The rising dividend every year will help off-set risk of inflation. This will be especially helpful when you retire and start having dividends sent home, rather than having dividends rolled over into more shares.

During retirement years, when dividend is being sent home to help ends-meet, price of stock doesn’t matter. Your income increases every year anyway, because every company owned has a program of raising their dividend every year.

After retirement, if your account is worth $250,000 one year and due to a severe drop in stock market, net value of your securities drops to $200,000, net worth of securities at $200,000 would still generate a higher cash dividend income. The net worth of your holdings means little, if income produced from your holdings is increasing every year, no matter what net worth.

That is partial reasoning behind investing in only those companies that raise their dividend every year. The other reasonis to eliminate risk in investing in stock market. A company that has been raising their dividend every year MUST be doing something right or money wouldn’t be there to pay their shareholders ever-increasing cash dividends.

The lower stock price goes, after your initial investment, higher dividend yield of stock. This is extremely powerful and beneficial for you when you are still having dividends reinvested. Reinvesting those dividends at a lower stock price accelerates your cash dividend income.

And if you are in retirement and no longer investing in stock, lower stock price does not affect your dividend income at all. The cash dividend income will still increase every year due to company’s program of raising their dividend every year.

As time goes on using this type of investment plan/approach you will discover that by reinvesting those ever-increasing cash dividends, coupled with stock appreciation is a very powerful wealth creating formula!

For more excerpts from book ‘The Stockopoly Plan’ visit: http://www.thestockopolyplan.com

Emotional Wealth People are emotional beings. The stock market is driven by emotions of greed and fear. The same greed emotion is driving some people to act dishonestly or commit theft. Emotional wealth is really about acquiring positive traits associated with personal success. Positive attitude, self-discipline and wisdom are some of emotional wealth that we should aspire to have. It is your attitude that determines your success in both work and personal life. A cliché but it is absolutely applicable in real life. Your attitude determines your altitude. Being self-discipline requires you to do things that are necessary, however unpleasant they may be, to accomplishing your predetermined goal. You make a plan and diligently carry out tasks as outlined that will bring you closer to your dream. A self-discipline person has his mind set firmly on big picture and will not give in to short term gratifications that will distract him from path of success. In today’s knowledge-based economy, wisdom of knowledge is crucial to our success. Knowledge is priceless. Someone can steal your wallet and other personal belongings but not your knowledge. With applied knowledge, we can achieve greater heights in both our professional and personal life.

In summary, we should strive for a balance between three wealth: material, spiritual and emotional wealth. Life will be more balanced and fulfilled if we possess all three wealth.