Comments on: A Motley Fool Baby Shower http://www.penny-saved.com/2006/04/13/a-motley-fool-baby-shower/ Personal Finance and Wealth by the Penny Sun, 12 Oct 2008 07:17:19 +0000 http://wordpress.org/?v=2.6.2 By: Brady http://www.penny-saved.com/2006/04/13/a-motley-fool-baby-shower/#comment-65 Brady Fri, 14 Apr 2006 16:10:23 +0000 http://www.penny-saved.com/2006/04/13/a-motley-fool-baby-shower/#comment-65 It seems to me that dividend stocks are typically considered good investments for people with really low risk aversion such as retired people. They tend to have really low gains and don't even always declare dividends either. In the long term of course, anything is going to accumulate money unless the risk is too high and it collapses. Perhaps bonds or CDs might be nice? Government bonds are really easy for people to buy (when compared to stocks or even CDs) as well and a long term bond will have a pretty decent guaranteed return rate. Then by the time the bonds are muture you can cash them in and reinvest in a slightly higher return area or diversify the balance with some higher risk stocks combined with some low risk mutuals. Haha... anyways... Not like I'm an expert just trying to recall some of the info I learned in financial management and accounting. It seems to me that dividend stocks are typically considered good investments for people with really low risk aversion such as retired people. They tend to have really low gains and don’t even always declare dividends either. In the long term of course, anything is going to accumulate money unless the risk is too high and it collapses. Perhaps bonds or CDs might be nice?

Government bonds are really easy for people to buy (when compared to stocks or even CDs) as well and a long term bond will have a pretty decent guaranteed return rate. Then by the time the bonds are muture you can cash them in and reinvest in a slightly higher return area or diversify the balance with some higher risk stocks combined with some low risk mutuals.

Haha… anyways… Not like I’m an expert just trying to recall some of the info I learned in financial management and accounting.

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