Resource Guide 2
Part II: Principle 6: Assessing Investment Performance
What 4% Withdrawals Do to Different Portfolios
These are the CEFs that are included in Portfolio One, a 50/50 mix of equity and income CEFs, the CEFs pitted against the S & P 500 ETF, SPY, and the Bond Index ETF, BND, in three separate illustrations that show how: ETFs pay significantly more income, above the 4% payout target, how the 4% annual withdrawals deplete capital in both SPY and BND portfolios while CEF portfolio capital continues to grow, and how market value after the annual 4% draw actually grew faster than the S & P 500 in the 14 years from 2008 through 2022.
I suggest that you do a bit of research on each of these Closes End Funds just to see how they measure up with the various Quality, Diversification, and Income tests I described in the book. They can be found at CEF Connect, the website I use to do all my fundamental research.
Part III: Examples of Building Retirement Income
Income-Focused Retirement Investing (IFIR) in Action: Results From 2 Professionally Managed CEF Portfolios
A Retired Couple's Managed Portfolio
The following is a list of about 135 securities that were in this couple's two accounts on year-end statements from 2016-2022. Some securities were held in both accounts. Many were in and out of the accounts over the years, as is true of those that were held on the year-end dates.
ACP, AFT, AOD, AVK, ASG, AWF, AWP, BCV, BCX, BDJ, BGH, BIT, BIZD, BLW, BOE, BUI, BSL, BWG, CCD, CEFS, CGC, CGO, CHI, CHY, CHW, CIK, CLM, CRF, DBL, DHY, DPG, DSL EAD, ECF, EDD, EDF, EDI, EHI, EMD, EOD, EOS, ERC, ETO, ETV, ETW, EVG, EVV, FAM, FAX, FCEF, FCT, FPF, FLC, FOF, FSD, FTF, GAB, GDV, GGM, GGT, GHY GLQ, GLU, GLV, GRX, HEQ, HIE, HIO, HIX, HNW, HPI, HPS, HQH, HQL, HTY, IGA, ISD, IVH, JDD, JGH, JHI, JPC, JPS, JRO, JQC, JRS, JSD, JTA, JTD, KIO, LDP, LGI, MCI, MCR, MFD, MFV, MGF, MIN, MMT, NCV, NCZ, NFJ, NHS, NIE, NMAI, NRO, NSL, OPP, OXLC, PCF, PCI, PCM, PCN, PDI, PEO, PFL, PFN, PGP, PHT, PKO, QYLD, RA, RFI, RIV, RQI, RSF, RVT, RYLD, SPE, TEI, UTF, VGI, VLT, VTA, YYY, ZTR
I suggest that you do a deep research dive on a dozen or two of these using the QDI + PT guidelines you read about in "Retirement Money Secrets." See if you can identify those that would not now qualify to be in my selection of universes.
The Resource Guide
The Resource Guide is provided primarily for readers of Retirement Money Secrets. These are the security details for some of the graphs and charts in the book and for the transition to the CEF illustration from Part III. It will be of little use to you if you have not read the book.
NOTE: None of the securities mentioned in this guide should be considered buy, hold, or sell recommendations. Bear in mind that all examples are historical. Four of the funds mentioned are not CEFs, a few have since merged with other CEFs, and many may not be included in my current selection of universes.
My selection universes typically contain 250-275 quality-screened equity, taxable income, and tax-free CEFs that meet my selection quality, income, and diversification standards.