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Financially Speaking. First Quarter 2012 Seminar February 9 th 2012. New Investment Strategy. Combination of low volatility equity positions while maintaining the ability to move fully into wealth preservation mode if the market conditions warrant. Screening Criteria.
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Financially Speaking First Quarter 2012 Seminar February 9th 2012
New Investment Strategy Combination of low volatility equity positions while maintaining the ability to move fully into wealth preservation mode if the market conditions warrant.
How the Stock Screener Works 7,786 Stocks -3,859 Stocks 3,927 Stocks -1,874 Stocks 2,053 Stocks -295 Stocks 1,758 Stocks -86 Stocks 1,672 Stocks -479 Stocks 1,193 Stocks -596 Stocks 597 Stocks -301 Stocks 296 Stocks -96 Stocks 200 Stocks -26 Stocks 174 Stocks
Hormel Balance Sheet at Fiscal Year End Current Liabilities to Current Assets Ratio 0.39 Total Liabilities to Total Assets Ratio 0.37
Low Volatility Hershey and Consolidated Edison have the same return But get to it very differently
Low Volatility Stock Allocation Low volatility individual stock positions Low Vol Stock 1 Low Vol Stock 2
Tax Implications of new stock strategy • Under current tax laws holding dividend paying stocks is a very tax efficient way of investing. • Portfolio is designed to take advantage of long term capital gains rates being lower than short term capital gains rates. (15 %) • Tax rate on Dividends is currently 15 % • As with all tax laws the current laws are subject to change a may materially impact the tax efficiency of the dividend investing strategy.
Non Low Volatility Stock Allocation Unconstrained allocation (can use mutual funds and ETFs to enhance return or reduce risk)
Allocation Breakdown Aggressive Allocation Growth Allocation Moderate Allocation Income Allocation