Whether you’re a business owner, blogger, freelancer, or other type of professional, you should never let your income alone determine your financial health.
To truly set yourself up for financial success as you work toward retirement, you need to go beyond traditional thinking, and instead focus on more lucrative investments with higher returns.
How to Retire on Dividends: Earn a Safe 8%, Leave Your Principal Intact offers an alternative that can allow you to live more comfortably in retirement and achieve up to 8% yield annually to boost your living situation.
This article will walk you through the key talking points so you can learn a bit about what to expect and see how reading Brett Owens’ and Tom Jacobs’ book can set you up for financial freedom in retirement.
Table of Contents
About the Authors
A book is only as good as the credibility of its authors, so let’s start there. Co-authors Brett Owens and Tom Jacobs bring plenty of credentials to the table.
Brett Owens is a graduate of the famed Cornell University he is a startup founder in Silicon Valley who shifted his focus for the last 10 years to investing in startups to achieve 6%, 7%, or even 8% yields. He currently serves as a chief investment strategist for The Contrarian Income Report.
Inspired by the encouragement to learn about money from a father who grew up during the Great Depression, Tom Jacobs bought his first stock at the age of 12. Jacobs attended Cornell University and Chicago Law School and continued a focus on investing throughout his life. He is currently a partner with Huckleberry Capital Management.
Who Should Read This Book?
This book is for anyone serious about setting themselves up for a comfortable retirement with the ability to rest assured you’ll be set to enjoy the rest of your life.
You don’t have to be an investing pro to benefit from the advice Owens and Jacobs offer. For example, as a freelancer, setting up for financial freedom upon retirement is vastly different from doing so as a full-time employee.
Reading this book can help you understand where to invest your money and give you guidance that you won’t get from an employer. You’re on your own, but this book serves as a guide to help point you in the right direction to make strategic investments.
You won’t find an Investing 101 type of walkthrough here, so you may need to do a bit of background research on your own first, but once you’ve laid the groundwork, this text can help you gain the most from your investment efforts.
What Will You Learn?
The authors urge you to avoid the trap of investing just like everyone else and instead focus on opportunities that are lucrative but more limited. You may be tempted to stuff all your money into investing in the big names like Amazon and Apple.
Those are safe bets, but if you really want to thrive in the markets, focus on smaller, lesser known brands. For example, the authors cite one instance where a major brand like Apple may yield 1.9%, but a small, lesser known brand, Medical Properties Trust, pays a much higher 5.9%.
The book also highlights the importance of “Second Level Thinking.” This is a concept championed by investor Howard Marks. It focuses on looking at the current market thought process and then going to the second level to look at it more deeply before making a move.
For example, some investors may be concerned about inflation, so they dump their stocks. While that may seem wise on the surface, second level thinking would tell you that while the outlook may be dim, since everyone is selling, it’s likely a good time to buy.
The authors recommend buying the right amount of stocks and not rebalancing. Stay the course, and don’t panic when the markets shift. As we tend to be living longer and longer these days, the staying power of your portfolio is the key to achieving financial freedom.
The above just scratches the surface of what the book teaches. I personally learned a lot about investing after reading this book, and I’ve never been a serious investor by any means. After reading this, I feel a lot more prepared and confident diving into the market.
Final Thoughts on How to Retire on Dividends
It’s clear that Owens and Jacobs have put together a blueprint aspiring investors and even those who fear investing can follow and be successful.
If you’ve been mulling over how to build wealth and turn your income into comfort and peace of mind in retirement, I highly recommend checking out this book.
If you’re looking to take your investment potential to the next level, you can purchase the book on Amazon and start learning. Buy The Book Here
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