What Investment Strategy Is Best For YOU?

A quick Google search produces nearly twenty different "named" investment "strategies" that investors can use to achieve their many and varied investment objectives. A deeper review would probably discover several more, but not surprisingly, "retirement income" appeared in none of the five lists I examined.

• Four mentions: Value, Buy & Hold, and Environmental/Sustainability
• Three mentions: Growth, Income, and Dollar Cost Averaging
• Two mentions: Momentum and Small Cap
• The Others: Buy the Index, Index + a Few, Fundamental Analysis, Technical Analysis, Multi Asset, Long/Short, Core/Satellite, Factor, Passive, and Dividend Investing

I've been an investment professional for 43 years, so I've heard of all but two of these and either directly or indirectly used around ten of the others. If you are still under forty and not yet focused on how your investment portfolio is going to support you 20 years from now, combinations of some could get you started in the right direction: Value, Income, Fundamental Analysis, and Dividend Investing, for example.?

But if you've ever even contemplated early, normal, or someday retirement, none of these approaches will ever, not ever, get you to "Retirement Income Readiness" (RIR)... a position where your investment portfolio(s) produce a growing level of both income and working capital...?

• which neither a stock market correction nor rising interest rates will impair; in fact, either of these, even in combination, will have a positive impact upon the amount of income, its growth rate, and the growth in productive invested capital."

In addition to "retirement income", there are two not so well known investment strategies (and one very popular one) that did not make it to the lists, but in combination, can easily make RIR a reality. They are "The Working Capital Model" (WCM), "Market Cycle Investment Management" (MCIM) and Targeted Profit Taking. Google them with my name for some articles: you've all heard of the third, but without the "targeted".?

• WCM ?explains this fact of investing life: changes in market value simply have no impact on portfolio income production, regardless of the types of investments inside. Changes in ?portfolio working capital (the cost basis of the securities and cash inside), however, has a direct impact on income production, an elementary concept that should change many aspects of portfolio design... the types of securities used, selection quality and diversification criteria, and income requirements.?
• MCIM recognizes the cyclical nature of markets, securities, sectors, interest rates, and economies, and tries to prepare for and take advantage of market value movements in either direction, and in two ways. Targeted profit taking and the development of three separate purpose specific classes of security selection universes. Equity or growth purpose securities, taxable and tax free income purpose securities. The MCIM strategies make market volatility the investor's VBF.
• ?Targeted Profit Taking is the muscle that produces steroidal working capital and income growth within WCM/MCIM portfolios...?a direct result of volatility, cyclical market value change, and a virtually unlimited high quality, higher yielding, selection universe. ?

How many of you, when walking down the street, would not stop to pick up a Benjamin, a Lincoln, or even a Washington? Hell, I still pick up pennies! Any freed up capital, at any profit, is an opportunity to reduce cost basis and increase yield in existing securities... both income and working capital enhancers! In rallying markets, profit targets rise with the tide.

All three of these not so well known strategies can be applied to individual equity securities, but, unfortunately, they wouldn't produce an RIR portfolio either... the yields are just too anemic. But they can be applied successfully ?to both equity and income purpose securities (hundreds of them), available in daily tradable fund packages yielding an average of nearly 9% at today's prices. Closed End Funds (CEFs), longer in operation than either Mutual Funds or ETFs, are the only securities I know of that can facilitate, even insure, retirement income readiness... while employing many investment strategies, reimagined in a highly diversified, less financially risky, higher income production package. ??

Google Closed End Funds, join some discussion groups and start growing your investment income today! Make "Achieving Retirement Income Readiness" your numero uno investment priority.