How Baby Boomers Can Find Themselves Again After Life-Altering Events

Do you feel like you need to find yourself again? Baby boomers can go through a lot of major life changes that throw your sense of self. Retirement, caregiving, empty nest syndrome, divorce, or the loss of a loved one can change your life forever.

After my mother's death, I got a letter from the hospice bereavement coordinator that helped my family care for my mother in her final days. They acknowledged that family members who have spent most of their time caring for their loved ones for months or perhaps years often ask themselves after their death, "Where do I go?" Egypt "What do I do?"

That's exactly how I felt after my Mom died. I was the primary caregiver for my Mom who had Lewy Body dementia, a combination of Alzheimer's and Parkinson's that rendered her helpless both physically and mentally. Being a caregiver was the hardest job I've ever had – by far. When she passed away, I assumed that while I would grieve for my Mom, I would also feel a sense of relief that my job was finished and my life could get back to normal.

Instead, I felt lethargic, depressed, and yes, lost after she died. My life, my thoughts, and my feelings had revolved around the care of my mother. I discovered that when your roles change drastically, you lose a sense of who you are. Your self-image is shattered.

This uncomfortable feeling can happen whenever you go through a major change in your life. Perhaps you've recently retired or become an empty nester. After dreaming of all the things you'd do when you had more time after child returning and working 9 to 5, you feel lost instead.

Remember, although you may no longer be a caregiver, part of a couple, an employee, or full-time parent, you are still 100 percent you. You just need to find that person again.

How?

ALLOW YOURSELF TO MOURN

If you have suffered a loss, be kind and patient with yourself. Acknowledge your feelings instead of sweeping them under a rug. Everyone is different. Emotions can range from anger, loss, guilt, sadness, lethargy, regret, confusion, and depression.

Whether you lost a loved one, a stranger in divorce, or a job, you may have lost your lifestyle and identity as well. It's okay to mourn that loss.

However, be careful not to isolate yourself during this process. You'll need a network of support. Healing may mean lots of heartfelt prayer, talking out your feelings with a support loved one, and / or focusing your energy in a healthy activity you enjoy.

LET IT GO

Avoid getting stuck in all the "I should have …" or "I wish …" feelings that often comes with grieving but can interfere with your recovery. Do not allow sorrow, stress, resentment, or bitterness to become a way of life. Take all that negative self talk out of your head like, "I've lost everything" or "My life is over." The fact of the matter is that your life is not over; it's just a new beginning for you.

The goal is not to wallow forever in negative feelings but to move on, be there for the people who need you, have a meaningful and productive life, and enjoy living once again. Be grateful for what IS working in your life right now. Live in the present and focus on the positive. Learn from your experiences and prepare yourself for the next exciting chapter of your life.

REDISCOVER YOURSELF

It's easy to get lost in caring for your family and children or elderly parents or nurturing a career. You may have given up a lot of things that you enjoyed. Make time to get to know yourself again.

"To move your life forward, it has to start by focusing on yourself," wrote Mark Branschick, MD in an article, Seven Ways to Thrive After Divorce, for Psychology Today. "Use this precious opportunity to rediscover who you are." Think of this time in your life as an adventure to explore the real you. "

You can lose sight of your unique gifts if you're focusing on what you do not like about yourself or your life. Think about your qualities and skills and how you can best use them. What really makes you happy? What really matters to you? What do you feel is your true purpose in life? What hobbies and activities did you enjoy before becoming a caregiver, a married couple, or a parent? What is it that will make you excited to get out of bed every day? Make a list of what you can do to reach your goals.

Rediscover what welcomed you fulfillment, satisfaction, fun, and joy as a way of rebuilding yourself and your life.

