When
the time comes to live off their savings, people turn
to income-producing securities. Yet few people understand
exotic instruments like preferred stock, emerging market
debt, royalty trusts, leveraged municipal bonds, covered
call funds, and real estate investment trusts -- to name
just a few -- so Ben Stein and I decided to write a book
about them. The result is Yes,
You Can Be a Successful Income Investor.
At
Conservative Wealth Management LLC, we assemble income
portfolios using high-paying dividend stocks and REITs
from companies having a long history of consecutive and
rising dividend payouts, selected from recession-resistant
sectors of the economy.
We
supplement these with a bond portfolio that attempts to
take advantage of the sweet spot in the present yield
and credit quality curve. Can this really make a difference?
Look at the chart below, showing how a simple timing strategy
switching between short term treasury notes and the Lehman
Brothers Aggregate Bond index could have made you more
money:
In
other words: yes, you can time the bond market, just as
you can time the stock market. While these approaches
are beyond the purview of our book, they are available
to investors at Conservative Wealth Management LLC.
In
practice, we combine both capital appreciation and income
strategies when it comes to investing for
