a little solar water heater sitting on your roof above your well-insulated attic; and you own enough IBM (or some other solid common, or even preferred, stock) to take full advantage of the $100 ($200) dividend tax exclusion. In short, you have done all the things that scream to be done. You have made the easy decisions.
Now what?
There are three compelling reasons to invest a portion of your funds in stocks.
1. Over the long run — and it may be very long — stocks should outperform
bonds. . . .
2. Unlike bonds, stocks offer at least the potential of keeping up with inflation. . . .
3. If all goes well, stocks can act as a tax shelter.
