At DeSimone Investments, we understand that goals do not happen without strategic thought and objectives set across a series of evaluated milestones.

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The strategy for clients already retired, or within 10 years of retirement, is to build a diversified dividend/ interest paying portfolio that will support their retirement needs, without ever having to withdrawal any of the principal.  Once implemented, our clients can remain confident that their portfolio will continue to generate dividend and interest income, regardless of market volatility.

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However, dividend/ interest income does not tell the entire story; our overall focus is still on Total Return.  We look to invest, the Equity portion of our client’s portfolios, in dividend paying individual stocks we believe to have the highest probability of capital appreciation.

 

We at DeSimone Investments create dividend/ interest/ synthetic dividend¹ goals for each of our clients.  On a quarterly basis we compare the actual income generated vs. our projections and share the results.  This is our way of showing accountability and commitment to the retirement goals of our clients.

 

By choosing not to create a dividend/ interest paying portfolio, investors will be forced to make withdrawals against their principal, which can be an especially scary scenario during times of market turmoil.  If the market does not generate returns in line with its historical levels, dipping into a portfolio’s principal translates into leaving less for your beneficiaries or worse, running out of money during your lifetime. 

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¹When the market is deemed to be overpriced, we create additional income by selling cash covered puts and covered call options.  In essence creating a synthetic dividend which creates even further income potential for our client’s portfolios