The “Super Income System” is meant to take advantage of this special window of time when both interest rates and inflation are higher than normal. The fundamental beliefs that I have are as follows:

1. Interest rates cannot remain high forever.
2. Inflation cannot remain high forever.

It is these two beliefs that are providing one of the greatest investing opportunities, bar none, of my lifetime – and hopefully yours as well.

Interest rates today are producing an income opportunity unparalleled since the early 2000s, and in some cases, even the ’80s and ’90s.

Using a system of investing in several income-producing sectors, I expect that over the next five years, I will be able to generate a return of over 50% on my investments through what I consider “safe” income plays that ALSO should have immense capital gains opportunities as interest rates fall.

The size of your portfolio does not matter. If it is small, it can get bigger. If it’s large, it can get even larger. Focus on the returns and the strategy, not necessarily what you are starting with.

Each investment I am going to list below has either income or capital gains potential… or BOTH! It is the combination that should accelerate your returns. The accompanying reports go into each investment opportunity in depth. I want to give you an overview AND THE EXACT CAPITAL ALLOCATION that I am using in my portfolio for each investment as we go to press. I will be recommending more income plays in Trade of the Day Plus as long as the dynamics of higher rates remain.

Assets and Allocations

Preferred stocks (highest-rated U.S. banks): High income AND capital gains. Dividends should receive qualified treatment at lower tax rates. These can be held in retirement and nonretirement accounts due to favorable dividend tax treatment.

ALLOCATION: 33.5%

U.S. Treasurys/cash: Guaranteed income from U.S. Treasurys and select savings and money market funds insured by the Federal Deposit Insurance Corporation.

ALLOCATION: 23%

Dividend-growing stocks and master limited partnerships (MLPs): High dividends from solid S&P 500 companies and energy plays through MLPs. High dividend and capital gains potential.

ALLOCATION: 15%

Municipal income closed-end fund: Free of federal taxes and state taxes, depending on where you live. Good tax-free monthly income with capital gains potential.

ALLOCATION: 4%

Preferred stock exchange-traded funds: High monthly dividend income and significant capital gains potential.

ALLOCATION: 22.5%

Super-speculation gold stock: Gold acts as a strong hedge against a weak dollar and economic uncertainty. Gold stocks are a much more cost-effective way of investing in gold than buying the physical thing for a large price.

ALLOCATION: 2%

TOTAL: 100%

The Catalyst CashOuts Portfolio

All future investments in the Catalyst Cashouts portfolio will be marked according to the type investment that matches the above allocations. Of course, you are free to adjust the allocations above as you and your financial advisor see fit depending on your age, personal financial situation and risk tolerance.

Based on a starting stake of $100,000, for example, I would expect to ultimately make $50,000 in total income and capital gains over the next five years. Here’s how that would be achieved…

With a starting stake of $100,000 and 5% average annual income, that would come out to a total of between $25,000 and $30,000 in income (depending on whether you compound and reinvest your dividends). You’d also get 20% to 30% in capital gains growth, assuming that interest rates and inflation five years from now are back down to where they were before the Federal Reserve began raising rates.

On a $1 million portfolio, that would be $500,000 in total gains. And on a $2 million portfolio, it would be $1 million in total gains.

Taxes will impact your returns if you are investing outside of a tax-deferred account.

Welcome to Catalyst CashOuts!