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Health & Fitness

Personal Finance: Retirement Planning and investing in 2012

Wall Street and the Media benefit from a distinct set of public beliefs and behaviors. Don't give it to them. The "Happiness Dividend" comes from knowing what is really going on.

Jonathan Deyoe, CPWA, AIF is founder of DeYoe Wealth Management, a Berkeley, CA-based wealth management firm whose primary focus is to help clients pursue what he calls “The Happiness Dividend.” He predicts that 2012 will be a banner year for his Berkeley neighbors who refuse to be frightened by economic news. Mr. DeYoe expects that those who stay the course with their well-considered financial plan and investment portfolio will continue to see their retirement incomes grow.

In a recent presentation at the Northbrae Community Church in Berkeley, DeYoe outlined his vision for 2012.  He noted that in light of a year highlighted with earthquakes and Arab Spring, the best economic news of 2011 was the continued strength of the U.S. corporate sector. What the media calls the “lost decade” in economic growth was actually only “lost” in terms of price appreciation. In all other categories – revenues, earnings, dividends, earnings yield, and cash positions – there has been steady growth over the past 12 years. In the year 2000, the S&P 500 earned $51.3 per share and paid $16.27 in dividends. By 2011, earnings had increased 73 percent to 97.05 and dividends were up 60 percent to 26.02.  Somehow, this is entirely lost in reporting.

“Building a retirement income nest egg is the dominant long-term goal for most of our clients, and if investors did nothing other than invest in the S&P 500 and stay there, their income would have increased by 60 percent during the ‘lost’ decade,” said DeYoe. “That’s clearly ‘lifestyle sustaining’ for any income seeking investor, and I anticipate that trend will continue into the foreseeable future.”

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DeYoe also noted that the ongoing value of great U.S. companies is a factor that the media and markets often overlook: “In 2011, the biggest news story was the dithering of politicians in the U.S. and overseas, and the effect of excessive government spending without the tax revenue to sustain it,” DeYoe added. “I expect there will be more economic panic, a country or two may leave the EU, and there will be more foreclosure questions here at home. However, I believe that those who invest in great companies will continue to see an increase in their revenues, earnings, and dividends.  Understanding what is really going on pays us the Happiness Dividend.”

For more information, visit www.deyoewealthmanagement.com and perhaps subscribe to our Weekly Commentary.

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* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in an index. Consult your financial professional before making any investment decision.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results.

Jonathan K. DeYoe, AIF® & CPWA® is a registered principal with and offers securities and investment advisory services through LPL Financial, a registered Broker/Dealer. Member FINRA/SIPC and a Registered Investment Advisor.

 

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