REINVENT YOURSELF

My life changed overnight and that can be disconcerting. In my case, we had recently moved into a new home we had built to be closer to my Mom (who unfortunately died the week before it was finished). My husband and I went from being empty nesters to a house full of grown children and grandchildren. Plus, I had to find new clients as a freelance writer and begin working again. It was a tumultuous year in other ways as well. My mother-in-law lost her fight against ovarian cancer and my son began going through a nasty divorce and custody battle.

Let's get real, between all these events and changes in my life, I was shaken. I felt fragile and scared depression for the first time in my life.

It's been a journey, but I am beginning to recover and heal. In the process, I'm learning to embrace all the new changes in my life. My new job writing magazine articles does require meeting strict deadlines, but the subjects are fun and it's exciting work. We are a multi-generational family living together, but I've come to enjoy having the cocoon of family love around me during this difficult time. My oldest son is going through many of the same emotions as I am as he finds his way after divorce and we've connected on a whole new level. When our three grandchildren are with us, they bring us joy and keep us young.

So, do not be afraid of change. Get out of your comfort zone and discover a new side of yourself. Maybe that means a new career, trying a new sport, traveling to a new place, changing your hair, or taking classes. Shake things up a little.

EMBRACE YOUR NEW ROLE

You will go through several stages before this step can happen. However, the time comes when you make a choice. You can move on and discover possibilities that a life change presents you or get stuck in negative emotions.

Find a way to put one foot in front of the other. If you can move forward, you'll probably see the light at the end of the tunnel. I know this from experience.

In time, you'll reconnect with old friends or make new friends, go to work, back to school, or volunteer, rediscover what once you thought you joy, enjoy new adventures, and find your way. You'll look at the changes in your life in a positive way, feel more confident and in control, and become more productive and optimistic about your future.

The time will come when you will find yourself again, embrace your new role in life, and feel like your new shoes are a good fit. You will breathe a sigh of relief. Life will never be perfect but eventually you will not have to struggle so hard to "make your life work" again. It just will.

How to best educate baby boomer workers on retirement

Seventy-four million: That’s the estimated number of baby boomers, according to the U.S. Census Bureau. And 66% of baby boomers are working past traditional retirement ages for a variety of reasons. Some feel they can’t afford to retire, particularly with the looming high costs of healthcare; others may choose to work longer to keep their brains active or because they fear the adjustment to a less structured lifestyle.

Older workers approaching full retirement age (which varies, depending on when they were born) where they can begin receiving 100% of Social Security, face some daunting decisions about Medicare, Social Security and retirement plans such as health savings accounts and 401(k)s — unchartered territory until this point in their lives. There are specific rules about contributions and withdrawals in retirement, and employers should help with the education process. Here are three ways to do so.

Break down the HSA rules from a retiree perspective. If you offer HSAs to your employees, it’s important they understand how HSAs work with Medicare: The IRS dictates that a person can’t contribute to an HSA if they’re enrolled in part of Medicare (Part A, Part D, etc.) However, they can draw on funds already in the account to pay for qualified medical expenses and premiums for Medicare Parts B, C and D (but generally not Medicare supplement plans or Medigap insurance premiums).


Importantly, your employees may be penalized for delaying Medicare, depending on the number of employees you have and whether you have group health insurance. These requirements may not be well known by your employees and should be communicated clearly.

Of course, because Medicare, Social Security and any retirement plans involve several layers of government rules and financial regulations, there are some tricky issues your employees need to know about. One is retirement “back pay.”

When employees sign up for Social Security at least six months beyond the full retirement age, they’ll receive six months of retirement benefit back pay. This is problematic if your employees contributed to their HSAs over the previous six months — they are liable for tax penalties on HSAs. Create an education strategy that includes this information for employees looking to retire, so that they can stop contributing to their HSA six months before retirement and avoid costly mistakes.

Help employees understand how all their benefits work together. Your employees have contributed their knowledge and skills to you; it’s important to help them understand their options as they work toward retirement. For those just a few years out from retirement, your education plan may include helping employees understand eligibility requirements for both Social Security and Medicare, as well as any penalties that might arise from applying late to Medicare.

