A few weeks ago, the Chief National Economic Advisor to President Trump suggest the tax breaks would offer middle class Americans a tax cut of $1,000 which they could renovate their kitchen or buy a new car. The reality is $1,000 will not do that but $10,000 could. Ideally after your debts are paid, you have savings, it is still possible to do something with $10,000 and financial advisors can offer more opinions what to do with it than $1,000. For $1,000 if you are not offered an index fund, then you should say you need to consult with your spouse or delay the decision.

However for $10,000 there are options to choose and you will have a better understanding of the advise you are given. You will be able to determine how much fees you are being charged? what does the advisor think of you and your abilities to generate another $10,000? are you being steered towards short or long term situations?

Linking to dividend paying stocks, with these types of companies there is a long term consideration for the idea is to look to profitable stocks or companies with near monopoly like conditions to continually earn income and over time the stock prices go higher. The prices may not go drastically higher this year, but over time the stock price trades at a higher price earnings multiple which sends up the stock price. In this fashion you receive income, preserve and strengthen your capital which are good things.

There are more questions than answers, till the next time – to raising questions.