Jul 25, 2018

Reinvesting dividends is one of the most powerful tools available for boosting investment returns over time. It’s not opinion, it is traceable, trackable, mathematical fact. As an example, investors in the MSCI World index fund who had invested $1,000 dollars on January first of 1993, would have seen a total accumulation value of $3,231 dollars by March of 2018. That works out to a 324% increase—a very nice return. And, without dividends reinvested, it represents an annual growth rate of 5.9% net of a fee. But by REINVESTING all dividends, the same one thousand dollars would have grown to $6,416, nearly twice the raw index. With dividends reinvested, buying the identical original stocks, the annualized return would have been 8.3% and the total return over 640%! Today on Mastering Money, we'll explore exactly why and how a quality dividend reinvestment portfolio can grow capital systematically and mathematically, often with less risk. We'll also see how pairing dividend stocks alongside annuities can grow your net worth. MASTERING MONEY is on the air!!