Analyzing Example Portfolios
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Pros:
- Starting yield is lower (~2% = $1,000 a year) but grows 8–10% annually.
- Best for long-term compounding — income snowballs after 10–15 years.
- Stocks often increase in price too, boosting total return.
Cons:
- Doesn’t produce much cash right away.
- Requires patience.
- If growth slows, income can underperform expectations.