Bridgeriver Advisors LLC - January 2021

Bridgeriver Advisors LLC - January 2021

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JANUARY 2021

Creating Your Own Paycheck

New Year, new paycheck? It’s possible with dividends. For many, dividends can serve as a source (or additional source) of income. It starts by investing in a dividend-paying company that kicks out higher-than-normal dividends. If you invest in the right companies, it’s completely possible to use the dividends to supplement your retirement income. It’s nice because you don’t touch your principle. That way your money can last indefinitely. All you have to do is only touch your dividends. To make it happen, it starts with a dividend-focused portfolio. You fund it by purchasing and owning a certain number of shares that each pay out dividends. The exact number of shares will depend on your goals and interests. One of the great things about dividends is that they don’t really change much in response to market fluctuations. You’ll always have the same number of shares you initially purchased — that number will never change unless you want it to. Let’s say you build a portfolio with $200,000 worth of shares from dividend- paying companies. The $200,000 value will go up or down based on market fluctuations, but the dividends aren’t derived from that. They’re based on the number of shares you own. When people think of dividend-paying companies, one example that comes up fairly often is Verizon. They pay out between 4% and 5% on their dividends. However, there are companies that pay out closer to 7% or 8%.

but generally speaking, the investors take priority. This is another reason dividends are so attractive to people wanting an additional income stream in retirement. Investing in dividend-paying companies does come with a downside — for the most part, these companies do not represent a diverse spread. This type of income investment generally centers on a very select number of industries, especially when you start talking about companies that pay out higher percentages. Under that umbrella you’ll usually find mortgage businesses, real estate firms, and energy companies. If you’re interested in funds that pay out higher dividends, there are options. You can often find higher paying dividends in mutual funds and ETFs. I tend to prefer ETFs as they are lower in fees. I recently put together a portfolio of 10 ETFs, representing about 1,800 companies. Again, while these companies only represented about three to four industries, there was a wide spread of companies, so there was at least some level of portfolio diversity. Some ETFs pay monthly, others pay quarterly, and then there are those that pay even less frequently. If you’re thinking about creating an income stream in retirement using a dividend-based portfolio, you’ll want to focus on ETFs that pay out more frequently. Then, you can set your account up so the dividends are paid right into your checking account and that’s it!

One question I hear frequently is, “What is the difference between a growth portfolio and a dividend portfolio?”

A growth portfolio is designed for investment in growth companies, as the name suggests. Growth companies use their profit to reinvest within their own company. They use that money to expand the company, hire, buy new equipment, and so on. You might see higher growth but don’t look to it for high dividends. You might get closer to 1%–2% dividends in those types of companies. Dividend companies take their profits and kick a larger portion of that money back to its pool of investors. They don’t necessarily use their profits for growth, though they can or will allocate smaller amounts toward that,

If you have further questions about dividends, investing in dividend-paying companies, or setting up a portfolio that supplements your income in retirement, give me a call and let’s talk!

-Dan Casey

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DON’T GET LOST IN THE SAUCE THE 4 BEST COOKING AND TRAVEL SHOWS

‘Anthony Bourdain: Parts Unknown’ If you’re not familiar with the late Anthony Bourdain, you’re missing out on one of the most influential,

Streaming services are booming right now, and there’s no shortage of entertainment between HBO Max, Netflix, Amazon Prime, Hulu, Disney+, and more. But the important question is this: What are the best binge-worthy cooking shows? Here are four streamable culinary shows you’ll love. ‘The Chef Show’ Get cozy at home and turn on Netflix to watch Chef Roy Choi, the man responsible for bringing the food from the movie “Chef” to life, on “The Chef Show.” You’ll get incredible home-cooking tips while enjoying appearances from your favorite celebrities, like Tom Holland trying oysters for the first time. This show travels all over the world to explore recipes and honor the tradition of sharing good food. Four seasons are out now!

