Richardcyoung.com

The Online Home of Author and Investor, Dick Young

Your 8% Retirement Yield

By

In the March 2016 issue of Richard C. Young’s Intelligence Report, Dick Young wrote that if you want to achieve an 8% long-term yield for your retirement, you must start now.

You indeed can achieve 8% as a long-term yield goal for your retirement years, but you need to get started now. There is little time to waste. I am going to show you how to construct an actual “Retirement Ark.” You have not read about such a plan before because only a minority in the investment industry thinks long term for clients. For most, it is all about action, trading, breaking news, taking profits and hot stories. The majority of “professionals” engaged in the brokerage industry are employed by firms to load clients up with (1) packaged products like annuities and insurance products, (2) dusty merchandise that has accumulated on trading shelves, or, as bad, (3) IPOs of a poorly understood nature. Your long-term self-interest conflicts with the personal financial needs of these salespeople. And how do I know about such practices? I spent 14 years in the investment banking industry, where I observed many unsavory investment practices.

Start Today

OK, the goal is an 8% yield in retirement. With today’s low yields, this lofty target is obviously going to take some doing. Later, when I lay out my complete program for you, I’ll show you how to put the ball in the air this very day. My program necessitates rigorous attention to detail, an organized mind, and a willingness to reach beyond prevailing wisdom, which I hope you possess.

First, I want to dig into the strategy I introduced a while back to appeal to investors looking for maximum safety, protection and reduced portfolio volatility–the same camp I am in. I am not looking for the investment markets to do anything for me. I long ago positioned myself to wade through any form of financial market dislocation. I always evaluate risk before potential returns. I invest with a complete understanding of where we are in terms of both the economic and monetary cycles. Where I would invest new money at the start of a cycle is quite different from where I would invest in the latter stages of a cycle.

Consumer Staples and Health Care Shares

As a cycle matures, understand that the number of suitable options for investment begins to dry up. It becomes much harder to find investments that fit your needs. Often, you will find yourself sifting through the rubble of industry sectors currently out of style with the investment community at large. Today, I am thinking energy and materials, including pipelines, which are on the top of my shopping list through thick and thin. Despite the cycle, consumer staples and health care always make my short list.  Most other industries blow in and out of favor depending on how Wall Street has temporarily abandoned one or more. Your smart option is to search out opportunity amongst the out-of-favor.

The following two tabs change content below.

E.J. Smith - Your Survival Guy

Preparing your investments and family for when disaster strikes.
E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.

Latest posts by E.J. Smith - Your Survival Guy (see all)