The term “safe” is a relative one. Most people feel safer in their car than on an airplane even though statistics clearly prove the plane is a safer way to travel. Some people don’t feel safe sleeping in an isolated cabin in the woods but have no problems walking down a city street at night. A person’s feeling of safety is defined by their past experiences and observations which determines their own personal comfort within a situation. The same goes for a person’s definition of safe when deciding on making an investment.My Grandmother was a child of the Great Depression. She has led a sheltered life and is very careful with her money. I have had no luck trying to convince her that CDs are not a very good investment for generating income. She doesn’t care, she knows they are “safe” as they are FDIC insured. She does not understand that her one year CD earning 1% is actually losing money when you include the effect that the current rate of inflation has on her investment.
Dividend Safety Analysis
