A Clear Look at Portfolio Income for December

This monthly update focuses on one of the most important parts of every financial plan: steady, repeatable income. Each month, I break down how the Income Bucket is positioned, what’s driving current results, and how the different pieces of the portfolio work together to support long-term planning.

Markets continue to shift as interest rates, inflation, and sentiment change. Because of that, a dependable source of income remains critical. The Income Bucket is designed to stay resilient through that noise.

For December, the portfolio generated an annualized yield of 17.04%. In 2025, monthly annualized yields ranged from 12.47% (April) to 17.04% (December), reflecting consistent income generation across a wide range of market conditions.

Private Real Estate

Private real estate continues to anchor the Income Bucket with stable, cash-flow-oriented exposure. These strategies focus on areas with long-term demand, including rental housing, industrial properties, and data centers.

We use private real estate because it provides:

• Predictable cash flow
• Lower volatility than public REITs
• Rental income that can adjust over time

As a result, this sleeve helps provide consistency and balance within the broader income strategy.

Private Credit

Private credit remained a key contributor to income in December. These investments focus on senior-secured, floating-rate loans made to established middle-market companies.

This part of the portfolio works well because it offers:

• Higher yields than traditional fixed income
• Loans backed by company assets
• Less sensitivity to daily market swings

Combined with private real estate, private credit helps drive income while maintaining a disciplined risk profile.

ETFs

The ETF sleeve adds liquidity and flexibility to the Income Bucket while still contributing meaningful income. Current holdings include QQQI, CAIE, CAIQ, and PCMM. In December, these funds were drivers of a significant uptick in yield. CAIE and CAIQ both had capital gain distributions that drove the overall number higher.

Each plays a specific role:

Together, these ETFs help smooth month-to-month results without relying entirely on private investments.

• PCMM⁶ – Provides public-market access to private credit through CLO exposure
• QQQI⁷ – Uses an options-based approach to generate monthly income
• CAIE⁸ – Holds structured income notes tied to a volatility-based index
• CAIQ⁹ – A related strategy focused on Nasdaq-based volatility exposure

Structured Income Notes

Structured income notes continued to play an important role in overall income generation. This sleeve remains the most active part of the Income Bucket, with notes being called or maturing regularly.

Changes in December 2025:

• 9 income notes were called during the month. Morgan Stanley, Barclays, Citi, and TD Bank were among the banks that called notes
• An example of a new note this month is from BNP, structured as a 4.5-year, with a 6-month no-call period and a 16.20% annualized yield

Because notes are called or mature regularly, this remains the most active of the managed income sleeves.

Closing Thoughts

The Income Bucket is built to deliver steady, diversified cash flow across market environments. December’s results highlight how combining private real estate, private credit, ETFs, and structured income notes can support higher income while maintaining balance.

With a 17.04% annualized yield in December, the focus remains the same: building income that feels consistent and reliable over time.

If you’d like to review how your income strategy is positioned or see how these results fit into your broader plan, I’m always happy to help. For more insights on how these strategies can support your goals, visit the 9M Investments and get a free assessment.