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Current Economic Events Impacting Income Investors

According to the Federal Reserve's website, "To support continued progress toward maximum employment and price stability, the Committee expects that a highly accommodative stance of monetary policy will remain appropriate for a considerable time after the economic recovery strengthens. In its September 2012 statement, the Committee indicated that it currently anticipates that exceptionally low levels for the federal funds rate are likely to be warranted at least through mid-2015."

In other words, the Federal Reserve is committed to keeping interest rates low for years to come and this directly impacts the yields on all securities.

The Portfolio Strategy

The Dividend OverDrive Portfolio is an aggressive income-oriented portfolio designed to give your investments income ballast in times of turbulence. The portfolio has a targeted yield of 10%, but it may be more or less than that figure depending on market conditions. With a heavy focus on income and dividends, it may be an outstanding complement to other diversified investments that make up your financial portfolio. The Dividend OverDrive Portfolio is designed to take advantage of the ultra-low Federal Reserve Rate policy and help individual investors counter the depressed rates one gets in today’s Treasury, CD, and money market investments. If rates stay low for years or decades like they have in Japan, you need income to offset flat or turbulent markets. The Dividend OverDrive Portfolio will have a dividend yield approximately 300-400% higher than that of the S&P 500 but with a market beta approximately equal to that of the S&P 500.

The Dividend OverDrive Portfolio will utilize a mix of dividend-paying stocks and bond funds to achieve a diversified portfolio of securities suitable for a portion of any investor's portfolio. Among the equity sectors this portfolio will focus on will be Agency and Hybrid Mortgage REITs, Foreign Blue-Chip stocks, Master Limited Partnerships (MLPs), ex-Canadian Royalty Trusts (CRTs), Business Development Companies (BDCs), Energy, and Consumer Staples. Bond products providing income and stability will include traditional Closed-End Funds (CEFs), High Yield Bond Funds, and Floating Rate Bond Funds.

The creator and proprietor of the Cash Flow Replacement Ratio used in retirement and investment planning, Frank M. Bifulco is a Chartered Financial Analyst and Certified Financial Planner who has spent over two decades managing high-net worth individual and institutional accounts. In addition to his various certifications, Mr. Bifulco has passed all exams pertaining to the Series 7, 63, and 65 exams on his initial attempts. His commentaries and investment analysis have appeared on CNBC and Bloomberg Television, as well as print journals such as Forbes.com, TheStreet.com, RealMoney.com, and ETFWatch.com.

Simple Pricing

With a mutual fund manager, your dividends are eaten up by the huge management fess that can easily add up to thousands of dollars per year, but with the Dividend OverDrive Portfolio low monthly subscription fee of just $29.99/month, more dividends end up in your pocket!



The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this model portfolio and/or report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Model Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the PUBLISHERS contributing to Portfolio Channel and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Investors should always consult an investment professional before making any investment.

Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

The analysis provided is based on both technical and fundamental research and is provided ''as is'' without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

The information contained in the Model Portfolios is provided by Frank Bifulco. Employees and affiliates of Frank Bifulco may at times have positions in the securities referred to and may make purchases or sales of these securities while publications are in circulation. Frank will indicate whether he has a position in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and may change thereafter without notice.

Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the index but also to the 500 companies that have their common stock included in the index.

All returns assume reinvestment of dividends unless otherwise indicated. Investments in equities carry an inherent element of risk including the potential for significant loss of principal. Past performance is not an indication of future results.

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Meet The Model Portfolio Manager:
Frank M. Bifulco, CFA



I am a principal with Alcott Capital Management where I engage in money management and research activities. Prior to ACM, I held a number of portfolio management and research positions with various European Private Banks. I was the primary energy analyst as well as credit analyst for these banks in addition to my other duties. In addition, I worked at several boutique firms in the 1990s covering cable, cellular, and media stocks as well as various institutional sales positions covering equities and fixed-income securities.

I am a graduate of Hamilton College in Clinton, N.Y. where I majored in Economics with a minor in Government. I am a Chartered Financial Analyst (CFA) as well as a Certified Financial Planner (CFP) and have held the Series 7, 63, and 65 securities licenses. I am a member of both the New York Society of Security Analysts and the CFA Institute.

In my spare time, I enjoy detailing and restoring Corvettes, hiking, and astronomy. I am an avid amateur astronomer and have lectured on topics as diverse as globular clusters and the extinction of the dinosaurs to public audiences.

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