Published Fri, 24 Jun 2016 08:11:49 -0400 on Seeking Alpha
Editor's Note: SA's senior editor for financial advisor content tapped Kevin Wilson, a regular contributor and a professional financial advisor, to answer a question from "Mander," who, in commenting on an article, wanted to know how to secure income while preserving capital in today's markets. Wilson's response follows. Submit your own questions to senior editor Gil Weinreich (email@example.com).
A question of general interest from a reader called "Mander" seems well worth exploring in this time of great uncertainty and potential crisis. "Mander" asks: "…how [does one] avoid market crash exposure while still finding enough income to support retirement? What (outside financials) can one do to source income? Like investment real estate, small business, micro financing?"
These are broad questions that are best approached first in terms of risk, and then in terms of income. The first issue is to determine the tactical allocation strategy that is reasonable to adopt in retirement when one is expecting a major market downturn. As I have written elsewhere, I think preparing defensively for a market downturn is in order; there is abundant evidence that a significant drawdown could occur in the next few months or quarters. Valuations aren't as extreme as in 2000, but are worse than in 2008 (Chart 1). Measuring from the low of last week, the market itself has been flat since late November of 2014, with high... Read more
|Stock name||Last trade||P/E||Earnings/Share||Dividend/Share||Dividend yield|
|H&Q HEALTHCARE INVESTORS||19.46||0.0||0.00||1.82||9.45|
|NUVEEN S&P 500 BUY-WRITE INCOME FUND||12.92||0.0||0.00||0.00||7.19|
|ISHARES S&P US PREFERRED STOCK INDEX FUND||37.48||0.0||0.00||2.08||5.58|
|ISHARES DOW JONES SELECT DIVIDEND INDEX FUND||98.07||0.0||0.00||3.37||3.48|
|SPDR S&P DIVIDEND ETF||99.42||0.0||0.00||2.42||2.46|
|ISHARES BARCLAYS AGGREGATE BOND FUND|
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