growthThe 4% Portfolio had another outstanding year in 2014! Our model retirement portfolio generated a significant total return for the year and, more importantly, continued to churn out a strong dividend income stream of more than 4%. For those of you who are unaware of our Portfolio service, we provide our members with an example retirement portfolio that is designed to pay out at least 4% in dividend income each year as well as increase that dividend income annually. We provide monthly updates to our members to keep them informed about the stocks in our Portfolio and we also provide buy/sell recommendations that will increase your annual dividend income and/or capitalize on strong price gains. Check out what our members who followed our Portfolio achieved in 2014.

Total Return

The total return of the 4% Portfolio for 2014 was 18.5%, easily beating the S&P 500 Index’s return.

2014 4% Portfolio Performance

The 4% Portfolio is not focused on total return though, the primary goal is to generate a safe, reliable, and increasing income stream for our members. We are happy to report that of our total return, dividend income made up…

Return From Dividends

4.7% of the 18.5% return. Members were able to pocket a 4.7% return in dividend income. That was cash that went straight to their bank accounts without them needing to reduce their investment principal. For those members following the 4% rule of retirement investing, they were able to easily achieve the 4% income they had expected to live off of and had extra income to spare.

Dividend Increases

Our Portfolio isn’t just based on current yield. We focus on companies who also have a history of increasing their dividend payment year after year. Inflation can be a destructive force in retirement. The goal of our Portfolio is not to just  counteract the effects of inflation, but to exceed those effects. Our Portfolio had 26 dividend increases in 2014 which resulted in a total increase in income from Jan. 1 to Dec. 31 of 8.7%!


Although our Portfolio is intended to be fairly static, we cannot ignore times when we can sell a position for a solid gain and move that money into another higher yielding stock. We made four buy/sell recommendations in 2014 that resulted in an average gain of 21%. For every sale, we recommended a move into a higher yielding stock that significantly increased our member’s income. In fact, we averaged nearly a 30% increase in dividend income with each new buy when compared to the income that was previously being generated by the stock we recommended selling. And we made these moves without sacrificing the Portfolio’s diversification and overall risk.

We are thrilled with our results for 2014 and look forward to what 2015 has to offer. While its hard to predict what total return we will achieve in 2015, we are quite confident that we will continue to see 4%+ in dividend returns with increases announced throughout the year.

Are you ready to take control of your retirement! Then sign up now! Not a member and have a question about our service? Please don’t hesitate to contact us and ask. You can learn more about our investment philosophy, or see why we think the 4% Portfolio is a better option to the retirement investing status quo.

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