Initial Value $41,000.00
December 18, 2016
Update Value $48,130.16
December 15, 2016
In May 2015, I created an income portfolio designed for Tax-Free Savings Accounts (TFSAs).This portfolio has a goal of generating cash flow of at least 5%. Income is the key to its success; any capital gains are a bonus. Note that because the securities chosen have above-average yields, risk is on the high side. So this is not a good model for very conservative investors.
I selected 10 securities from the Income Investor Recommended List. All are Canadian based so currency exchange is not a factor, except for the distributions from the limited partnerships, which are in U.S. dollars. I gave each security an initial weighting of approximately 10% for diversification and balance.
As of Dec. 9/16, the new portfolio valuation was $48,130.16 (market value, cash, and retained income). That is up 5.6% from the time of my last review in May. Overall, we are ahead 17.4% since the launch, for an average annual compound growth rate of 10.5%.
We received cash flow of $1,356.74 over the period, which works out to just under 3% for the seven-month period. Over a full year, that?s the equivalent of 5.1%, which is consistent with our target.
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