Manage retirement income portfolio: plan

The reason people first bear the investment risk is to achieve a higher "realized" rate of return than the risk-free environment... that is, the FDIC insurance bank account has compound interest.

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  In the past decade, due to artificially low interest rates, this risk-free savings has not been able to compete with riskier media, forcing traditional "storage depositors" into mutual funds and ETF markets.


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  [Funds and ETFs have become "new" stock markets, where individual stock prices have become invisible, questions about corporate fundamentals are satisfied with blank eyes, and media talk leaders tell us that individuals are no longer stock markets].

There are many forms of risk, but the main concern of average-income investors is "financial", and when investing in income without the right mindset, there is a "market" risk.

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  Financial risk involves the ability of companies, government entities and even individuals to meet their financial commitments.


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  Market risk means that all securities will experience absolute certainty of market volatility...sometimes more obvious than other securities, but this "reality" needs to be planned and dealt with and never worried.


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  Question: Does the demand for individual stocks push up the fund and ETF prices, and vice versa?

We can minimize financial risk by choosing high quality [investment grade] securities, by appropriate diversification, and by understanding that market value changes are actually "income harmless". By developing an action plan that addresses "market risk," we can actually turn it into an investment opportunity.

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  How can banks get the amount of interest they guarantee to depositors? Regardless of how the market value changes, they invest in securities that pay a fixed rate of return.

You don't have to be a professional investment manager to manage your portfolio professionally. However, you do need to have a long-term plan and know about asset allocation... portfolio planning/organization tools that are often misused and misunderstood.

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  For example, the annual portfolio "rebalancing" is a symptom of an asset allocation dysfunction. Regardless of how the market value changes, asset allocation needs to control every investment decision every year throughout the year.

It's also important to realize that you don't need high-tech computer programs, economic scenario simulators, inflation estimators, or stock market forecasts to align yourself with your retirement income goals.

What you need is common sense, reasonable expectations, patience, discipline, soft hands and oversized drivers. The "KISS Principles" should be the basis of your investment plan; the composite revenues maintain a structurally safe epoxy resin during the development period.

In addition, emphasizing "working capital" [rather than market value] will help you complete all four basic portfolio management processes. [Business, remember PLOC?] Finally, have the opportunity to use what you have learned in college!

Planning retirement

The retirement income portfolio [almost all portfolios eventually become retirement portfolios] is a timely financial hero on the scene to fill the income gap between your retirement income and the margin you receive from your uncle and/or past deposits. employer.

However, how powerful the superhero is is not dependent on the amount of market value; from a retirement perspective, this is the income generated inside the garment, which protects us from financial villains. Which heroes do you want to cheer for your wallet?

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  The $1 million VTINX portfolio has an annual expenditure of approximately $19,200.


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  A multi-million dollar, diversified, long-lasting CEF portfolio generates more than $70,000 a year...even with the same equity allocation as the Vanguard Fund [slightly less than 30%].


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  The one million dollar GOOG, NFLX and FB portfolios do not incur any expenditure at all.

I have heard that 4% of the retirement income portfolio is normal, but what if it is not enough to fill your "income gap" and/or exceed the amount generated by the portfolio? If these "hypotheses" prove to be true... then this is not a beautiful photo.

When you look at the actual portfolio of 401k, IRA, TIAA CREF, ROTH, etc., it becomes even more ugly, and realizes that the actual disposable income is even less than 4%. Total return, yes. Achieved disposable income, "No.

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  Of course, the market value of your portfolio has been "growth" over the past decade, but it is likely that there is no effort to increase the annual income it generates. Financial markets rely on market value analysis, and as long as the market is rising every year, we will be told that everything is fine.


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  So what if your "income gap" exceeds 4% of your portfolio? What if your portfolio's output is less than 2% of the Vanguard Retirement Income Fund? Or if the market stops growing more than 4% per year... What happens when you still consume capital with 5%, 6% or even 7% of the funds?

The less popular [only available in personal portfolios] closed income fund approach has existed for decades and covers all "hypotheses". Combined with investment-grade value stocks [IGVS], they have the unique ability to leverage market value volatility in either direction to increase portfolio income through monthly reinvestment procedures.

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  Reinvestment every month must not be a DRIP [Dividend Reinvestment Plan] approach. Monthly income must be pooled for selective reinvestment in order to maximize revenue. The goal is to reduce the cost per share basis and increase position revenue by clicking the mouse.

Retirement income plans that focus only on market value growth are destined to be doomed from getgo, even in IGVS. All portfolio plans require at least 30% of revenue-focused asset allocation, usually more, but never less. All personal safety purchase decisions need to support an effective "growth purpose and income purpose" asset allocation plan.

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  The "Working Capital Model" is a vehicle pilot asset allocation system that has been tested for more than 40 years. When properly used, it can almost guarantee annual revenue growth with a minimum income target of 40%.

The following points apply to asset allocation plans that run personal taxable and tax deferred portfolios...not 401k because they usually do not generate enough revenue. These plans should be allocated to the maximum possible security within six years of retirement and forwarded to the IRA as directed by the individual.

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  Regardless of the size of the portfolio, the age of the investor or the amount of current assets available for investment, the "revenue-based" asset allocation begins with 30% of working capital.


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  Starting a portfolio [less than $30,000] should have no equity and no more than 50% before reaching six. From $100,000 [up to 45 years old], only 30% of income is acceptable, but income is not particularly high.


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  At 45 years old, or $250,000, income is 40%; 50% at 50 years old; 60% at age 55, 70% or 70% income-receiving securities at retirement, whichever comes first.


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  The target of the portfolio's income should be fully invested as much as possible, and all asset allocation decisions must be based on working capital [ie, the cost of the portfolio]; cash is considered part of equity, or "growth purpose" allocation


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  Equity investments are limited to seven years of experienced equity CEF and/or "investment grade value stocks" [as defined in the book "Brainwashing"].

Even if you are young, you need to quit smoking and develop a growing source of income. If you keep your income growing, the market value grows [you should worship] to take care of yourself. Keep in mind that higher market value may increase the size of the hat, but it will not pay the bill.

So this is the plan. Determine your retirement income needs; start your investment plan with a focus on income; increase your portfolio as your age grows, and your portfolio becomes more important; after retirement, or the size of your portfolio becomes serious, it will also make you The purpose of income distribution is serious.

Don't worry about inflation, the market or the economy... Your asset allocation will keep you moving in the right direction, while focusing on increasing your income every year.

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  This is the key point of the entire "retirement income preparation" scenario. Each dollar added to the portfolio [or earned from the portfolio] is redistributed according to the "working capital" asset allocation. When income distribution exceeds 40%, you will see a magical increase in revenue per quarter... no matter what happens in the financial markets.


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  Please note that all dividends paid by IGVS are also allocated based on asset allocation.

If you are within the retirement age of ten years, income growth is exactly what you want to see. Using the same method for your IRA [including 401k flips] will generate enough revenue to pay for the RMD [required mandatory distribution] and let you not have to reserve to say:

Stock market adjustments and rising interest rates will not have a negative impact on my retirement income; in fact, in any environment, I can better increase my income.

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