We had an especially lucrative month which boosted “cash.”
The vast majority of this money is invested in high-quality, intermediate-term municipal bonds, with a relatively small remainder in other debt instruments (i.e., high-yield hard money lending) that together kicks off more than $500,000 annually. With a heavy muni bond weighting, approximately 60% of that income is free from federal taxes. Although I’m not blowing the doors off with my total returns, on a tax-adjusted basis it’s a respectable 7% per annum — and a relatively low-risk “fortress of solitude.” |