To our subscribers
The month of March was once again a volatile month. However, all the major indexes did manage a gain from where they ended in February. All of the Income Planner portfolios save one, also gained in value and all the dividends (7.5%-9.5% annualized) that we expected to receive were paid out as we anticipated.
Since we began tracking from February 2, 2007, the Dow is down 2.4% at 12,354, the S&P is down 1.9% at 1,421 and the NASDAQ is down 2.1% at 2,422.
The Income Planner portfolio values since February 2 are as follows (with dividends included):
Portfolio Conservative Moderate Aggressive
$ 20,000 1.0% (-5.7%) 1.0%
$ 50,000 1.0% 1.0% 1.0%
$100,000 (-1.2%) .3% 1.4%
As you can see, the portfolios (except one) have been very stable, even though we have had some wild swings in the markets the last two months. This is exactly what we want to see happen. Typically if an investor would be using a financial planner, they would receive a quarterly statement rather than an update every month.
Since there isn't any way to know when an investor starts buying into these portfolios or parts of any, their returns may be more or less than what we see here. So the Income Planner portfolios are used as baseline and to show that having a high yield will serve us well. Since this is long term money, what happens on a month-to-month basis should cause us little concern. We are in these for the income they can provide us. Secondarily, we may or may not also get some capital appreciation over time.
The one portfolio that is out of line ($20k moderate portfolio) had one security that was beaten down unfairly. I believe that we will see it bounce back in the near future.
In the next update at the end of April, I will try to break down the numbers in more detail.
|
|