Welcome to the AnBro Dynamic Compound Portfolio
JSE Code: ANCOMP
Many people when planning for retirement worry about living off their investments in a way that doesn’t accelerate the depletion of their savings and wealth.
One strategy is to ensure that your investments themselves generate significant cash flows. These cash flows if, extensive enough, can be used in multiple ways.
Firstly, during your accumulation or savings phase, these cash flows can be used for re-investment which allow for accelerated savings rates as the power of compounding kicks in. Over long periods of time, the effect of growing cash flows reinvested alongside rising share prices make for returns which can turn out to be quite breath-taking.
Secondly, during your retirement phase the reinvestment of cash flow can be halted and the actual flow of cash from your portfolio can be redirected to your bank account to cover living expenses. With enough time and compounding some people may find themselves in the envious position where cash flows earned can replace the salary or income foregone by moving into retirement, without touching the capital sum accumulated over their working lives.
What are you buying?
The primary aim of the AnBro Dynamic Compound Portfolio (JSE Code: AnComp) is to invest in companies that pay dividends which are higher than the average of the S&P500. The portfolio yield before costs is targeted as 4% or greater per annum in the currency of investment. These cash flows are then REINVESTED back into high yielding equities with the aim of compounding growth AND income.
Who is this aimed at?
This portfolio is aimed at long term investors that are interested in investments which generate and return significant amounts of cash flow via dividends, which can in turn be used for reinvestment and compounding over long periods of time.
Investment Process
We work hard and save hard, and we really look forward to the times we get to put our feet up and relax. However, the realisation that the 9-5 beckons is always with us. Whether you work for somebody or for yourself we are acutely aware of the fact that down time is limited and the requirement to get going again lingers over us. It’s precisely for this reason that we save for retirement, hoping to accumulate sufficient savings which can see us through our golden years when we can no longer or chose not to work any further.
The search for passive income is oftentimes the bedrock of any retirement or savings strategy. ‘Earning money while you sleep’ is a very attractive proposition. Various strategies exist which allow investors to benefit from this and when reinvesting this passive income back into the strategy compounding accelerates at a pace which can be quite hard to believe.
Various investments exist which allow you to capture this cash flow.