Income Stability in an Uncertain Market

stable income in rising and falling markets

When you’re getting ready to retire, you need retirement income that you can count on. You don’t have twenty years to wait for the market to become strong again. You need investments that produce dividends, cash payments, that you can live on without withdrawing your principal.

All over the country, investment advisors have told their clients, “We know our investment funds haven’t performed strongly this year, but the market is down. Hang in there with us until it goes back up.” How long are clients supposed to wait?

We can do better, and indeed, we think clients should expect better. Pier custom-designed portfolios are designed to perform when the market is up and even when the market goes down. The objective is to produce a stable income from strong companies with real shareholder value. These companies pay dividends from profits on a monthly, quarterly, or annual basis, and most of those dividend payments increase every year.

The way these companies distribute their earnings to shareholders is exactly what makes them so appealing to investors, and that in turn makes their stock price more resilient when the rest of the stock market is tanking.

If your investment strategy focuses solely on growth of stock price, you don’t make any money until you sell the stock. You have to wait for the stock price to go up, and if the market drops suddenly, those gains can quickly disappear. It’s like a roller coaster. We know you need more security than that for your retirement. We invest in companies that pay dividends so that you receive earnings for the entire length of time that you own the stock. Since these companies have real value instead of speculative value, their stock prices generally increase as well.

Keep reading about investment income…Inflation Protection