Greetings!
Hey, everybody! I hope that everyone is outside enjoying the onset of Spring instead of inside refreshing their email inboxes to read this newsletter!
We had a workshop last night at Epic Chophouse here in Mooresville, so welcome to the mailing list to everyone we got a chance to meet last night. Hopefully you enjoy reading this newsletter and begin to look forward to it every month!
This month I've got Jim's March article from Lake Norman Magazine. He wrote about the importance of growth vs. income for retirees and near-retirees.
Jim also gave me a couple Thoughts of the Week for this month again, so check those out below!
Tomorrow night (Thursday) we have another workshop at Epic Chophouse in Mooresville that's all filled up just like last night's. We'll be moving back over to the Sherrills Ford area in April at Lineberger's Steakhouse; I've posted the dates on our website, so if you're interested, check it out!
 -- Tyler Stillman |
Growth vs. Income: What's Most Important?
Lake Norman Magazine, March 2012
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Which came first: the chicken or the egg? We've been arguing about that one forever. In the financial world, it's growth vs. income. Should you chase growth or focus on income? If the answer for you is income, then ask yourself if you want variable income (I call it "maybe" income) or guaranteed income.
Here's my professional opinion on the answer to the question: both! It all boils down to your age, your needs and your risk tolerance. There are three phases to financial planning: accumulation, preservation and distribution. All three must be handled differently and all three have specific strategies that should be applied. Remember, the individual that got you to retirement may not be the right person for you in retirement.
Read more...
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The Importance of Income
Thought for the Week, February 13, 2012 |  This week, we use actual data from DIAS income-seeking portfolios to illustrate, in our opinion, how important the generation of income is to a manager that aims to produce consistent long-term investment returns. But first, we need to make a few statements to ensure the reader understands that our use of specific performance data is strictly for the purpose of explaining our investment philosophy. Therefore, all returns shown below are:
- Approximate. Actual returns may vary between different investors in actual portfolios.
- Not a solicitation to buy or sell a specific investment. Our hope is you can use this information as part of your general understanding of income investing and to decide if DIAS is suitable for you.
- Not an indication of future performance. We live in volatile times where very few investments can be considered risk-free. We offer our opinions at a time when the rules governing Money Market Funds are being reviewed to assess their ability to protect investors from capital loss. There can be no guarantee that our actual performance will reflect our investment goals.
This commentary is the opinion of one investment manager: Global Financial Private Capital.
Read more... |
A Ten Year Idea: Natural Gas
Thought for the Week, February 27, 2012 | We regularly refer to ourselves as institutional asset allocators not stock pickers or traders; hinting at important distinctions between the two.
The difference between the two lies somewhere in the detail of how a professional asset manager constructs long-term, diversified portfolios based on allocating assets to themes (ideas) wherein not all holdings have to generate returns all of time.
For example, we may be happy to see a security in our portfolio fall in value if it was bought to temporarily hedge the exposure of a larger theme. For periods when the larger theme doesn't generate returns, as even the best investments rarely go up constantly, the hedge may provide a decent return. This can help overall returns and flatten volatility.
These asset allocation themes, synonymous with professional portfolio managers, have a habit of working out over the medium to long term, although short-term corrections can be experienced and no investment can be guaranteed to generate a return.
Traders, on the other hand, tend to place shorter-term bets that individual, narrowly focused securities will rise in value. Oftentimes, their medium to long term performance can be described as "some you win; some you lose." Traders hope the wins outweigh the losses over time.
Read more... |
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