model retirement portfolio growth

Our model retirement portfolio performed extremely well in 2016 easily beating the overall market with total returns that exceeded the S&P by nearly 100%. While total return is not our primary goal, the 4% Portfolio beat the S&P 500 for the fourth year in a row!

For those of you who are unaware of our Portfolio service, we provide our members with a model retirement portfolio to follow 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 model retirement portfolio achieved in 2016.

Total Return

The total return of the 4% Portfolio in 2016 was a whopping 18.2%, once again crushing the S&P 500 Index’s return.


2016 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 has made up…

Return From Dividends

… 4.8% of the 18.2% total return. Members pocketed well over 4% in real returns in the form of 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 easily achieved the 4% income they expect to live off of with extra cash 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 to not just counteract the effects of inflation but to exceed those effects. Our Portfolio had 28 dividend increases in 2016These increases came through routine dividend increase announcements as well as a few strategic buy/sell recommendations.

Dividend Cut

Sadly we had our first ever recommendation that unexpectedly cut its dividend at the beginning of the year. Despite this cut though we were able to actually increase the annual dividend income generated by our Portfolio by making two strategic buy/sell recommendations that have performed exceedingly well in both total return and dividend income generated.


Although our Portfolio is intended to be fairly static the volatile beginning of 2016 created higher than average buy/sell recommendations. Including the holding that cut its dividend, we made seven buy/sell recommendations in 2016. These Portfolio changes resulted in an average dividend increase of over 30% 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 2016 and look forward to what 2017 has to offer. While it’s hard to predict what total return we will achieve in 2017, we are quite confident that we will continue to see 4%+ annual dividend income with consistent 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 typical retirement investing strategies.

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