Wednesday, July 31, 2013

Emergency Fund 2

My emergency fund was rather different than most people recommend. Rather than a bank account with money, I had a trading account with dividend growth stocks. Dividend growth stocks are ones with low yields, but high dividend growth.

I figured that if this portfolio could not produce enough income, I could trade them in for stocks with higher yields (and lower dividend increases). The theory on this was that tough times were probably come with a depression in the stock market. So, yes, I would be selling stocks low, but I would also be buying stocks low.

I think that selling low and buying low is better than selling high and buying higher. I think that with the former case I would be better off than in the latter case.

On my other blog I am today writing about Superior Plus Corp (TSX-SPB, OTC-SUUIF)... continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my site for an index to these blog entries and for stocks followed. Follow me on Twitter.

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