Thus each year for the past 23 years, we here in America have spent more than we made, and particularly so in the last year, spending a full 6% more than what we produced. The main objective is to generate an income which will hopefully rise each year to keep pace with inflation – a sort of index-linked annuity substitute. When the stocks are brought, they should be monitor regularly and keep eye on how the share price is tracking. What is important is not this percentage but what I hope will be the actual income from the portfolio rising year on year to keep ahead of inflation. Of course, the capital value of my portfolio will rise and fall with the general markets. The previous post was 12 months back so perhaps now is a good time to update as the markets appear to be fairly quiet. The Good Stock Investing web site (the Site) is intended for information use only in conjunction with other information research done by the user and the formal investment advice rendered by a broker or financial advisor suitable to the user. The Site does not offer individualized market advice suitable for any specific person.

The Site expressly disclaims to the fullest extent allowed by law all warranties of any kind, whether express or implied, including but not limited to the implied warranties of merchantability, fitness for a specific purpose and non-infringement. The Site’s liability, whether in contract, tort, negligence, or otherwise, shall be limited in the aggregate to direct and actual damages not to exceed the fees received by the Site from the user. The past results of the model portfolio of the Site do not guarantee and are not necessarily indicative of future results. As I absolutely depend on the income from my investments to pay the bills and put food on the table, the objective of the income portfolio is to produce a dependable and rising income. As you save money, you’re smart to put some in investments – they can earn more money than a regular savings account. A shareholder can also make money if his stock appreciates in value over time, which is called capital appreciation.

From time to time, I have received a forecast of the amount I would likely receive which seemed to be around £5,500 p.a. If you are rich enough or have an adequate amount of money to do so, then you must not consider your home as an investment tool. Over the longer term, equities should provide significantly better returns than bonds, but are more volatile. The stand out performance so far continues to be Aberforth Smaller Companies with a total return of 65% although many others have returned well over 20% on a total return basis. Just to recap, in June 2012, I moved my sipp into income drawdown as I felt I could generate a better income over the long term than taking an annuity. The net effect of combined SIPP drawdown and state pension will, I believe, more than adequately provide for my modest needs. In addition to any provision for personal pension, I have always believed that I would receive a full state pension at age 65 yrs. The government have recently introduced the new flat rate pension which takes effect from 2016. I will reach state retirement age after this and so should receive the full rate of around £145 per week or £8,000 p.a.

Indeed, in recent articles by both Monevator and RIT, the safe withdrawal rate may be as little as 3% or even less. For those choosing a safety first portfolio with a higher proportion of gilts, a rate of 4% may be too much. The cash portion of a portfolio might consist of money market funds, CDs, stable-value funds, and savings accounts. So trust the golden rule of diversification because putting all your money into one or two stocks is going to catch up to you eventually. Two weeks ago, the successful rescue of 13 Thai boys trapped in a cave caught the world’s and my attention. For example, there are many different index mutual funds that aim to track the performance of benchmarks like the TSX 60 or the TSX 300, two of the most popular ways of measuring the performance of the Toronto Stock Market. All cuisine are tasty, but sometimes, for example, French cuisine are more popular while at other times, Italian cuisine are in favour. Occasionally, it would favour under-valued stocks while at other times, it would favour growth stocks.