See also: With little saved, employers and aging employees share same fear: Can retirement happen?

As your employees age, they are also eligible to contribute “catch-up” funds to HSAs, IRAs and 401(k)s in preparation for retirement. Your 401(k) partners and financial wellness resources can help employees assess their financial situations and prepare for retirement. For example, it’s a good idea to encourage employees who may have multiple 401(k) plans to consolidate them into one — this will make it easier to manage when they retire. They may ultimately roll these into an IRA to access additional investment options.

Maintain a focus on wellness. If you have a wellness program in place, take measures to boost participation and steer employees, especially older participants, toward healthy habits to help them live well and be productive leading up to retirement.

Wellness may extend outside of physical, emotional and mental wellness to professional development. Help them improve their retirement outlook by keeping job skills up to date so they are better prepared if they need to take on other employment to supplement their retirement.

For anyone nearing retirement age it’s a good idea to become acquainted with “Medicare and You,” the government’s official Medicare handbook. While each employee’s situation will differ, there’s no doubt that planning and education are key to a successful retirement strategy and, as an employer, you can support these efforts.


Loretta Metzger

Loretta Metzger

Loretta Metzger is a benefits consultant at Corporate Synergies.

How Honey Can Help You Stay Young

Honey is a great antioxidant. Studies conducted on the beneficial properties of honey have established that it protects the skin from the harmful effects of UV rays. Honey also helps in the rejuvenation of the skin. Free radicals resulting from the metabolism in your body when oxidized are responsible, along with other things, for aging. Being a natural and superb antioxidant, honey fights the free radicals and decelerates aging. You can either consume honey or apply it topically to reap its many benefits.

Honey has a high sugar content, moderately high acidity and therefore low pH and low protein quantity. Add to these its antioxidant property and the presence of Hydrogen Peroxide in it, and you have a wonderful anti-bacterial and anti-microbial agent in honey.

To stay, feel and look young, you should have maintained your face, your skin and your hair. They must have a good and young appearance. Honey will help you do this extremely well. You may not have either the time or the mood to spend a lot of money to go to a spa but that's okay because honey provides you with an easy and effective alternative.

Honey in history

Legend has it that even since the times of Cleopatra, honey has been used for enhancing and maintaining one's youthful looks and beauty. As you grow in age or when affected by exposure to unfavorable environmental factors, your skin tends to lose its elasticity, softness and supple character. Honey is a good natural product with excellent properties for restoring these very qualities to the skin. It has the capability of retaining and maintaining the moisture in the skin. Honey inhibits scaling and smoothes the wrinkles on the skin. Because of this, the skin looks naturally young.

Uses for honey

Mixed with some other things, honey can work as a facial mask, a hair conditioner and a skin clarifier. To make dry skin smooth, apply a mixture containing four tablespoons of honey and three tablespoons of milk. After about ten minutes, rinse the skin for a smoother look. Mashed apple mixed with five tablespoons of honey is good for tightening your skin. These mixtures can be topically applied anywhere, face, neck, arms or anywhere you need a healthy skin boost.

Of course, you can use also honey alone. Apply it directly on your skin when it is rough, scaly or dry. Leave it in place for a few minutes and then wash it off to find revitalized skin.

Home facial

A recipe for a home domestic consists of two egg whites and about three to four tablespoons of honey. You can make a paste out of these with the help of a little flour. Liberal application of the paste on your face and washing it off with lukewarm water after ten minutes or so will leave your face look squeaky clean.

Honey can be used as a hair conditioner too. Combine c cup of honey with c cup of olive oil and add a few drops of the oil of rosemary. Apply this to your hair and hair roots. Leave it for about 30 minutes and then rinse well. You may also use a good shampoo to wash your hair. You will be left with excellent condition hair.

