Appreciating Income is the Thing To Do
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Topics discussed:\\nThe end of the year is a season when I conduct a lot of review meetings with clients. Along with discussing holiday plans, sharing updates on our families, and so on, it\\u2019s the perfect opportunity to do some year-end tax planning, review how investments have fared over the year, and to catch up on any other planning items we are working on. It\\u2019s also a great opportunity to itemize our goals and notate tasks that we\\u2019d like to get completed in the coming year.
\\nWhile these client meetings are never exactly the same, some themes come up time and time again like that of the math behind \\u201ctotal return.\\u201d I\\u2019ve found myself writing this equation down with a sharpie in numerous client conversations: Total Return = Appreciation + Income.
\\nI know, it\\u2019s simple. It almost seems silly to mention, but there is so much behind this simple equation that I think it\\u2019s worth discussing. I\\u2019ll use the example of three areas most people are familiar with as it relates to their assets and the value they derive from each of them \\u2013 Real Estate, Stocks, and Bonds.
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