Sat Apr 27 2024, by Tyler Gardner

Financial StrategyAsset ManagementCostco MembershipInvestingDividends

How to Live Without Paying for Anything: The Legal Way

Hey Dad, could you tell me something that seems illegal but isn’t?

Absolutely! I don’t pay for anything I buy.

That’s called stealing.

Oh no, my assets pay for everything.

Example: Costco Membership

Can you give me an example?

Let’s say you want a premium membership to Costco for life. Ooh, hot dogs!

You need $120 a year. We know that Walmart pays a 1.71% annual dividend. So if we save $7,000, invest that money, you get $120 a year just in dividends.

Wouldn’t I have just used that $7,000 on a Costco membership for life?

This way, you get the Costco membership, and you still own $7,000 worth of stock. It’s the double dip.

Learning Opportunity

You’re learning, son. Follow SocialCat. He makes complex finance seem easy.

Source