CIS Model Portfolio for Income
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Strategy:
The good news is that there is no magic bullet that can cure the fiscal situation the government finds itself in. This means we can create some good long term strategies, knowing that what the Congressional Budget Office has projected is a very likely scenario. Here are several ways income investors can benefit from the current trend:

1 - Invest where dividends/income can rise over time. (This doesn’t include short term investments such as CDs or bonds that mature and then the investor rolls into a higher rate.)

2 - Keep maturities short term. (Under 3 years) (This does not include stocks)

3 - Ladder bond investments. (1/3 - 1 yr; 1/3 - 2 yrs; 1/3 - 3 yrs)

4 - Do not reach for yield. Stay away from high yield bonds and stocks. They tend to perform poorly when rates are rising.

5 - Stay with the high quality ratings (AAA, AA)

QUINT-ESSENTIAL STRATEGY

PORTFOLIO ALLOCATION CHOICE'S

PORTFOLIO CONSTRUCTION

MODEL FOR INCOME

ECONOMIC CYCLES

INVESTMENT PRINCIPLES

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