Millennials, Baby Boomers to Fuel Historic Economic Expansion

Millennials, Baby Boomers to Fuel Historic Economic Expansion

$DIA, $SPY, $QQQ, $RUTX, $VXX

Monday, investment guru Ed Yardeni predicted millennials and baby boomers will help the US achieve its greatest economic expansion in history.

“They the baby boomers are increasingly becoming minimalists. They are trading down in terms of houses that they want to live in,

“At the same time, we’ve got millennials who are also minimalists,” he added. “Many prefer to rent and stay in the city, and not buy houses, and not even buy cars.”

Mr. Yardeni explained that the weaker spending should actually be considered a Bullish factor, because it helps prevent the US economy from overheating.

“Put it all together and you’ve got an economy that continues to grow led by consumer spending, but not in a fashion that suggests that a boom is going to lead to inflation, and a Fed reaction that leads to a bust,” he said. “So, all in all, I put it together as still a very favorable environment for stocks.”

Mr. Yardeni also has not been swayed by contagion fears sparked by Turkey’s economic crisis and global trade disputes.

“This all creates a lot of commotion on a global basis. It kind of makes the US look like an island of serenity, all things considered. I think this really favors investing in the US, as opposed to investing on a global basis,” he said.

“The earnings picture really has been phenomenally strong. I’ve been Bullish on earnings, and they coming in even stronger than I expected,” he noted.

“What the stock market cares about most is the business cycle,” Mr. Yardeni said. “As long as investors perceive that the US economy can continue to grow without a risk of recession, you get a Bull market.

Monday, the major US stock market indexes came in at: DJIA -125.44 at 25187.70, NAS Comp -19.40 at 7819.72, S&P 500 -11.35 at 2821.67

Volume: Trade on the NYSE came in at 726-M/shares exchanged

  • NAS Comp +13.3% YTD
  • Russell 2000 +9.1% YTD
  • S&P 500 +5.6% YTD
  • DJIA+1.9% YTD

Overall HeffX-LTN is Neutral to Bullish this market now.

Stay tuned…

The following two tabs change content below.

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

Millennials, baby boomers to help U.S. ink economic milestone: Yardeni

Wall Street veteran Edward Yardeni sees two key demographics giving stocks a boost now through at least next year: Millennials and baby boomers.

Trading Nation” on Friday.

“At the same time, we’ve got millennials who are also minimalists,” he added. “Many prefer to rent and stay in the City, and not buy houses, and not even buy cars.”

Less spending may seem counterintuitive, since spending accounts for around 2/3 of U.S. economic activity. However, Yardeni contended it’s bullish, because it helps prevent the U.S. economy from overheating.

“Put it all together and you’ve got an economy that continues to grow led by consumer spending, but not in a fashion that suggests that a boom is going to lead to inflation, and a Fed reaction that leads to a bust,” he said. “So, all in all, I put it together as still a very favorable environment for stocks.”

His thoughts came as the S&P 500 Index was logging its worst day of August. The drop came amid President Donald Trump’s decision to double the size of metal tariffs on Turkey, which created a currency crash there.

Still, Yardeni isn’t letting the latest geopolitical developments affect his bullish case.

“This all creates a lot of commotion on a global basis. It kind of makes the U.S. look like an island of serenity, all things considered. I think this really favors investing in the U.S. as opposed to investing on a global basis,” he said.

Yardeni has been one of the street’s most consistent bulls — turning positive a few days after the S&P 500 hit an intraday low of 666 on March 6, 2009. He sees no reason to start getting bearish now: Yardeni is maintaining his year-end price target of 3100, a 9 percent gain from current levels.

“The earnings picture really has been phenomenally strong. I’ve been bullish on earnings, and it’s coming in even stronger than I expected,” he noted.

And, if the economy continues to grow, next July will mark the country’s longest expansion in history — a milestone he believes is within reach.

“What the stock market cares about most is the business cycle,” Yardeni said. “As long as investors perceive that the U.S. economy can continue to grow without a risk of recession, you get a bull market.

