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KISS Retirement Investing: Focus On Income

KISS stands for Keep It Simple Stupid.  Smart people have a way of unnecessarily overcomplicating things.

Q4 hedge fund letters, conference, scoops etc

KISS Retirement Investing

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ValueWalk readers can click here to instantly access an exclusive $100 discount on Sure Dividend’s premium online course Invest Like The Best, which contains a case-study-based investigation of how 6 of the world’s best investors beat the market over time.

Complicated things tend to break more easily.  There is strength in simplicity

Retirement and pre-retirement investing are no different.  They should be kept as simple as possible.

Retirement investing is all about creating sustainable passive income.

That’s because in retirement you need an income stream to cover your costs that doesn’t come from a ‘normal’ job.  It’s not retirement if you are still working 40+ hours, after all.

Perhaps the most straightforward way to generate income – without trading your time for money – is to invest your savings into income producing securities.

At Sure Dividend, we believe dividend paying stocks (and closely related REITs and MLPs) are perhaps the best way to invest your assets to create a growing income stream.

“A chicken for its eggs, bees for their honey, cow for her milk and a stock for its dividend.” – John Burr Williams

That’s because publicly traded equities have the following favorable characteristics:

  • Stocks have generated the strongest returns of any major asset class over the long run – and it isn’t close.
  • The cost of buying and selling individual securities is cheap now – and holding stocks after purchasing them is free (no management fees is a good thing).
  • The stock market’s combination of transparency (readily available financials) and liquidity reduce uncertainty.

Now let’s discuss one of the biggest perceived drawbacks of investing in stocks; volatility.

Focusing on volatility and stock price movements is one of the quickest ways to fall down the black hole of complexity with retirement investing…

But market volatility doesn’t really matter for long-term income investors.  That’s because volatility affects prices, not dividends.

The stock market can go down 10% or 50% and that says absolutely nothing about your dividend income.
Price declines don’t impact the reason of investing; income.

But price declines do mean that putting new money into the market from any source (like reinvested dividends) is invested at more attractive rates.

Example:  A stocks costs $100 per share and pays $3 per share in dividends for a 3% yield.  If a recession occurs (and this is a recession safe company), the stock price may go down to $50 per share, but the dividend stays at $3 per share.  This brings the yield up to 6%.  Putting money to work at 6% is better (twice as good in fact) than putting it to work at 3%.

When you invest for income you get to profit from market volatility by choosing when you buy and sell.

That’s another reason why we believe income investing in general makes sense for many retirees and those preparing for retirement.

But this hasn’t touched on an important part of retirement and pre-retirement investing; what specific securities to invest in.

Picking exactly what to invest in can get complicated, but it doesn’t have to

The financial industry has a wide variety of options that range in cost from asset managers and active mutual funds which can cost more than 1% of your assets under management annually, to investing directly in individual securities which is free after paying nominal brokerage fees (usually ~$5 per trade).

The less you pay in investing fees, the more money is left in your investment account to grow and produce income for you.

Example:  1% of assets under management doesn’t sound like a lot, but if you do the math, it adds up.  If you had a $500,000 portfolio you would pay $5,000 every year.  $5,000 over a 20+ year retirement comes to $100,000 or more.  Maybe I’m ‘too cheap’, but there aren’t a lot of services I’d like to pay 6 figures for.

That’s why at Sure Dividend we seek to minimize investing expenses relative to the traditional investing industry.  That’s what’s best for our 6,000+ paid members and 100,000+ email readers.

And that’s why we created The Sure Retirement Newsletter.

The Sure Retirement Newsletter provides actionable buy and sell decisions and new Top 10 lists of 4%+ yielding securities each month so you stay up to date with high income investing in quality securities.

Here’s how…  The Sure Retirement Newsletter is powered by The Sure Analysis Research Database, which includes more than 480 individual company reports which are typically updated quarterly. And we will be adding more year after year (our goal is 100+ new securities this year).

There are high quality income security bargains to be found in the market, but it requires analyzing hundreds of candidates to find the few that really stand out.

“The person that turns over the most rocks wins the game.  And that’s always been my investing philosophy.” – Peter Lynch

Having a subscription to The Sure Retirement Newsletter means you have a team of investment researchers ‘turning over’ hundreds of income securities for you, constantly looking for the best income stocks, and sending you the 10 best 4%+ yielding investments we find each month.

The Sure Retirement Newsletter costs $89/year. It is priced to be an absolute no-brainer bargain relative to the value provided.  Think about what an actively managed mutual fund or investment advisor charges at ‘just’ 1% of assets under management and compare….

But we wanted to do even better…  That’s why from now through the morning of 2/26/19 (no exceptions), you can join the Sure Retirement Newsletter for just $49/year.

Also, we have a risk-free 7 day trial.  You are literally not billed for 7 days.  Opt out during that time frame by emailing support@suredividend.com, and you won’t pay a penny (but most people stay on past their free trials because our newsletters deliver serious value).

Click here to start your free trial of The Sure Retirement Newsletter and lock in your $49/year pricing.

Note:  This offer expires the morning of 2/26/19, no exceptions.  Enter coupon code Big40 if it doesn’t apply automatically.

The same offer is also available on our Sure Dividend Newsletter.  While Sure Retirement focuses exclusively on 4%+ yielding REITs, stocks, and MLPs, The Sure Dividend Newsletter focuses on dividend growth stocks.

These are stocks that have, on average, lower yields than Sure Retirement recommendations, but have (again, on average) better growth prospects.

Click here to start your free trial of The Sure Dividend Newsletter and lock in your $49/year pricing.

Email suppport@suredividend.com if you have any questions.  We look forward to hearing from you!

Thanks,

Ben Reynolds

Sure Dividend

ValueWalk readers can click here to instantly access an exclusive $100 discount on Sure Dividend’s premium online course Invest Like The Best, which contains a case-study-based investigation of how 6 of the world’s best investors beat the market over time.


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