Quantcast
Are you getting the best rate from your broker?
Compare your broker's rates now to find out if you can save money

Choose your broker below
Thank you for selecting your broker
We are redirecting you to the Broker Center now
Welcome to Dividend.com. Please help us personalize your experience.

Select the one that best describes you
Thank you for your submission, we hope you enjoy your experience
ALERT

‘Trump Bump’ Forces out MedTech Company from Best Dividend Stocks List

Dividend logo

Wall Street and professional investors such as pension funds tend to be smug about how sophisticated they are in comparison to mom-and-pop investors.

We ordinary folk buy high, sell low, chase fads, and generally do poorly — or so goes the conventional thinking from our investment “betters.” What they don’t say is that more often than not, they fall prey to the same weaknesses as the rest of us and only occasionally do better than ordinary investors who buy index funds and simply sit there and do nothing.

Questionable Assumptions

But rather than focus on how individuals can do better than the “smart” money by buying and holding, let’s talk about another foible of professional investors: investment assumptions. Specifically, I’m referring to the assumptions made by pension funds about their future returns.

It’s true that “real” pensions — the kind where after working for 25 or 30 years for one employer you receive a monthly check for the rest of your life — are fading away. Most corporations either have stopped offering a defined benefit plan (the more precise term for what we call a pension), frozen their plan, and/or offered their plan participants an annuity from a life insurance company in its place. Still, pensions remain alive and are quite important in the public sector, and millions of teachers, police officers, firefighters, and other state and municipal employees are plan participants.

To read the Full Story, Go Premium or Log In

Popular Articles

Best Online Brokers

At Dividend.com a large portion of our readership is of a discerning, self-directed nature. As...

Rising Interest Rates

As Fed Hikes Rates, History Offers a Glimpse of Where Wall Street Is Headed

The stock market over the next few years may look markedly different than over the last few...

Premium Shutterstock 379901608
News

How Did Your Dividend Investments Do in 2016?

On an absolute basis, it’s easy to see how any dividend stock you own performed last year.

Start...