5% Dividend Yield for Income in a Low Interest Rate World
Retiree Earning Income from Dividends Instead of Low-Yielding Bonds Low Interest Rates The Fed is likely to hold its short-term interest rate near zero for at least five years. This is a challenge for retirees and others who need stable sources of income. Depressed...
Investing for Inflation
US Dollar After Inflation The US Federal Government’s massive $5.6 trillion expansionary policies through July 31, 2020 mitigated much of the short-term economic damage from the government-mandated shut-down, but is causing many investors to worry about impending...
Investing Opportunities as the Stock Market Peaks
For clients seeking income, such as in retirement, I constructed a diversified low-volatility stock portfolio that yields about 4.5%.
10 Ways to Improve Your Retirement Investments Now
Consider the following 10 ways to improve your retirement investments during the pandemic: Do increase long-term investment allocations to stocks while interest rates are depressed. At current low interest rates on high-quality bonds, a diversified portfolio of stocks...
Retiring During the Pandemic
For people planning on retiring soon, the Covid-19 pandemic produced two new factors to consider: Lower Interest Rates reduce income. Retirees will earn at least ¼ less income from their bond holdings now than January 2, 2020, as shown in table below.Higher Risk....
Opportunities Remain in Stocks’ Splintered Recovery
With the economy spiraling into a depression (25% or more unemployment), the S&P 500 stock index’s dramatic 27% recovery from its March 23 low can largely be attributed to: investors looking beyond the next few quarters of weakness, investors valuing firms with a...
Navigating Your Investments During the Coronavirus Crisis
Where are We Now? The S&P 500 index, a good proxy for the stock market, closed on April 9 at 2,789.82. The index peaked on February 19 at 3,386.15, fell about 34% by March 23, then rose nearly 25% by April 9, using closing prices. We are now down nearly 18% from...
3 Steps to Know When You Are Financially Ready to Retire
Determine the Resources You Will Need to Sustain Your Living Expenses Once You Stop Working A common question people ask is “Do I have enough money to retire?” The answer depends on several factors. This 3-Step guide will help you determine the resources you will need...
Stock Market Returns Averaged 10% Since 1926
Although the S&P 500 index returned 10%, on average, since 1926, the actual return in each year was 10% +/- 2% in only six of the past 93 calendar years. In most years, the index’s return was outside of the range—often above or below by a wide margin—with no...
Customized Financial Advice for Widows
Great perspective for widows excerpted from the NY Times article "You're a Widow, Now What?". “Widows may not recognize that they are in a state of shock, and they will not make wise decisions,” said Ms. Armstrong, author of “On Your Own: A Widow’s Passage to...