Note One) Amateur Investor here just winging it along the Wide Wide World of Investing. Nothing you might see here represents actual investing rich intelligence; rather, it is assorted investing related “Stuff” held together by duct tape, glue and remnants of kite string. Beware… lest you fall into a pit of investing despair.
Here is the methodology of the Family Income Flywheel Port:
Simple Explanation: We gather lots of Dividend/Distribution paying companies across a number of categories - and chunk them into the Income Flywheel Port. Thereafter, we drip ongoing returns into more shares: what can be dripped…we drip. What can’t be dripped we simply gather up the cash into a moderately large pile and then distribute that cash into the companies that we feel are most deserving of a nice raise. Simple really.
A little more detail: We limit portfolio positions to either 1%…2%… or 3% allocations. We do this for a couple of reasons: 1) We invest in higher yield Stuff which limits exposure to any particular implosion, bankruptcy or other unforeseen bad stuff that might go KaBoom; and 2)…Uh I forgot the second reason when I took a break and went to the kitchen to see if I could swipe some strawberry shortcake. Oh well.
Where the growth port management takes me 3-4 hours a day, the Income Flywheel Port seldom takes more than 15 minutes. Just as a rancher doesn’t go out and check on every single cow - neither do we check on every single, company in the IFP.
Currently we have somewhere around 50 income paying companies with an average portfolio yield of just over 13%. Yes..yes…yes…I know…I know this is foolish and extremely dangerous and have been hearing that off and on for the last 10 years or so. But…as I wait for the income port apocalypse with fear and in seat-of-the chair total and menacing trepidation