most epic adventures you can imagine — ranging from the icy waters of Alaska to the plains of New Zealand — all while learning to cook the local food along the way. The latest two seasons are

internationally lauded chefs of the past few decades. “Anthony Bourdain: Parts Unknown,” one of his longest-running TV shows, filmed 12

available right now!

seasons over seven years, and all 12 seasons are streaming on HBO Max. The show follows Bourdain as he travels and discovers little-known places in order to celebrate diverse cultures by exploring their food and dining rituals. ‘Gordon Ramsey: Uncharted’ Want something a little more recent? Hop on Disney+ to watch Chef Gordon Ramsey of “Hell’s Kitchen,” who has seven Michelin stars, leap out of helicopters to take some of the

‘Great Chefs of New Orleans’ Whatever your favorite cooking show may be, it was likely influenced by this classic. One of the oldest cooking shows in the U.S., “Great Chefs” has aged like fine wine. In this series, you’ll meet some of the best chefs in New Orleans and learn how they create and prepare an appetizer, entree, and dessert. Two seasons are available to Amazon Prime members!

WHAT DOES IT TAKE TO BE ‘DERMATOLOGIST APPROVED’?

If you have aging or sensitive skin, you probably live by the term “dermatologist approved” when you’re searching for the best skin products. However, have you ever stopped to wonder what that term actually means and what it takes to even become “dermatologist approved”? How strict are the regulations on the many products you use on a daily basis?

And if you think any products labeled as “hypoallergenic” are any safer, you’d be wrong. The Food and Drug Administration’s website clearly states: “There are no Federal standards or definitions that govern the use of the term ‘hypoallergenic.’”

However, that’s not to say all brands that work with dermatologists are malicious liars. Some brands do hold themselves accountable to their claims of professional approval. For example, many CeraVe

The truth is that there are currently no legal restrictions on what can be “dermatologist approved” except that it should be approved by a dermatologist. It doesn’t even matter if they test the product once or a hundred times — the product can get the label slapped on as long as it was approved. Because of this lack of regulation, the testing dermatologist may not consider the health implications of ingredients in any given product. However, certain ingredients can have serious long-term effects on your health and skin, such as parabens (may cause endocrine/hormone disruption), retinol (linked to tumor growth and DNA damage), and hydroquinone (potentially cancerous and toxic for your organs).

products are developed with dermatologists and are approved by associations like the National Eczema Association.

Ultimately, talk to a dermatologist you trust. They should have a good sense of what your skin needs, what’s best for your long-term health, and what products actually work. Skin care marketing thrives off the fantasy of “fixing” your skin problems instantly, and, sadly, there’s a lot of room to stretch the truth. Make sure to do your research before deciding to buy!

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Gucci and Marc Jacobs aren’t the only names in the fashion game now. While the pandemic has left a significant mark on the luxury fashion industry, there are brand-new companies that are thriving and adapting to 2021 needs and trends faster than anyone else. ARJÉ If you’re looking to add timeless classics to your closet, ARJÉ’s products might be what you’re looking for. As a see-now, buy-now luxury brand, the company releases three collections a year, and you can buy pieces as soon as two weeks after the first showing! Husband-wife duo Bessie Afnaim Corral and Oliver Corral run the brand. Check out their website at Arje.com to discover beautiful luxe shearling coats, oversized knits, and wardrobe essentials for both men and women. Cecilie Bahnsen As a graduate of the Danish School of Design and freelancer at Christian Dior, Cecilie Bahnsen is an award-winning designer who has taken the fashion world by storm. Traditional techniques inspire her decadent yet elegant designs, but she uses them in new, innovative ways. Bahnsens’s embroidery and fabric combinations demonstrate that she is not only accomplished

in design but also excels in craftsmanship. Look at her latest creations at CecilieBahnsen.com .

