Dividends vs Interest: 8 Crucial Differences Every Investor Must Know

Today we look at the 8 crucial differences between interest and dividends. We'll also look at how one should think about interest and dividends when using the 4% Rule of retirement spending.

Timestamps

0:00: Dividends vs Interest
0:40: 1. The source of dividends and interest
2:12: 2. How dividends and interest are taxed
4:28: 3. Tax-free interest and dividends
5:42: 4. Phantom Income
6:37: 5. Legal obligations
7:42: 6. Stability of payments
8:53: 7. Frequency of payments
9:35: 8. Interest makes you wealthier, dividends do not
13:14: The 4% 4ule & dividends and interest

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While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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