Frederick W Rosenberg JD

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    fredrosenberg45@optimum.net

    973-761-8866

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    Are You Cannibalizing Your Assets?

    If you currently receive monthly distributions from an equities portfolio or fund through an automatic withdrawal plan, chances are you're doing just that! By today's standards 4% annual distributions seems to be the limit for sustainability of a portfolio. The dividend yield on the SP500 is 1% leaving a 3% annual cash shortfall. That shortfall is made up through monthly share liquidations regardless of performance. Look at it this way, automatic withdrawal plans liquidate

    Sequence Risk may be a Retiree's Biggest Risk Overall.

    "Sequence Risk" or "Sequence of Return Risk" applies to equity accounts burdened by fixed distributions. If Negative or even flat returns occur in the early years of withdrawals, long-term sustainability of the distributions will be permanently impaired. In short, lose money early and you will run out of money years before you planned. This is called Sequence of Return Risk and it only applies to accounts in distribution like retirement accounts. Google the term for broad

    FOMO-Investing

    I have spent decades working within the financial industry and have learned some extremely valuable lessons, chief of which is, Risk is generally misunderstood. For example, diversifying an equities portfolio does not hedge against Market Risk, but it does hedge against Sector Risk. When the market collapsed in 2008-9, diversified portfolios declined between 35% and 50% leaving many investors stunned. So what kept investors in the market during the worst of times? Did "stayi

    Frederick W Rosenberg JD

    fredrosenberg45@optimum.net

    973-761-8866

    27 Village Green Ct
    South Orange, NJ 07079
    USA

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