Income Strategies

CONNECT

Address:

305 Skyline Drive, Suite 3
Lady Lake, FL 32159

Phone:

352-753-8590

THE INVESTMENT PROCESS

 

 

 

 

 

 

 

 

 

 

As the last 10 or 15 years has proved to the investing public, you had better have an investment process in place that has flexibility. After 33 years of helping retirees to create retirement income streams I use 2 major strategies; Dividend Growth and Relative Strength. Let’s take a moment to look at them.

STRATEGY 1  -  DIVIDEND GROWTH

Many retirees today unfortunately, are employing a drawdown strategy which encompasses selling the principal every month, quarter or annually to continue having a comfortable retirement. I have seen very few cases over the years in which the selling off of one’s principal makes sense.

The Dividend Growth strategy utilizes taking out the dividends and or interest without selling the principal. You can’t predict or know if growth is going to happen, but you can develop a strategy to just take the dividends out.

STRATEGY 2  -  RELATIVE STRENGTH

What is relative strength? In basic terms it is a way to select equities based on performance. As defined by Dorsey Wright and Associates; “relative strength measures the price performance of a stock versus a market average or universe of stocks. A stock’s relative strength can improve if it rises more that the market in an uptrend or goes down less that the market in a downtrend”.

Let’s look at it another way; think of a loaf of sliced bread, each slice in the loaf representing a different sector of the market. If you just had two slices in the loaf one could represent stocks and the other bonds. If you had four slices it could represent domestic stocks, domestic bonds, international stocks and international bonds.

Ask yourself if you had the chance to coach an NFL football team would you rather coach a team that has lost the last 10 games or the one that has won the last 10 games? Have you ever heard the expression about being “ in the right place at the right time”? In the investment process you want to make every effort to be in the right place at the right time. Like in Football relative strength helps us identify the best sectors to be invested in.

Let’s take a look at two pictures that illustrate the concept that I am talking about:

 

 

 

 

 

 

 

 

 

FEES
My fee structure is very simple. I do not charge a commission to buy or sell, rather I charge a fee based on assets under management.

 

“Remember it is not only the size of
your Portfolio that matters
but how you Distribute it”

 

 

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck