Build Your Own Income Production Machine

STEP ONE is a matter of perspective and of recognizing that there are time tested sources of dependable income that you just might not be familiar with. It requires an appreciation of the fact that income producing securities will continue to perform their duties regardless of most changes in their market value.?

The new perspective includes an understanding of the cyclical, long term, repetitive nature of both equity and income purpose securities and markets, and the knowledge that the income produced by either security type is actually a higher realized yield at lower prices.?

It's a realization that, with the proper quality, diversification, and income generation selection criteria in place, correcting markets are every bit as full of future income growth opportunity as rallying markets are for income and capital building profits.?

STEP TWO is exchanging the securities you are currently dealing with different funds which contain precisely the same individual securities, and which use pretty much the same strategies you or your fund managers are using now, but with significantly larger, and mostly monthly, dividends. Their purpose and structure requires a focus on putting more income in your wallet.?

• The market forces which move the prices of your current securities will have precisely the same impact on the replacement parts... so you can act at any market level to grow your investment income.

These new-to-you securities contain both equity (common stocks) and fixed income investments (bonds, mortgages, convertibles, preferreds, governments, etc.), and they are a type of fund that has been in operation longer than any of the other funds in your portfolios.?

The equity, or growth focused funds, pay multiples of that paid by the vast majority of ETFs and Mutual Funds. The income focused funds pay multiples of that paid by the vast majority of ETFs and Mutual Funds. Both are tradeable daily and can often be purchased at discounts to their NAV.

STEP THREE is managing the new portfolio in a way that grows the productive, invested capital and the realized income it provides, regardless of what is going on around you in the market place. It involves the selective reinvestment of all income received, and the willingness to sell any of your securities at a reasonable profit based on current market conditions, particularly when prices are relatively low.?

• You are developing your very own compound income machine.

This Not So New process is similar to how a grocery or department store operates. All inventory is always for sale at a reasonable profit, regardless of how long it's been held; take the profit, replace the inventory, repeat as often as possible. Increases in the value of inventory do nothing to increase the bottom line, or the income that you receive. And the funds you'll be using are required by their pass through trust structure to give you 95% of their net realized earnings. Not something dividend stock companies are likely to do, ever.

This three step approach is particularly beneficial in ROTH type packages, and in tax deferred programs like IRAs and rollover 401Ks, but it's great for taxable accounts too. There are even tax free varieties with larger income numbers than any other source. At the end of 2021, nearly $310 billion was invested in Closed End Funds.?

This is a 50 year old process, it is proven to be successful, it is available to everyone, and it is not difficult to master... the potential to double your investment income is a low ball estimate for most attentive investors.

Start your adventure with conversations with the members of these Facebook Groups: Financial Independence Safer Using CEFs, Closed End Funds for Retirement Income and Equity Trading, and Closed End Funds - Open Discussion

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