The Bridge Club Portfolio
Make Money On Your Money
Many available fixed-income investments pay an
average of less than 3%, and investors are starting to look for
different ways to earn a reasonable cash flow from their holdings. Our
"Bridge Club” Portfolio, based on a mandate of stable, high-dividend
securities, is an easy way to make money on your money.
of years ago, a client approached us and said he could no longer live on
10% GICs. He wanted cash flow and he asked for the following attributes
for the portfolio…
A reasonable rate of return: Current portfolios, matched up with the client’s comfort and risk tolerance can produce up to a 9% annual rate of return.
Lower volatility: To accomplish this we use a variety of investment instruments,
including T-series Mutual Funds (these funds allow you to defer paying
taxes until you sell), that allow us to broadly diversify, thereby
decreasing volatility. We also use trust units, preferreds and fixed
A regular income stream: These portfolios are built to create a MONTHLY cashflow, similar to
getting a pay cheque. The income is directly deposited into your bank
account (if that is your preference), or can be held or reinvested
within your portfolio.
Liquidity: Concerned about needing some of the capital? Whether you need $658
because little Johnny just hit a baseball through your window, or
thousands because it’s time for a new car, the majority of the portfolio
can be liquidated very quickly.
Taxation: By using T-series Mutual Funds (these funds allow you to defer paying
taxes until you sell), trusts and preferreds, which are beneficially
taxed and by minimizing interest vehicles such as GICs we can help
decrease the taxes you would otherwise pay.
We created a
portfolio that met his requirements, and after a few months he was so
satisfied with it that he recommended the portfolio to his entire bridge