2. Building Blocks of Life
Investment Objectives:
Preservation of Capital
Tax Benefits
Steady Income Stream
Growth
3. Block I: Preservation of Capital
Types of Municipal Bond Funds
Oppenheimer AMT-Free Municipals C Class
Ticker: (OMFCX)
Federal and AMT tax free
Monthly dividends yielding at 5.25% (accrued 5.40%)
1 year maturity
Face value; commission free*
Price: $6.97
5. Block II: Steady Income Stream
REITs – Real Estate Investment Trusts:
Equity, Mortgage & Hybrid
Minimize liquidity risks compared to ownership of
properties
REITs gives a strong dividend due to tax incentives
for the corporation
Slow Capital appreciation
Steady Monthly income payout
6. Block II: Steady Income Stream
ARMOUR Residential REIT, Inc. invests in hybrid
adjustable rate, adjustable rate and fixed rate
residential mortgage-backed securities issued by or
guaranteed by U.S. Government agencies or U.S.
Government sponsored entities such as:
Federal National Mortgage Association (Fannie Mae)
Federal Home Loan Mortgage Corporation, (Freddie Mac)
Government National Mortgage Administration, (Ginnie Mae)
7.
8. Price 7.00
52 weeks high 7.71
52 weeks low 5.40
177 millions outstanding
Average Vol. 3.7 million
Market Cap: 1.26B
P/E13.34 EPS 0.53
Div & Yield: 1.20 (16.90%)
10. Block III: Growth
Prominent stock – Pfizer
Pfizer selling divisions to focus on their core
business
Market cap: 171 billion
$11 Billion buyback for 2012
FDA advisory panel gives 90% approval on an
Arthritis revolutionary drug to be launched in
September 2012
$2 billion sales first year expectation (same as
Lipator)
Price target $29; long term 7/2013 at $35
11. What’s best for you
Type 1: Value Portfolio:
60% Muni 5.25%
10% ARR 17%
30% PFE 4%
Type 2: Moderate Portfolio
50% Muni 5.25%
20% ARR 17%
30% PFE 4%
Type 3: Semi Moderate Portfolio
30% Muni 5.25%
20% ARR 17%
30% PFE 4%
20% Trade stocks (long/short)
