FAQ

What exactly am I getting with a subscription to your site?

You are getting access to our members area where we provide you with our model retirement portfolio (list of stocks) that you can follow in order to generate at least 4% in dividend income each year.  We provide monthly updates on those stocks, alert buy / sell recommendations, and provide support and answers to questions you have regarding the retirement investing process and our Portfolio.

Can you provide the Portfolio’s past performance record?

The Portfolio’s performance can be found here. This page is updated quarterly.

What do you mean by “currently yielding”?

“Currently yielding” means the Portfolio of stocks currently recommended by the 4% Portfolio team is currently yielding the amount shown.  To put it another way, if you invested evenly among the stocks in our Portfolio when it was “currently yielding” 4.3% then you should expect to earn 4.3% on your total invested amount in dividend income for that year.

How is the Portfolio yield calculated?

The listed yield is based on the total average yield of all the stocks in the 4% Portfolio on the date stated on our Home Page.

Is the goal of the 4% Portfolio to only gain 4% each year?

No, the portfolio is aimed to insure a 4% return from dividends alone. The Portfolio’s price movements should also closely mimic that of the S&P 500.

Are you making the investments for me?

No. You are making your own investments in your brokerage account based off the stock list we provide you.

How often can I expect to get paid from my stock holdings?

Most of our stocks pay a dividend quarterly (every 3 months), although there are some that may even pay monthly. These dividend payments will be made into your brokerage account which you can then setup to transfer to your checking or savings account.

My retirement savings aren’t in a retirement account, will the 4% Portfolio still work for me?

You bet! In fact, you’ll be able to enjoy the low tax rate that dividends offer (typically only 15%) outside of retirement accounts.  Income that is withdrawn from retirement accounts are taxed at the ordinary income tax rates.

How often will you send out updates?

We will send out monthly updates on the portfolio. There may be times when we send you an email for urgent notifications such as buy or sell recommendations.

Does the Portfolio contain Master Limited Partnerships (MLPs)?

No. MLPs can offer high dividends but their tax structure complicates things come tax time, especially when held in an IRA. We like to keep it simple for our subscribers so we do not include MLPs in our Portfolio. If you wish to invest in MLPs within your IRA, we recommend speaking to an accountant so you are aware of the additional tax complications.

Shouldn’t a retirement portfolio contain a certain percentage of bonds?

Typically this is recommended. But in today’s low interest environment, bonds are not paying what they have in the past. We, at the 4% Portfolio, believe dividends offer considerably more reward for nearly the same amount of risk as bonds.

What about the IRS’s Required Minimum Distribution (RMD)?

RMD is required for retirees 70 or older. While we will have to refer to your accountant on how much you need to withdraw, we will help answer questions as well as provide investment options for any additional income you are required to withdraw.

I don’t have an IRA set up yet, what brokerage should I use?

That depends on you. While we are happy to offer our advice and give you the pros and cons of several online brokerages, there are personal factors that will ultimately influence your decision. Feel free to contact us if you want to learn more about your options.

When does my monthly subscription renew?

Your subscription will renew automatically every month on the anniversary of your signup date. For example, if you signed up on July 15th, your subscription would renew on the 15th of each month.

Why should I keep my subscription once you’ve provided me with the portfolio’s stock holdings?

We are constantly analyzing the portfolio’s stock holdings. Ideally we don’t want to have to recommend selling a stock, but if we believe a company’s dividend could be at risk based on reported earnings, recent news reported by the company, or larger events that affect the stock’s industry as whole, then we will notify you. We will provide monthly updates on the portfolio that will provide important information. Also, there will be times when we will recommend a change in the portfolio that will increase your annual income.

Can I pay by mail instead of online via a credit card?

Certainly. If you would prefer to pay via mail please contact us and we will provide you with instructions.

How do I cancel my subscription?

While we hate to see you go, there are a couple of ways to cancel your subscription. You can do it yourself by logging in to the site and clicking on the “Account” link and then “Subscriptions”, or you can send us an email letting us know you want to cancel your account and we’ll take care of the rest.

 

Have a question we didn’t answer? Please don’t hesitate to contact us and ask. There is no such thing as a dumb question when it comes to your retirement.

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4% Portfolio is Currently Yielding