10 REASONS WHY YOU SHOULD HAVE CMA'S 9% HIGH INCOME PORTFOLIO...
Now is the right time to start locking in high income investment rates, as the Federal Reserve continues to drive short term rates on CDs and money market funds towards 2%. CMA's 9% High Income Portfolio could be the right type investment for you.
Below are 10 reasons why we think the CMA 9% High Income Portfolio can be the answer to what many savers and investors are seeking:
1. CMA 9 % has a “built-in” 9% annual dividend & interest “cash flow” return, plus a moderate upside on the 15% of high-dividend common stocks.
2. CMA's 9% annual fixed return compares well when compounded against an annual 2% return on CDs and money market funds. Over 20 years, 9% on $50,000 goes to $280,000, whereas 2% on $50,000 goes to $74,000. At 9% the end result can be 4 times greater.
3. Common stock investing for growth has statistically produced an average 10% in annual returns since the 1930s, but in any year or sequence of years the market can decline 10-20% in value loss. CMA 9% creates a more predictable annual return.
4. With inflation currently at 3% per year, CMA 9% covers consumer price increases by 3-fold, whereas CDs and money funds don’t even match inflation.
5. Holding long term income investments in CDs and money funds is equivalent to “standing still” or even “loosing ground” on inflation. There is “no” real return or growth over time.
6. CMA 9% is highly diversified on risk by holding income securities across many industries that include: banking, telecommunications, gas & electric utilities, insurance, industrial companies, energy, health care and income commercial real estate. These are mature, stable industries, no risky technology investments.
7. CMA 9% is easy to understand by an investor. It holds income securities of well-known companies like: Bank of America, US Bank, Pfizer, CBS, Disney, Ford, Goodyear, Hertz, IBM, Sprint, El Paso Energy, and many others.
8. If one is retired, or using their interest income for living expenses, CMA's 9% “triples” the income spending power compared to other short term investments.
9. If one is a growth investor, CMA 9% adds a strong degree of “predictability” to annual returns that starts with a 9% fixed annual return, plus the growth potential of the common equities, and potential dividend growth also.
10. CMA 9% can greatly help preserve one’s capital, in that 85% of the income securities are senior securities of successful public companies.
Why be limited to only 2% CDs or money market funds, when CMA’s 9% High Income Portfolio can offer much more. The portfolio is suitable for IRAs, personal trusts and individuals. Securities are held in custody at the SEI Trust Company.
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