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| Shoreline Wealth & Investment Management |
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Newsletter
November 2004 |
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The Stock & Bond Markets - 'Tis the Season
Turning $10,000 into approximately $330,000 or $15,000 is the result of applying a little known strategy called "seasonality." Between 1950 and 2002, if an investor deposited $10,000 into the stock market (i.e. S&P 500) every November 1, took it out on April 30 the following year, buried the balance under a mattress until November 1 later that year and continued investing and withdrawing on this schedule, the ending value would be about $330,000. If that same investor had instead opted to invest every May 1 and withdraw the money every October 31 and reinvested the remaining balance every year during the same time frame, the end result of that original $10,000 investment would only be about $15,000. A pretty compelling set of statistics. don't you think?
The Power of Consistency
Another statistic which might be important when looking for returns is noting how important consistency is for getting a great return on your investment. For example, if you made a one-time investment of $10,000 and earned 10% each year for 4 years, the ending value would be about $14,600. If, on the other hand, you earned 20% in year 1, 20% in year 2, -20% in year 3 and 20% in year 4, the end result would be $13,800. Despite only 10% per year for 4 years rather than 20% for 3 with a negative 20% on 1 year, a consistent 10% consistent provides the greater return on your investment.
CELEBRATING 24 YEARS
Since 1980, I have been providing financial advice to investors and I'm proud to say that our service and performance (see "Bottom Line" section on the right) continue to be superior to the market and our peers. Thanks for your support.
| Selecting an Advisor |
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 Warren Buffet, the most successful investor of the 20th century learned his craft from Benjamin Graham, author of several books including the legendary "Intelligent Investor." This has been recently updated by Jason Zweig who includes 16 key questions to ask your advisor and 11 an advisor might ask...
Read on... » |
| Retirement Investmenting - The Basics |
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 When it comes to investing for retirement, everyone has a different style and time line. So, how do you even begin to meet your retirement needs?
Full Story » |
| Estate Tax Update: Disinheriting Uncle Sam - Part 11 |
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 If you have direct (or indirect) responsibility for your company's retirement plan oversight, you need to be aware of the increasing enforcement of accountability by the Department of Labor and the IRS. We offer several solutions to bring your plan into compliance and reduce your liability.
Learn More » |
| Looking for a Speaker for Your Event? |
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 Shoreline Wealth & Investment Management has given presentations to Fortune 500 companies as well as many local groups and organizations. If you are looking for a professional presentation on topics ranging from investments to estate taxes to business or tax law, please contact us
Click here for more details » | |
| The Bottom Line |
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| This is where we provide the performance of our conservative, moderate and aggressive portfolios and compare these to the S&P 500 and NASDAQ Indexes. While they are an important consideration, performance is only a portion of the evaluation investors should consider when evaluating investment management. Other considerations include the risk taken to generate the returns, the quality of the service, the reasonableness of the fees and, more important now than ever, the integrity of the investment manager.
Find out more.... |
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email: cbloom@cfiemail.com
voice: 805.886.3624
web: http://www.swimllc.com/
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