Baby boomers still influence housing markets

They are the generation that changed the world and even though the leading edge of the generation has passed the 70-years-old mark, they’re not going away soon, says the Royal LePage Boomer Trends Survey.

“Don’t count them out yet – baby boomers will impact Canada’s housing market in a big way in the coming years, as another 1.4 million of this large demographic are expected to sell and buy real estate between now and 2023,” said Phil Soper, president and CEO, Royal LePage. “While the wave of older consumers will increase competition for condominium property in particular, there is no single type of home that boomers will be investing in.

“Our research does indicate that smaller cities and recreational areas will attract more investment than major cities. This large segment of the population views our big cities as generally unaffordable for retirement purposes.”

Baby boomers’ children will affect their decisions.

The survey found that 44 percent of boomers across Canada with children still at home expect them to move out between the ages of 21 and 25, while 21 percent expect them to leave between the ages of 26 and 30. A further 18 percent expect the kids to move out after the age of 30, with nine percent saying they expect them to leave after the age of 35.

“Our 2017 research into the largest group of first-time home buyers in Canada, which we call the Peak Millennials, showed many were roosting in the family nest well beyond the traditional age of exit,” said Soper. “With this work, we have confirmed that boomers are allowing children to reside at home well into adulthood. Yet they won’t stay forever, and when they go, the folks are going condo shopping.”

Boomers in Alberta prefer to stay in their homes and renovate rather than move to a new home, with 19 percent planning to buy a new home in the next five years, while 58 percent would prefer to improve their current home than move.

Those plans may change as the children leave home and retirement approaches.

The Royal LePage survey says 44 percent of respondents plan to move into a smaller home in their golden years. Meanwhile, 31 percent said they would consider downsizing when their children leave home. Fifty percent of Albertans, with children at home, expect them to move out by the time they turn 25 years old. Forty-five percent of those Albertans looking to downsize would consider a condominium for their next purchase.

“Boomers in Alberta vary between those who are quite affluent and those who are still working as a means of supporting themselves. Many of them are staying in their jobs longer than we previously expected,” said John Hripko, agent, Royal LePage Benchmark in Calgary. “Boomers with a financial surplus are choosing to stay in their larger homes for longer, but they’re also increasingly deciding to help their children put a downpayment on their first homes.”

Should Baby Boomers get a property tax break to move? The pros and cons of Prop. 5.

Please subscribe to us on Apple PodcastsStitcherSoundcloudGoogle Play and Overcast. 

Would it be a merciful end to the “moving penalty” or a giveaway to rich homeowners and real estate agents?

Proposition 5, which California voters will decide on this November, allows homeowners age 55 and up to receive a major break on their property taxes when they move homes. Sponsored by the California Association of Realtors, the initiative attempts to address a problem familiar to many Californians of a certain age: You want to move from your empty nest, but you’re scared of the new taxes you’d have to pay on a downsized property.

That dilemma is a byproduct of Proposition 13, the landmark 1978 initiative that capped how much local governments can levy homeowners on escalating home values. If you bought your home in 1988, you’re still paying property taxes based of the value of your home when the Soviet Union was still in existence. It’s a pretty great deal. But try to move into a different—and invariably more expensive—home at today’s prices, and your property taxes will jump dramatically. Those property tax bills could be tough for older homeowners on fixed incomes to afford.

“These are largely larger family homes,” said Steve White, president of the Realtors association. “If these folks were able to sell, then folks in (younger) generations would be able to purchase.”

The Realtors argue that Prop. 5 will induce more senior homeowners to sell their homes and buy new ones. Obviously that’s good for their commissions. But beyond allowing older homeowners to perhaps move closer to their children, the Realtors argue it would bring a flood of new homes to the market perfect for younger households starting their families.

