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.
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.
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