Welcome to the Easy Income Portfolio

Author: Tim Melvin | November 12, 2024 11:08am

This portfolio is designed to do exactly what it says it will. The Easy Income portfolio will deliver a regular and consistent stream of income into your account on a regular basis.

Some of the investments pay monthly and others quarterly. The cash can either be the income you need for your dream retirement or reinvested to help compound your cash at high rates of return, no matter what the stock market does from day to day.

The Easy Income Portfolio is for you if:

• You want a portion of your portfolio in a collection of assets that delivers a regular stream of cash that can be used to provide steady returns without constant surveillance and monitoring.
  
• You are closing in on retirement and want a portfolio that can deliver returns that can push you over the finish line without any need to try and become the next Jesse Livermore.
  
• You are retired and you want your money to work as hard as you have your whole life while you spend time doing the things you love to do.
  
• You are tired of worrying about every economic announcement, Fed move, and Wall Street scam.
  
• You are tired of worrying about how much inflation will do to your nest egg. The Easy Income Portfolio should be a large part of your investment portfolio.

You can quit worrying about finding the next big thing. The Easy Income portfolio will benefit from every major social, demographic, and economic trend that is shaping our future.

The income will come from companies that are on the cutting edge of technological advances like Artificial Intelligence and Quantum Computing.

We have a housing shortage in the United States, and solving it will put a lot of money in your pocket month in and month out as an Easy Income Portfolio Investor.

We have too many banks in the United States. The industry has been consolidating for 30 years and will continue to do so for the next 30. Financing this trend will be a regular source of income for this portfolio.

Technological advancements will require an enormous amount of energy. Supplying that energy will put large amounts of cash in your pocket on a regular basis.

Slowly but surely, the world will turn to renewable energy as the leading source of energy. Financing this transition will be wildly profitable for investors using the Easy Income Approach.

A portion of your capital will be managed by the best fixed income investor of the last decade and send cash into your account no matter what happens in the stock market.

The recovery in commercial real estate is going to last for a long time and generate a lot of cash you can use to compound your wealth or maximize your enjoyment of retirement.

It’s time your money works not just as hard as you do, but as smart as you. The Easy Income portfolio will help you do exactly that.

Portfolio Update

Since this is the first edition of the update, let’s go over some ground rules:

1. Initially, you should fund the portfolio in equal dollar amounts.
   
2. The different securities have varying degrees of correlation with each other.
   
3. Some will zig in response to a news announcement or economic event, and others will zag.
4. Some will love inflation and others will hate it.
   
5. Strong economic growth will cause some of the securities to move higher while others flatline or move lower.
   
6. The opposite will be the case when the economy weakens.

If you are investing with the intention of collecting the income or putting in a lump sum of cash, you can stop here.

If you are investing for total return and planning on adding cash to the Easy Income Portfolio, add to the positions that have been down the most over the past month. The high cash flows and diverse income streams will do all the heavy lifting going forward.

This month, the honors go to:

1. Dorchester Minerals (Ticker: DMLP)
   
2. iShares Mortgage Real Estate ETF (Ticker: REM)
   
3. SPDR Blackstone Senior Loan ETF (Ticker: SRLN)

Dorchester Minerals is an oil and gas royalty trust that owns properties in 28 states. It collects payment for every drop of oil and natural gas pumped out of its land by major oil companies. Even with the current low price of oil and natural gas, Dorchester Minerals is yielding almost 10%, and that will go up as energy prices increase.

REM is tracking sideways this year as the portfolio is a balance of residential and commercial real estate loan portfolios. The combined yield of the lenders held by the ETF will deliver a consistent stream of cash into your account. Continued rate cuts by the Federal Reserve will lift the net asset value of the lenders held by the ETF as well.

The Blackstone Senior Loan Fund owns a portfolio of loans to middle-market companies and is overseen by one of the best alternative asset managers in the history of financial markets. Most of the loans in the portfolio have floating interest rates, so if we should see any upward pressure on rates from economic news or geopolitics, this fund will act as a hedge. If we do not see any moves up, it is just a source of cash as the fund yields about 9%.

The recent economic news shows that the economy is growing while inflation moderates. For most, that is good news for almost all our holdings, but that is subject to change based on a wide range of possible events.

No matter what happens, the Easy Income Portfolio will keep producing large streams of cash, and the diversification of the assets we hold should help offset market volatility.

Posted In: DMLP REM SRLN