I am very happy to announce the launch of Sebetic Advisors, LLC. After a 33-year career as a corporate chief financial officer / financial executive with large Wall Street firms, and comprehensive research, I have developed an investment strategy for my retirement assets that I believe is substantially superior to competing products.
I will be investing the vast majority of my net worth in this strategy and will utilize advanced technology to offer the same strategy to clients. This will be the only product offered and I believe will be an excellent complement to investors’ existing retirement portfolios.
The strategy is Dividend Growth Portfolios for Retirement Investors and strives to provide clients with tax efficient current income that grows annually with inflation, and over the long term, a principal balance that increases faster than inflation. The following summarizes why I believe this strategy will provide greater investment income for clients in retirement at a low level of risk:
- A higher allocation to stocks can create greater investment income – since 1926 U.S. stocks averaged 10.2% annual return vs 5.5% for long term government bonds. Each dollar moved from bonds to stocks over a 30-year retirement period would have resulted in a 270% higher ending balance.
- Long term holdings can reduce risk – stock returns have exceeded bonds in 98.5% of the 30-year periods between 1926 and 2019, with the minimum 30-year holding period average annual return of 8.5% per year (this 30-year period started 1/1/29, the year of the onset of the great depression).
- A long term buy and hold strategy, coupled with lower costs, can dramatically increase after tax returns. A lower cost tax efficient stock strategy over a 30-year retirement can result in a 72% higher ending balance compared to a typical stock mutual fund.
- Investing long term in fundamentally sound companies can create substantial additional value.
I would love to present this strategy to you in more detail. If you are interested, please email or call me (firstname.lastname@example.org or (516) 754-2150) and we can set up a time to review in person (or via a Zoom call). I also offer a confidential no obligation retirement planning financial analysis.
Dividend growth portfolios for retirement investors
- A long term buy and hold strategy of high quality, dividend paying stocks
- Specifically designed for investing in retirement – pays monthly distributions in the first year totaling 4% of the opening investment balance and targets annual increases thereafter equal to inflation (can be re-invested if the client desires)
- A highly diversified portfolio – target 100 plus positions, diversified by sector, industry, country, company size and style
- Invest in companies that have:
- Strong histories of profitability and growth with good prospects for the same going forward
- Very healthy balance sheets – low levels of net debt or net cash
- A valuation level consistent with strong future long-term returns
- Deep fundamental analysis performed on each investment, calculation of estimated fair value and expected return over a 10-year holding period
- Equity investing is tax efficient – long holding periods defer recognizing gains / paying taxes and long-term capital gains and dividend income are taxed at a lower rate
- Low fee of .5% per year, and for qualified investors, an even lower base fee of .1% per year coupled with an annual performance fee of 1/3 of the excess return over the S&P 500
- Designed to protect against the most important risks facing retirement investors – failure to fund distributions for living expenses, failure to keep up with inflation and a permanent loss of capital
- Clients will open a brokerage account with Interactive Brokers LLC, where only they can direct deposits into and withdrawals out of the account. They then hire Sebetic Advisors to manage the portfolio. Interactive Brokers is a financially strong, globally recognized technology-oriented brokerage firm.
Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. Source for all return data is “2020 Stocks, Bonds, Bills and Inflation Yearbook”, Roger G Ibbotson and Duff & Phelps. For our full disclosures, click here.