Steve's goal is to help you achieve true income independence through proven, non-traditional investment strategies. Stay ahead of market trends, take advantage of timely promotions, and discover reliable methods to secure your financial future, no matter the market's ups and downs.
So How Are You Doing?
|
For me, 2024 is developing into a best-ever total income year, with profit-taking exceeding the "six-months of distributions" level (total realized, in-my-pocket, income of about 14% through September). Those of you who started the Income Focused Investing program recently should be doing equally as well or better, even with pulling the trigger on profits a bit later than I do. Isn’t it great having hundreds of suitable CEFs to choose from as "replacement parts"? I'm sure most of you have developed personal selection universes like mine and I hope that those of you who subscribe to my universes are pleased with your results. I’m hoping that all of you are developing a “my portfolio is a department store” mentality, focusing on cash flow instead of the value of the inventory. The only problem with cycles in which CEF distribution rates are in the 10% area AND profit-taking opportunities abound is complacency. Investors may begin to think that this is the norm... rising prices and multiple daily profit-taking opportunities. I've heard some people express the opinion that profit-taking doesn't need to be quite so aggressive. Try not to let that happen to you. · Profits are important as a secondary stream of income that helps to grow the primary stream, or “base income”. Admiring (and/or being proud of) a large, unrealized profit, does absolutely nothing to grow your Base Income. And it’s the base income that pays the bills during significant corrections. In investing, where the future is always unknown, it's relatively easy to be both "right" and "wrong" at the same time. So, keep in mind that there will not always be environments like we’ve enjoyed so far this year. When possible, take at least one profit every day in each of your portfolios. Buy new securities or add to those that are down. Try to keep in mind that CEF prices have periodically fallen by 20% or more… be prepared by adding smaller new positions rather than adding to ones that aren’t down more than 7% or so. There’s no such thing as a bad profit, and isn’t it great that losses are rarely even considered? ----------------------------- If you are not experiencing a good "Income Growth" year, let’s meet to see why. If you are, please tell your story to others, in and outside the CEF discussion groups. |
The Retirement Income Independence Coach
Steve's goal is to help you achieve true income independence through proven, non-traditional investment strategies. Stay ahead of market trends, take advantage of timely promotions, and discover reliable methods to secure your financial future, no matter the market's ups and downs.
The popular Stock Market averages are down an average 7% from their recent All Time Highs and are currently at about the same levels as they were between July (NASDAQ) and October (DOW) of 2024. The average yield of the averages (SPY, ONEQ, and DIA) is a stingy 1.6%. The Bond market as measured by BND (Vanguard Total Bond Market Index) is mid-range of where it has been since July of 2022 and yielding an almost as stingy 3.61%. So as a retiree, how much erosion of “working capital” have you...
The DOW 30 - Really Interesting Numbers The DOW 30 companies (best in the world) pay shareholders about 3.30% of in-your-pocket income. Less than the 4% needed in retirement, without including management fees, if any, and a small fraction of company earnings. Their collective P/E ratio is an incredibly speculative 43.37/1. Not one is in single digits, as most of them were in the past. My universe of nearly 100 high quality Equity Closed End Funds allows you to own all these companies and pays...
Hi everyone, I’ve been a bit quiet on here lately, but that’s because I’ve been working up something special for you all. I am excited to announce the launch of the NEW RMS Income Investing Community! This exclusive community is designed to help professionals and retirees like you build an income-focused retirement portfolio that generates dependable income, adapts to market changes, and doesn’t sacrifice growth potential. When you join, you’ll gain access to expert guidance and invaluable...