Dividend Investing Makes Retirement Threshold Obvious

Dividend investors know exactly when they can retire.
Dividend investors know exactly when they can retire.

I’m sure it’s just coincidence, but I’ve come across a lot of “When do you know you’re ready to retire?” articles the last little while. — EDIT: Just this morning, Robb at Boomer and Echo has written a post on this very topic. — After reading a few of these, it struck me that I had never really considered the question of when I would reach my (financial) retirement threshold. It’s not just because retirement is so far away, or because I haven’t taken the time to make a specific goal. The reason is because, as a dividend investor, the answer is so obvious that almost no thought is needed.

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Investing Based on Principles: Tuning Out the Financial Porn

Investing Princples
Getting financial info from a newspaper. How quaint.

With the advent of the Internet, stock investing was suddenly democratized. In a very few short years, it became possible for “regular folk” to invest directly in the stock market. Individual investors were no longer obliged to trade through a stock broker. Mutual funds didn’t need to be bought through a bank. Fees and returns could be compared easily. Information about companies financial situations was available for anyone who took the time to visit a company’s website and spend the time reading the vast quantities of information posted there. All of this is great; more information is always better, right?

Well, no. Especially when you’re getting started. Too much information quickly becomes confusing, and very shortly thereafter, overwhelming.

Like anything else, too much information is a bad thing. (Caveat: This is true unless you’re a professional investor, or investing is your chosen hobby.)

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LED Lights: Bright New World

LED light bulb on the right
The past, present and future of household lighting.

At our house, the light has finally gone on. The LED light, that is.

A practical, affordable LED light (light emitting diode) is one of those things has been just around the corner for a long, long time. The chief factors holding the technology back were the a) the fact that LED’s are naturally directional, and b) the manufacturing cost is significantly higher than for other types of bulbs.

The fact that LED’s are directional is actually an advantage in some applications. Spot lights and accent lighting are much more effective when the light is directional. For general use, however, a bulb must be able to throw light in every direction. This problem seems to have been solved completely. My new LED light shines brightly in every direction, and in this respect, is indistinguishable from any other type of bulb.

In terms of cost, as is often the case, as manufacturers gain experience with a technology, they get better and more efficient at producing that technology. LED’s are no exception. Prices have come down from upwards of $50 for a single bulb a few years ago to around $10 for a 60 watt equivalent today, which is what I recently paid for my bulb at Costco.

In terms of performance, Continue reading LED Lights: Bright New World