BRAND-NEW TRENDING LUXURY BRANDS IN 2021

Peter Do Looking for a simple yet stunning outfit? Vietnamese designer Peter Do’s designs are the epitome of minimalist elegance in 2021. Even the website’s bio is humbly understated: “The brand has always put family first through its commitment to creating a brand that is rooted in kindness and mutual respect.” Once you see their beautiful, flattering boots, jackets, and unique outfit accessories, you’ll understand why the restraint perfectly suits this designer label. Take a peek at PeterDo.net . Whether you’re a fashion enthusiast or someone curious about what’s “in” right now, you’ll adore the designs by these new luxury brands. Any piece from these brands could be a beautiful gift in the future or just a wonderful little treat for yourself, especially after a year of such uncertainty and change.

ARJÉ

HAVE A LAUGH

Slow Cooker Chicken Casserole

Inspired by GoodHousekeeping.com

Ingredients

•

8 chicken thighs or drumsticks, lightly salted

•

1 lb potatoes, peeled and cut in large chunks

• • • • • •

1 tbsp olive oil

• • • • •

2 garlic cloves, sliced 14 oz chicken stock

1 tbsp all-purpose flour 1 onion, finely sliced 2 celery sticks, thickly sliced

1 sprig rosemary

Finely grated zest and juice of 1/2 lemon 1/4 cup fresh parsley, finely chopped

2 carrots, thickly sliced 1 leek, thickly sliced

Directions

4. Transfer vegetables to the slow cooker and add the stock, rosemary, and lemon zest. 5. Cook on high for 2.5–3 hours or until chicken is tender. 6. Check seasoning and add lemon juice to taste. Top with parsley before serving.

1. In a large frying pan, heat oil and fry salted chicken on high until brown. 2. Transfer chicken to the slow cooker. Add flour and stir. 3. In the frying pan on high heat, fry the onion, celery, carrots, leeks, and potatoes until lightly browned. Add garlic and fry for 30 seconds.

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INSIDE This Issue Here’s How to Create Your Own Paycheck in Retirement Don’t Miss These Cooking Shows! What Does It Take to Be ‘Dermatologist Approved’? Brand-New Trending Luxury Brands in 2021 Slow Cooker Chicken Casserole How Habit Tracking and Daily Resolutions Could Transform Your Life

HOW HABIT TRACKING AND DAILY RESOLUTIONS COULD TRANSFORM YOUR LIFE

Yearly resolutions are so last year … if they’re your only resolutions, that is.

European Journal of Social Psychology asked people about a simple habit they wanted to form, like drinking water at lunch or taking a walk before dinner. They found that the average amount of time it took before the action became automatic was 66 days! Don’t be too hard on yourself if you miss a day, but know that sticking to a new habit is serious work, so starting small might help you out. Another important aspect of forming new daily habits is rewarding yourself. Bad habits, like smoking, have an inherent reward. However, healthy habits can have rewards too! Try consuming a bit of dark chocolate after a workout or treating yourself to a fresh beverage or relaxing to a podcast after tackling an important task. Find ways to reward yourself, and you’ll be more likely to stick to your new habit. Certain daily resolutions don’t have to be related to exercise or diet to majorly improve your life. For example, having a gratitude journal might boost your long-term happiness by 10% and improve your blood pressure. Don’t hesitate to improve your quality of life! Just start small, and you’ll be amazed by how far you’ll go.

Having long-term goals isn’t a bad thing, but do you have a daily plan to reach them? The huge boost of motivation in January isn’t always enough to sustain you all year long. That’s why there are major benefits to starting new healthy habits, whether you increase your weekly exercise time, eat healthier foods, or work on getting better or more sleep.

Luckily, sticking with these habits might be as easy as making daily resolutions to complement your yearly goals.

BJ Fogg, a Stanford University professor and author of “Tiny Habits: The Small Changes That Change Everything,” notes that tiny habits can make a new habit easy to implement into your daily ritual. For example, taking a short daily walk could lead to an exercise habit, or keeping an apple in your bag every day could encourage healthier snacking.

It’s important that you stick with it because habits take a long time to create. One study published by the

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