RLTY - Model Portfolio For Income, April 2025
2025-04-20 14:27:55 ET
Summary
- The model portfolio aims to generate $10,000 annually with a $106,231 investment, averaging a 9.42% yield.
- It includes various sectors including business development companies, real estate, bonds, infrastructure, and utilities ensuring diversified income sources.
- The portfolio includes top-tier, liquid investments with proven performance, focusing on income growth and stability, and is scalable to match investor needs.
- I recommend a diversified basket of 20+ securities from various sectors to hedge against macroeconomic risks and achieve reliable income.
Investment Thesis
The following model portfolio was designed for investors seeking income, either building a portfolio for retirement or withdrawing income immediately. It uses the best ideas of BDCs, MLPs, CEFs, and REITS that I currently invest in to produce an income of $10,000 annually. It assumes an investment of $106,231 with an average distribution yield of 9.42%.
Within the portfolio, some investments pay out a consistent monthly or quarterly income, and some are chosen to grow the dividend over time. The result is an income flow that can be withdrawn monthly and will grow over time to adjust for inflation. While the model shows an income of $10,000, investors can use the concept to scale the amounts to match their portfolio. For example, if an investor wanted to use the ideas to create $50,000 in income, just multiply the recommended shares by five....
Model Portfolio For Income, April 2025