START TO BUILD SOME MORE DEFENSIVE POSITIONS IN YOUR PORTFOLIO GIROUX’S DEFENSIVE ADDITIONS To equity positions: Utilities Other less economically sensitive stocks To fixed income positions: Longer term Treasury bonds Watch the related WEALTHTRACK episode.
ACTION POINT
BUILD UP YOUR SAVINGS
BUILD UP YOUR SAVINGS Americans carrying record amounts of debt The lowest savings rate in 12 years Little room for error Retirees need a cushion to see them through bear markets Withdrawing principal during market declines can seriously hurt financial security Watch the related WEALTHTRACK episode.
CONSIDER INVESTING IN A SMALL CAP INTERNATIONAL FUND
CONSIDER INVESTING IN A SMALL CAP INTERNATIONAL FUND Regional diversification: many do business within their home countries A history of outperforming large-cap competitors Not widely followed, giving active managers a better shot at outperformance Watch the related WEALTHTRACK episode.
CONSIDER BUILDING A LADDERED TREASURY BOND PORTFOLIO ONLINE AND FEE FREE
CONSIDER BUILDING A LADDERED TREASURY BOND PORTFOLIO ONLINE AND FEE FREE Buy a series of bonds that mature at different times TREASURY BOND LADDER Bottom rungs – short-term maturities (1-2 years) Middle rungs – intermediate (5-7 years) Top Rungs – long-term (10-30 years) Diversify interest rates Insulate portfolio from ups & downs Keep up with […]
ADD THE 50% RULE TO YOUR INVESTMENT DECISIONS
ADD THE 50% RULE TO YOUR INVESTMENT DECISIONS Goal is to keep at least 50% of your profits after taxes and fees Apply that criterion to all of your investments: financial, real estate, art…. Stuart Lucas’ 50% Rule investing strategy [.pdf] Watch the related WEALTHTRACK episode.
TAKE A LOOK AT CLOSED END MUNICIPAL BOND FUNDS
TAKE A LOOK AT CLOSED END MUNICIPAL BOND FUNDS Overlooked Asset Class Frequently Uses Leverage Can Be Volatile Issues a Fixed Number of Shares When Offered to the Public Trades Like a Stock on an Exchange Share Price Frequently Trades Below Its Net Asset Value Income Is Frequently Reinvested at a Discount Can Hold Illiquid […]
