Long term savings programs are generally for one reason, income. We save in our retirement plans for future income. Some of our investments outside of the retirement area are to produce either income, think rentals, or profits that can later be turned into income. When the body wears out, the assets must take over and produce a lifestyle cashflow.
So, it was interesting to come across the attached article about the status of the S&P 500 and the shape of the dividends it generates. Some time ago, I wrote about a $10,000 investment into the S&P 500 in 1976 is now yielding around $6,500 in dividends with a market appreciation that has more than kept up with inflation.
As for last week, all 3 US indexes were positive all showing double digit percentage gains. Some good news about the Covid-19 with medications and statistics give us hope that the turnaround is in sight. Add to that, the economic need to restart a $22 Trillion economy, the economic advisors to President Trump are beginning to take a closer seat to the front row of the daily briefings.
Wednesday was the start of the Jewish Passover. So, it is interesting to me that we are now working through our own plague, the plague of the Covid-19 virus. So, is there a light at the end of the tunnel or is it just another train on the way? It remains my continued belief that this to shall pass and we will learn and grow as a result of living through it.
Instead of the usual Monday morning, I wanted to get this out early so you would have it before the weekend started. Jean & I hope you have a wonderful Easter weekend celebration in spite of the fact that most of us will be worshiping virtually. As always, should you have any questions or just wish to talk, just email or call so we can schedule something.
PS: This is not an offer to buy or sell securities. No investment process is free of risk, and there is no guarantee that the investment process or the investment opportunities referenced herein will be profitable. Past performance is not indicative of current or future performance and is not a guarantee. The investment opportunities referenced herein may not be suitable for all investors.