Debt Free

Well, not exactly, but what the heck are they talking about? There are several emails floating around that claim some pretty impressive gains with an investment vehicle called an 801(k). Obviously, few have ever heard of such a thing, even in the professional investment community (probably especially in the professional investment community!). If, upon reading the emails, it sounds suspiciously like a DRIP to you, you get the gold star for the day.

They are solicitations for an investment newsletter that covers drips. I'm not a subscriber, so I can't vouch for the efficacy of the information contained therein. However, I have posted previously about DRIP investing. You can, indeed make impressive long term gains with them. It all points to the effectiveness of choosing equities that pay high, consistent dividends (which I've also posted about, it's a great investment strategy, even over targeting stock price appreciation) and reinvesting them. In addition, there is a pretty good post over at Stock Gumshoe dealing with the whole 801(k) email thing. There are also some good follow up comments regarding the 801(k) solicitations that go into greater detail.