Dividend Investing: Don't Get Caught In A Dividend Trap

Ready to get your free Retire Wyze assessment? Start here: https://wyzewealthadvisors.com/free-retirement-assessment/

Dividend investing sounds safe, but is it really the smartest way to generate income in retirement? In this episode, Ryan, Ron, and Nick unpack both the appeal and the pitfalls of building your retirement strategy around dividend-paying stocks. While the steady income may feel comforting, it can mask bigger risks like overconcentration, tax inefficiency, and the danger of chasing high yields. 

Nick breaks down why dividend income feels psychologically secure, even if it’s not always the most effective path. Ron shares real-life cautionary tales of clients who relied too heavily on dividends and paid the price. The team then outlines their own more holistic approach, blending dividend stocks with high-quality bonds and a disciplined rebalancing process. Relying on dividends alone might feel safe, but it can leave you overexposed, under-diversified, and vulnerable to market shifts.

Here’s what we cover in this episode: 

📈 Dividend stocks vs. bonds: what really protects against inflation?

⚠️ The danger of chasing yield (and what Westinghouse taught us)

🏦 How dividends impact taxes in taxable vs. retirement accounts

🧰 Our holistic approach to income planning 

🔄 Rebalancing 101: how selling high and buying low protects your future

Connect with us:

Web: https://wyzewealthadvisors.com/
Phone: [phone]

Watch the show on YouTube: https://bit.ly/3Ssra3H