In this episode of The Financial Hour, Kentucky retirement planning strategists Tom Dupree and Mike Johnson discuss controversial investment strategies that are delivering strong returns for their clients. From tobacco stock investment opportunities to the hidden risks of alternative investments in 401 (k) plans, this discussion reveals why contrarian investing and local financial advisor expertise often outperform Wall Street’s mass-market approach.

Despite years of negative sentiment, tobacco stocks continue generating impressive returns through strategic dividend investing. As Tom explains,

“We do have some investments in tobacco stocks. And for years, we’ve been told the category is going away. Don’t touch it. Stay out. But if you looked at the financials of the companies, they were incredibly profitable.”

The tobacco industry is rapidly transforming into diversified nicotine companies, moving away from traditional cigarettes toward:

Key Financial Metrics:

“The delivery of nicotine is over the long term, almost certainly moving away from what they call combustibles… to vape and pouches,” notes the discussion, highlighting the industry’s strategic pivot.

The discussion reveals fascinating market dynamics between vice stocks:

Declining Alcohol Consumption:

Rising Nicotine Investment Appeal:

Trump’s recent executive order allowing alternative investments in 401k plans creates both opportunities and significant risks for retirement savers. The legislation permits plan sponsors to include:

The team identifies critical concerns with private equity in 401k plans:

Major Risk Factors:

“The problem with private equity is the lack of liquidity and fees,” Tom emphasizes. “You cannot do switching between a private equity fund and another private equity fund, because they don’t price it daily.”

For educators and institutional employees, TIAA Traditional annuities present significant challenges that many don’t discover until retirement.

“Those were sold for years to educators like it was the safe way to go. And it has cost a lot of people, a lot of appreciation.” 

Action Steps for TIAA Traditional Holders:

The episode contrasts personalized portfolio management with mass-market investment approaches, highlighting key advantages of working with local financial advisors:

Core Principles:

“We’ve kind of crafted the portfolio to do dividends and moderate to medium growth. But in order to do that, you have to buy things that people are sometimes pitching out the door,” Tom explains.

Unlike commission-based advisors, fee-based retirement planning provides:

Don’t let hidden investment risks derail your retirement plans. Whether you’re dealing with TIAA Traditional complications, exploring alternative investments, or seeking better returns through contrarian strategies, Dupree Financial Group provides the local expertise Kentucky residents need.

Take Action Today:

📞 Call: (859) 233-0400

“You’ve got to get more familiar with your retirement plan. It’s your money. You better figure this out either with an advisor or on your own. It’s a little easier with an advisor.”

The post Why Tobacco Stocks and Alternative Investments Are Shaking Up Kentucky Retirement Planning Strategies appeared first on Dupree Financial.