Retirement Ready Income Programs

Stock Market Issue Breadth Strong Since Trump Victory

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MCIM Working Capital & Income Growth Gains Continue... Realized Total Return" could be around 22% in spite of current income CEF weakness.

Income CEF correction continues; Tax Free Yields Again Above 6%

Unfortunately, we can no longer provide dependable IGVSI only issue breadth numbers. A similar feel for what's going on in the IGVSI Universe can be obtained by combining Daily "Watchlist" information with the individual issue numbers and statisics provided at Barchart.com.

If more issues are going up in price more often than down, most of the time, for a meaningful period of time, we are experiencing an unusually strong stock market. The opposite is equally true... and you need to use breadth information daily to help with your decision making process.

Your MCIM portfolio "smart cash" is being invested in high income paying Equity CEFs (because the government is fueling Wall Street profits by keeping interest rates at ridiculously low levels), and all reasonable profits should have been taken;  selling opportunities should be pounced upon; buying patience must be exercised.

MCIM portfolio "Working Capital" continues to rise, augmented by profits and continued high income levels.

Both Taxable and Tax Free Income CEFs have moved lower since August, and yields are becoming damn near irresistable..... 8.0% and around 6.0%, respectively.

With roughly 50% of MCIM portfolios in income purpose securities, and dividends being produced by all others, both Working Capital and Income continue to grow... this "safety net" allows retirement income payments to be made while new investment positions are established...

Next Statistic Stop: The Investment Grade Value Stock Expectation Analyzer.


 
Retirement Ready Income Programs
2971 Maritime Forest Drive
Johns Island, SC 29455
Phone (800) 245-0494 • Fax (843) 243-8509
Contact Steve directly for additional information: 800-245-0494
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Please read this disclaimer:
Steve Selengut is registered as an investment adviser representative. His assessments and opinions are purely his own. None of the information presented here should be construed as an endorsement of any business entity; the information is only intended to be educational and thought provoking.

Please join the private article mailing list or Call 800-245-0494 for additional information

Risk Management: Income, 401k, and IRA Programs

Take a free tour of a professional investment managers' private SEP IRA program during ten years surrounding the financial crisis:

CLICK HERE

In developing the investment plan, personal financial goals, objectives, time frames, and future income requirements should all be considered. A first step would be to assure that small portfolios (under $50,000) are at least 50% income focused.

At the $100,000 level, between 30% and 40% income focused is fine, but above age 50, the income focus allocation needs to be no less than 40%... and it could increase in 10% increments every five years.

The "Income Bucket" of the Asset Allocation is itself a portfolio risk minimization tool, and when combined with an "Equity Bucket" that includes only Investment Grade Value Stocks, it becomes a very powerful risk regulator over the life of the portfolio.

Other Risk Minimizers include: "Working Capital Model" based Asset Allocation, fundamental quality based selection criteria, diversification and income production rules, and profit taking guidelines for all securities,

Dealing with changes in the Investment Environment productively involves a market/interest rate/economic cycle appreciation, as has evolved in the Market Cycle Investment Management (MCIM) methodology. Investors must formulate realistic expectations about investment securities--- by class and by type. This will help them deal more effectively with short term events, disruptions and dislocations.

Over the past twenty years, the market has transitioned into a "passive", more products than ever before, environment on the equity side...  while income purpose investing has actually become much easier in the right vehicles. MCIM relies on income closed end funds to power our programs.

To illustrate just how powerful the combination of highest quality equities plus long term closed end funds has been during this time... we have provided an audio PowerPoint that illustrates the development of a Self Directed IRA portfolio from 2004 through 2014.

Throughout the years surrounding the "Financial Crisis", Annual income nearly tripled from $8,400 to $23,400 and Working Capital grew 80% $198,000 to $356,000.

Total income is 6.5% of capital and more than covers the RMD.

https://www.dropbox.com/s/b4i8b5nnq3hafaq/2015-02-24%2011.30%20Income%20Investing_%20The%206_%20Solution.wmv?dl=0

Managing income purpose securities requires price volatility understanding and disciplined income reinvestment protocals. "Total realized return" (emphasis on the realized) and compound earnings growth are the key elements. All forms of income secuities are liquid when dealt with in Closed End Funds. 



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Please read this disclaimer:
Steve Selengut is registered as an investment advisor representative. His assessments and opinions are purely his own and do not represent the views of any other entity. None of his commentary is or should be considered either investment advice or a solicitation of business. Anyone seeking individualized investment advice should contact a qualified investment adviser. None of the information presented in this article is intended to be or should be construed as an endorsement of any entity or organization. The reader should not assume that any strategies, or investments mentioned are any more than illustrations --- they are never recommendations, and others will most certainly disagree with the thoughts presented in the article.