With this strategy, the bulk of the portfolio (approximately two-thirds) will be allocated to primarily income-producing American Funds. The remainder of the portfolio will be allocated to a wide variety of income-producing ETFs in an attempt to:

  • Reach an income yield target of 2%, 3%, or a maximum yield percentage* (net of fees), while seeking to limit the amount of risk required to attain the net yield (higher net yield is typically associated with higher risk).
  • Maintain globally diversified exposure to income-producing assets.
  • Provide dependable yields in all market conditions.
  • Generate income using non-traditional asset classes, such as master limited partnerships, real estate, convertibles, senior bank loans, high-yield bonds, and international debt, in addition to traditional dividend-oriented stocks and investment grade bonds.
*CLS will seek the maximum yield, given current market conditions. Over the long-term CLS seeks a target yield of 4%.