Dear Towerpoint,

My smile could not have been bigger when I heard her say it. "Don't forget about the dividend, Daddy."

For obvious reasons, I was very happy and proud to hear these words come out of the mouth of my 11-year-old daughter, Josephine. She and her brother, Henry, are paid their weekly allowance on Monday mornings, and in addition to compensation for the regular jobs and chores they do around the home, they both also receive a weekly dividend from the shares of "Eschleman Corp." stock they have accumulated from the tooth fairy over the past few years.

If you’d like to read more about how my wife and I are teaching our kids about money, you can read one of my earliest blog posts HERE.

While the company may be fictitious, the lesson Josephine has learned is very real - income is important. Be it an interest payment from a bond, or a dividend payment from a stock, the compounding power that comes through receiving regular cold hard cash from your investments is oftentimes overlooked or discounted. We urge you to not make this mistake. Not only do interest and dividends help to buffer a portfolio during a market decline, but they also help shorten the time it takes for a portfolio to recover, assuming that income is reinvested.

Simple conclusion: Income is an extremely important driver of total return.

Focusing on investment income is by no means a new concept or news flash. But we are confident that by doing so, the probability of having longer-term success in growing and protecting your net worth increases significantly.

And speaking of news flashes, the 24/7 information cycle continues to churn and hum, the past two weeks being no exception:

Regarding more local Towerpoint Wealth news, our Facebook page continues to be very active, with fun posts, information, and photos. See what's going on and follow us HERE!

Lastly, we also encourage you to take three or four minutes to review the curated content found below, highlighted by:

  • Towerpoint Wealth's August, 2018 monthly market commentary, Everybody Wants Some... I Want Some Too!
  • Our Director of Tax and Portfolio Planning, Steve Pitchford, had his well-written article, Staying Cost-Conscious When Building Portfolios, published in Financial Planning magazine.
  • We have adopted brand new tax planning software from Bloomberg, helping us more accurately and efficiently show clients the possible tax consequences of various side-by-side financial scenarios.

The world remains a complicated place, and we encourage you to call (916-405-9140), email (, or Tweet (@twrpointwealth) with any concerns, questions, or needs you have. We continue to be here for you, and look forward to connecting with, helping, and being a direct, fully independent, and no-strings-attached expert financial resource for each of you.

- Joseph and the Towerpoint Wealth team

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