Prop. 5 is opposed by local governments and public employee unions such as teachers and firefighters, who say the initiative is a costly giveaway to wealthy homeowners and the real estate industry. There are plenty of property tax protections already in place for senior homeowners who truly want to downsize. Because of a similar proposition passed decades ago, homeowners age 55 and up can buy a new home of equal or lesser value to their current property anywhere in their own county and retain their Prop. 13 property tax savings. Prop. 5 would allow senior homeowners to buy more expensive homes anywhere in California and still get a large tax break.

“What the real estate industry is really trying to do with this measure is turn the market and drive up prices so their end profit is really to their benefit,” said Dorothy Johnson, an advocate for the California State Association of Counties, which oppose the measure.

The Realtors could not have been pleased with the analysis Prop. 5 received from the Legislative Analyst’s Office, which voters will see included in their sample ballots this fall. It concludes that Prop. 5 would eventually costs local governments and schools $2 billion a year in revenue, and that the vast majority of Baby Boomers who would benefit from the initiative were likely going to move anyway. In other words, the initiative was not likely to induce a lot of people to move or result in lower home prices.

That’s partly why the Realtors have pursued a somewhat odd political strategy—while pushing for Prop. 5’s passage this fall, they’re already planning to put a very similar initiative on the ballot in 2020. That initiative would provide the same property tax breaks for older homeowners, but would also close some Prop. 13 loopholes to lessen the cost on local governments.

In this episode of Gimme Shelter,  Matt and Liam delve into the politics and policy of Prop 5. They interview Steve White, president of California Association of Realtors, and Dorothy Johnson, an advocate for the California State Association of Counties.

Baby Boomers Going Bankrupt At RECORD Levels! What Will Happen When the Pensions Disappear?



LOOK THROUGH MY BOOKS!

SUPPORT MY WORK:
PAYPAL:
OTHER:

—————————————————————————————————

MY FAVORITE BOOKS:

—————————————————————————————————

STEEMIT:
T-SHIRTS:

—————————————————————————————————

ℹ️Sources Used in This Video ℹ️

#retirement #401k #pension

Understanding "Income Purpose" Investing

After 45 years of investing, I've come to the conclusion that the equity (or growth purpose) market is a far easier medium for investors to understand than the safer, and generally less volatile, income purpose securities market. As counter intuitive as this sounds, experience supports the promise.

"Understanding" boils down to the development of reasonable expectations: just how do you expect the market value of your income purpose securities to react to varying market, interest rate, economic, political, atmospheric, and "other" conditions "… and , does it really matter?

Few investors grow to love volatility as I do, but most expect it in the market value of their equity positions. When dealing with "income purpose" securities, however, neither they, their guru / advisors, nor market commentators are comfortable with any downward movement whatever.

  • Not to make excuses for them, but most professional and media folk think in terms of the individual bonds and other debt securities that Wall Street markets to brokerage firms and other large investment entities. Bond traders hate to discount their inventory due to higher interest rates … it's bad for year end bonuses. But their bond market disaster is the individual investor's opportunity to buy the same amount of income at a lower price.

Most investors are also more receptive to loss taking advice on income securities than they are with respect to equities … always the effect of a "market value" rather than an "income production" focus … and a well kept Wall Street secret .

The list below describes some important characteristics and concepts involved with investing in income purpose securities. Familiarization with these will assist in the development of valid "performance" expectations. Doing so will also help develop an appreciation of this important (and somehow not too often mentioned) relationship: changing market values ​​(in either direction) rarely have any impact on the income being generated by the security.

