Last week Jean & I traveled to Florida to visit some clients and friends. During the weekend, the House of Representatives passed the $1.9 Trillion Covid-19 stimulus package. Now the senate will pick it up and, through a budget reconciliation process, will just need 51 votes to pass the legislation and send it to the president’s desk for his signature. Meanwhile, there’s still around a Trillion dollars left to be spent from the previous stimulus packages. Also, there was a lot of news about the interest rate for the 10-year treasury bond ticking up to about 1.46% and the talking heads covered the airwaves with the threat of inflation.

So, when I came across the article about Warren Buffett and his comments concerning retirees trying to live on fixed income it was timely to talk about the dividends and market appreciation from equities. For the longest time, I have said that, over time, equities have outperformed inflation by a wide margin. With a portfolio of excellent companies with strong balance sheets and a history of consistently paying dividends and long-term market appreciation, savers and retirees position themselves for potential income from both sources.

Another source of potential income for retirees is what is called a reverse mortgage. When I first started talking about reverse mortgages as a potential income source, they were not well known or popular. Now they have become a reliable potential source of retirement income. The article is very informative, and I hope you take the time to read it.

As always should you have any questions or wish to speak with me, please call or email so we can put something on the calendar. Remember, the only choice is optimism, the pessimists never get it right.

Doug Alden

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Link to article two…

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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.

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