases your chance of saving and investing enough money to build a substantial nest egg. The following plan includes just six components, each of which is easy to understand and execute.

  • Begin to save and invest at an early age. Watch your money grow through the power of compound interest.
  • Save and invest regularly. Make savings and investing a habit with dollar-cost averaging.
  • Increase the amount you save and invest as your income grows. Don't spend all of your salary increases.
  • Invest in stocks that have multiyear histories of increasing dividends. Dividend Aristocrats have increased their dividends every year for 25 or more years.
  • Invest roughly equal amounts of money in at least twenty dividend-paying stocks. Diversification lessens the impact of poor performance from a few stocks. Or own  ProShares S&P 500 Aristocrats ETF (NOBL). This dividend exchange-traded fund owns a minimum of 40 Dividend Aristocrats.
  • Reinvest all dividends. Buy new shares via dividend reinvestment to increase the number of shares that you own.

See Retirement Stock Portfolios - Dividend-Paying Blue Chip Stocks and Retirement Stock Portfolios - Dividend-Paying Utilities Stocks.

If you prefer to own a broadly diversified portfolio of of dividend-paying and non-dividend-paying stocks, see Keep Your Retirement Investing Plan Simple - Own the S&P 500.

Use the Target Nest Egg Calculator to determine how much you need to save for retirement.

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