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Ask Paula | 10-Year-Old Asks: How Do I Save for My First Car?

Afford Anything

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Retiring on Dividends vs the 4% Rule

This chapter explores the debate between retiring on dividends versus using the 4% rule for portfolio withdrawals. Paula and Joe discuss the similarities and differences between the two strategies, emphasizing the importance of combining gains from a portfolio and earning dividends for safer withdrawals. They also explain the concept of inflation and its impact on investing, as well as the implications of investing in high-yield dividend companies.

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