gerenme Co-authored Treading Softly. It's natural to love a benchmark to compare yourself against. This is one reason why schools and the education system use standardized tests to evaluate each student against an established framework.
When you join the military, there are tests to ensure that you meet the expectations of what you need mentally and physically to be an active member of the armed forces. Many employers have basic expectations that they lay out ahead of time and then judge you against them annually to see how much of a raise they should give you or to decide whether to give you a raise at all. When it comes to the market and retirement, many investors will be advised to use a 60/40 portfolio – 60% exposure to equities and 40% exposure to some type of fixed-income investment.
Today, I want to compare a simple two-fund 60/40 portfolio versus the general market, specifically the S&P 500 ( SPY ), to illustrate how you can use two high-yield income-providing CEF (Closed-End Fund) investments to generate significantly more income than what the market would provide. Before I discuss these two funds, I will reiterate and remind investors that I do not support the concept of using just two investments to generate all of your income . Our Investing Group recommends holding at least 42 different individual income-providing investments.
We call this our Rule of 42, and as such, I will encourage you that while we view these two investments as well worth having in your por.
