Wealth Curve Talk with John L. Smallwood

Wealth Curve Talk with John L. Smallwood

Episode #054 - How To Make The Most Of Ordinary Dividends

November 28, 2022

Welcome to the Wealth under Pressure Podcast. John Smallwood identifies key areas of pressure on your wealth and strategizes with you to reduce it.

In this episode, John continues to discuss the 19 Sources of Retirement Income. He explains ordinary dividends, and the benefit of owning them as an individual, in addition to whatever stocks are part of your IRA or 401K.

John is the author of 5 Ways Your Wealth is Under Attack and It’s Your Wealth – Keep It.” He has lectured extensively on financial planning and is a recipient of the Five StarSM Wealth Manager Award.

His dedication to his clients’ growth involves an evolving strategy. His focus is to meet the desires and needs of his clients in a changing economic environment.

Don’t miss John’s key points:

  • Dividends come from owning stock in a company.
  • Also, dividends pay to shareholders in regular intervals.
  • Furthermore, a strong dividend yield provides the income stream that you want as one of your sources of retirement income. This is apart from your investment accounts.
  • It’s important that your dividend yield comes from both qualified dividends and ordinary dividends. This refers to the way they are taxed: Ordinary dividends are taxed as ordinary income.

And more:

  • All dividends are ordinary unless they are specifically designated “qualified.” Examples of ordinary dividends are:
  • Real Estate Investment Trusts (REITs), traded publicly
  • Master Limited Partnerships (MLPs)
  • Hedge funds
  • Employee stock options
  • Having both qualified and ordinary dividends from many different types of companies in different industries and countries gives you a resilient income stream. Therefore, that income stream will be more tax-efficient than if your dividend income is from one source or one type.

We want you to accumulate as many of the 19 Sources of Retirement Income as you can. Investing in stocks as an individual gives you a separate stream of income from your retirement accounts. It can protect your plan from unforeseen events.

For more, listen above.

If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here.