  • Confucius say: keep your eye on the ball, you can not buy groceries with market value or total return, only income pays the bills … without depleting sacred capital

General attributes of income purpose securities:

  • They generate a predictable stream of interest, divide, rent, royalty or other income.
  • They pay income in specific amounts on specified dates.
  • Their risk of financial loss varies dependent upon security type, issuer quality, and liability, BUT, all normal income securities are considered far less risky (financially) than the common stock of their relevant issuing entities. State government paper is less risky; federal government issues carry no financial risk at all.
  • The purpose of the income asset allocation of an investment portfolio is the production of income in an amount large enough to insure: annual growth of income producing capital and annual growth of income production.
  • High dividend common stocks (utilities, etc.) are not included within the income purpose security definition, although they may be less risky than other equities.
  • Bonds, loans, and other interest bearing securities are issued by both corporations and government entities and have maturity dates upon which the principal is returned to investors.
  • Income securities that are guaranteed as to principal and interest, or protected by "safety mechanisms" of any kind always bear a lower yield than other similar securities.
  • Generally, fluctuations in market value have nothing to do with the financial viability of the security issuer. Most often, they are the result of anticipated changes in the direction of interest rates, or the tax code.
  • Any form of either market value or total return performance analysis in a predominately income purpose investment portfolio is counterproductive, at best … particularly when comparisons are made with any form of equity index.
  • Bonds, mortgages, notes, and other "debt" instruments are generally illiquid securities with wide price "spreads", and difficult to either sell at "statement" prices or add to from the marketplace.
  • Income closed end fund ports are liquid containers for illiquid securities, thus eliminating the major drawbacks of owning individual bonds, mortgages, loans, etc.
  • Higher interest rates (lower prices) are good for income investors because they produce higher yields from new (and existing) securities that are available for purchase.
  • Lower interest rates (higher prices) are good for income investors because they can provide "reasonable" profit taking opportunities on securities already owned.
  • A reasonable trading profit on an income purpose security is anything in the vicinity of "one year's interest in advance", keeping in mind that three 7s always beat two 10s.

Theoretically, income purpose securities should be the ultimate "buy and hold" security blanket within retirement income ports. But if you examine the average retirement portfolio, especially 401k portfolios, you would find a remarkable low "income purpose" asset allocation. This seemingly nonsensical behavior is as much the result of government regulation as Wall Street manipulation. For example:

  • The Vanguard Retirement Income Fund (VTINX) , with approximately $ 17 billion in assets, is one of the most popular and well-respected funds in retirement income ports, particularly 401ks. The five individual funds inside yield just 1.75% in actual spending money to investors … but they are dirt cheap.
  • A diversified portfolio of income purpose Closed End Funds (CEFs), with payment histories stretching back more than twenty years, would yield well in excess of 7.00% after somewhat higher expense (that the security owner never actually pays).
  • CEFs are never found in 401k plans and rarely appear in IRA and other retirement jurisdictions created by investment professionals; please tell me if you know why.
  • Confucius say: if you buy cheap, you get what you pay for

The focus of an income purpose portfolio needs to be: the amount of realized, expendable, income produced irrespective of market value fluctuations. The operative investment management objectives need to be: growing both the productive working capital and the spendable "base income" produced by the portfolio.

Wall Street has you believing that lower market values ​​are always bad and that higher prices are always good. This is the conventional wisdom we've all had thrust upon us for decades. But price volatility is the very nature of securities markets, the very reality that creates both buying and profit taking opportunities, particularly in income purpose securities.

  • Higher income purpose security prices mean lower yields, but also increased realized profit potential; lower income purpose security prices mean higher yields and buying opportunities. I see no bad or good; just the opportunity created by either scenario. (The same is true, incidentally, with Investment Grade Value Stocks.)
  • It is the inherent safety (ie, lower risk of financial loss) of income purpose securities (and IGVSs) that creates this almost perfect relationship. Price volatility is always good.

"It's OK, it's natural, every market value fluctuation is satisfactory" is what I've been singing for decades … particularly since since the creation of income CEFs. Rarely, even in the three major meltdowns of the past 40 years did any high quality company or government entity default, regardless of tremendous price fluctuations in all securities. Each time, the vast majority of CEF income payments kick rolling in, unscathed by the surrounding chaos.