When generating income for retirement, we take what we call a “total return” approach. Simply put, this is using both the income derived from the investments (from interest and dividends) as well as the investment’s potential gain in price over time. When going about it this way, we can diversify across many investments and we can also put you in the driver’s seat by customizing your income to meet your goals.
One strategy that we hear of often is solely living on an investment’s “dividend”, and attempting to not sell any shares along your retirement journey. However, while dividends can be important, we think they’re just one piece of the overall income puzzle. > SEE MORE
Waypoint Wealth Management
With everyone now reporting about how the next major level of the Dow Index is near, I just read a headline that the NEXT target is well beyond the one we may soon pass. It’s as if the selloff in the beginning of this year didn’t even happen (our post from January). Can we all just agree on something really important? There isn’t a target. When it comes to investing well over a lifetime, to provide for a family’s needs and possibly for generations after them, there isn’t any secret ‘level’ or ‘target’ to reach where we are then finished. > SEE MORE
Pete Dixon, CFP®
Partner and Advisor