Saturday, April 4, 2009

GE's CEO Speak's Out!

Cudos to Jeffrey Immelt for saying that the U.S. needs to get back to it's manufacturing roots! We need manufacturing jobs to keep our economy strong. I consider it one of the greatest mistakes in our nations history, when the Kennedy administration enacted legislation that encouraged corporations to send our jobs overseas. Bring those jobs HOME!

2009 Update

A lot of things have happened since my last post. Like a lot of other people, I lost my job in January of this year. I've been steadily searching for a new job since, but unfortunately find myself in one of the areas of Missouri with the highest unemployment rate. Fortunately, I am in much better shape than most of the unemployed. My unemployment benefits take care of all my bills and living expenses and my stock portfolio churns out enough cash flow in the form of dividends to continue my investment program. I am firmly convinced that now, more than ever, there are great opportunities to build wealth, for those who are in a position to take advantage of them.

Stocks of some of our greatest companies are at their lowest prices in years. Even though some have reduced or stopped paying dividends all together, there are still some great investments for anyone with the time to look for them. Since I wrote the article in October about buying stocks, I have added a great deal to my stock portfolio. I have also sold stocks that have fallen victim to the economic crisis and re-invested the money for continued growth. My stock portfolio contains stocks that pay in different quarters, so I receive dividend payments every month. While I currently use the dividends to add to my investments, I do have the option to transfer that money to my bank account if needed. This is the main reason I have advocated investing in dividend paying stocks and not tying your investments up in 401k's or IRA's. I do have an IRA account, but it was started after I built up my regular brokerage account. Unlike so many people I know, who have had to dip in to their retirement accounts to get through these tough times, the cash flow I receive from my dividends has helped me avoid paying any penalties for early withdrawals.

While I don't agree with everything the current administration is doing to fix the economy, I firmly believe that the recovery will come, it is just a matter of time. For some people, I know it's just not possible to put money aside right now, but for those who can and for those who have the courage to do so, I strongly advocate taking advantage of the extremely low prices in today's stock market.