Where can you find consistent & predictable income from your investments
Constructing an income producing portfolio for retirement income is not an easy task when interest rates are so low. The old way of structuring your portfolio was to ladder GICs and bonds. With rates ranging from 1% to 3%, these don’t even meet inflation. Where should you turn?
If you have a very large portfolio and your income need is modest you can easily find investment funds nowadays which will yield about 5% to 6% , paid as a regular cash distribution. This income comes from High Yield income funds made of a mix of corporate bonds, government bonds, equities yielding high dividends and income trusts. Among the best funds in that category out there are the Dynamic Strategic Yield and Signature High Income. Several balanced funds do the same but may not yield as much or pay a regular distribution. The prospectus states that the distribution is fixed but not guaranteed of course. You can get these funds in class F as well which charge lower fees for accounts of $500,000 or more.
Depending on your income need, you may not need to set up a systematic withdrawal plan from these funds if the yield is sufficient.
If these apply to your needs, we will be sure to let you know at our next periodic meeting if you don’t have them in your portfolio already.