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Balancing Dividends and Total Returns
This chapter explores the psychological and financial implications of choosing between dividend income and total returns in investment strategies, especially during retirement. It emphasizes the significance of diversification to reduce volatility and presents a comparison between dividend aristocrats and broader equity ETFs, arguing that total return strategies often outperform dividend-focused approaches. Additionally, the discussion encompasses tax efficiency and the necessity of a balanced portfolio across various asset classes to enhance long-term performance.