The status quo for retirement investing is broken
Financial companies have trained investors to believe they need that company and its mutual funds in order to have a successful retirement. Investors believe that the big financial company has their best interests in mind, when in fact that company is more concerned with its own bottom line.
Although the 401(k) and mutual funds were created to benefit the investor, financial companies are the ones who have truly been rewarded. Financial advisers aren’t losing sleep over your future. Make no mistake about it – no one cares more about your future than you.
Why the 4% Retirement Portfolio is Better
The 4% Portfolio was designed to help individual investors take control of their retirement accounts. We provide a smarter, simpler and less stressful solution to retirement investing. Our model retirement portfolio is designed around the following ideals.
- Earn at least 4% in income each year through dividend payments without having to reduce your portfolio balance.
- Invest only in safe, established companies with strong financial histories.
- Increase the investor’s income each year through dividend raises.
- Reduce volatility within your portfolio.
- Reduce or eliminate worries about price fluctuations.
- Eliminate the reliance on price appreciation to fund your retirement.
- Eliminate paying high fees to the big financial corporations.
Stop Worrying About Price Fluctuations
With the 4% Portfolio, retirees don’t have to fret about day-to-day price fluctuations of their investments. By carefully selecting companies with sustainable growing dividends and long histories of dividend payments, an increase or decrease in overall price becomes much less of a concern. If a stock’s price drops 20% but its dividend remains constant, that price drop has no affect on the dividend income being produced by the stock. A stock’s dividend is much easier to predict than its price and a dividend exists independent of the market price.
You Shouldn’t Have To Sell To Generate Income
The rich get richer
Everyone has heard the old adage “the rich get richer“. This is an obvious observation and there is a simple reason behind it. They are able to get “richer” because once they have amassed their fortune they can easily live off the income that fortune produces without touching the principal. This is the same philosophy people should follow when they retire. You should not be reducing your principal each year, you should be living off of what it produces. The 4% Portfolio shows you how to accomplish this.
Don’t put all your eggs in one basket
Just because you’re retired doesn’t mean you shouldn’t get a raise!
Avoid High Mutual Fund Fees
Fees can, on average, reduce your 401(k) balance by up to 30%
- Are you aware that you are even paying these fees? An AARP study on 401(k) participants revealed that “71% reported that they did not think they pay any fees.”
- Did you know that if you have $500,000 in your 401(k), you are likely paying at least $6,500 in fees each year.
- And aside from a fund’s stated fee, your 401(k) likely has other hidden fees such as trading costs, investment management fees, administrative fees, and marketing fees all of which you are unlikely aware.
Investing for your retirement can be a scary and confusing process. We’re here to make it easier. If you need to rollover your current 401(k) to an IRA, we’re here to help and answer questions. Once you have invested by utilizing our Portfolio, we will keep you updated on those stocks each month. We will continue to analyze each company when they report earnings and, if necessary, recommend adjustments to the portfolio based off our analysis.
Let us help you take control of your retirement.Sign Up