Generating a Rising Supplemental Income Stream in Retirement*

by Mark Burnam – Director of Client Services at The Second Half Team

Today we’re going to introduce you to the concept of dividends and how we help create a rising supplemental income stream for your retirement via our "Wealth With Dividends Strategy." *

First of all , what is a dividend? Well, when Bonds/CD’s/money markets pay you income, it is called interest. When you own shares of a company’s stock and they pay income it’s called a dividend.

However, not all companies pay dividends – Amazon, Facebook, Google, Netflix they don’t pay a dividend currently(a/o 9/30/20), but, Apple and Microsoft do.  For us to own a company for you and our clients in our Wealth With Dividends Strategy - the company MUST pay a dividend.    

Companies which have consistently paid dividends over time are some of the strongest and most financially stable companies out there, like a Johnson & Johnson for example.

While a dividend payment is only one sign of a company's strength, inherently a company which is increasing its revenues, cash flow, earnings, profitability, and dividends over time should be worth more in the future and that is obviously one of our goals for you.   

However, we’re not just looking for companies that simply pay a dividend, let alone a steady dividend --  our team seeks out and hand picks a core group of roughly 36 companies diversified in the 11 different sectors of the market which are also steadily INCREASING their dividends over time. 

What this means to you, is an increasing income stream (which could be supplemental or primary) which you can use currently or in the future.*  You liked getting raises while you were working, well, wouldn’t we all like them in retirement as well?  Of course we would!     

Our goal is to increase your income on average around 10% a year over time, kind of like getting 10% raises while you were working -- or having a "10% COLA" for you collecting a pension. Wouldn’t that be nice? *

Our goal is to double your income stream about every 7 or 8 years which you can then spend monthly, quarterly, annually, take it as needed, don’t take it – and without touching your principal.*

Listen, hot stocks, market fads come and go, but if you wish to retire safely in retirement, a rising cash flow income stream is king. 

Your costs aren’t fixed, just look at healthcare -- neither should your returns or your income in retirement.

Call us at The Second Half Team at any time to discuss this further.  **

Stay safe -- have a great day!

* This article is intended to be an educational ABC's piece on the basics of our Wealth With Dividends Strategy and are not promises or guarantees of financial security. While The Second Half Team is working with 500+ First Responders (and more) at 200+ departments/agencies around Florida we are independent of and not affiliated in any way with the Florida Retirement System (FRS) and hence any/all information provided by the Second Half Team has not been approved or endorsed by FRS or any Chapter 175 pension plans/board members/or otherwise. Past performance is not a guarantee of future results. This article is for informational or client communication purposes only and is not a solicitation or recommendation to buy or invest in any product or service. Investment in any financial instrument can carry significant risks. Past performance is not a guarantee or indication of future results. Investors are reminded that investing involves risk, including the possible loss of the principal amount invested. You should carefully consider the investment objectives, risks, charges and expenses of Swaine & Leidel Wealth Services, LLC, dba the Second Half Team (the "Firm") before investing. Information on the Firm and its advisors can be found on SEC's website https://adviserinfo.sec.gov. The CRD number for the Firm is 163454. Investment advice is provided by Swaine & Leidel Wealth Services, LLC, dba the Second Half Team, and SEC Registered Investment Adviser. We are not CPAs or Tax Advisors – you should consult with your CPA or tax advisor regarding your particular tax situation. We are more than happy to discuss with them as well if you so desire. 

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