This monthly update focuses on one of the most important parts of every financial plan: steady portfolio income. Each month, I break down how the Income Bucket is positioned, what’s driving current results, and how the different parts of the portfolio work together to support long-term planning.
Markets entered the new year with continued uncertainty around interest rates, inflation, and growth expectations. In that environment, dependable income remains a core objective. The Income Bucket stays resilient through those shifts.
For January, the portfolio generated a annualized yield of 12.64%. This reflects a more normalized income profile following elevated year-end distributions that were driven by timing effects in a small number of ETF holdings in December.
Private Real Estate
Private real estate continues to serve as a stabilizing anchor within the Income Bucket. Current holdings emphasize income-oriented real estate with long-duration cash flows and limited sensitivity to daily market volatility.
Across strategies such as BREIT1 and Nuveen Global Cities REIT2, the focus remains on sectors with durable demand:
- rental housing in supply-constrained markets
- industrial and logistics properties
- data-driven and infrastructure-adjacent assets
These portfolios are designed to generate consistent income through contractual rents rather than market timing. While short-term valuations can fluctuate, the income component remains the primary driver of long-term results.
Private real estate helps provide:
- predictable cash flow
- lower volatility than public REITs
- diversification away from traditional stock and bond income
As a result, this sleeve continues to provide a steady foundation for the overall income strategy.
Private Credit
Private credit remained a meaningful contributor to income in January, continuing to perform in line with expectations.
Holdings such as BCRED3, CTAC4, and OCIC5 continue to emphasize:
- senior-secured, floating-rate loans
- borrowers with established cash flows
- structures designed to prioritize income and capital preservation
With short-term interest rates still elevated, floating-rate credit continues to benefit from higher base rates. At the same time, underwriting discipline and senior positioning remain critical as economic conditions evolve.
Private credit works well within the Income Bucket because it offers:
- higher income potential than traditional bonds
- asset-backed loan structures
- limited correlation to public equity markets
Combined with private real estate, private credit provides a complementary source of income with a different risk and return profile.
ETFs
The ETF sleeve continues to add liquidity and flexibility while contributing to overall income. Current holdings include QQQI7, CAIE8, CAIQ9, and PCMM6.
It’s important to note that timing effects in two ETFs drove December’s elevated income. by CAIE and CAIQ, where calendar timing caused January distributions to be paid in December. This resulted in higher reported income at year-end, but it was a timing effect rather than a change in underlying portfolio behavior.
As a result, January’s ETF income normalized, particularly for CAIE and CAIQ, while the other ETF holdings continued to behave as expected.
This sleeve remains an important component of the Income Bucket by:
- smoothing income over time
- providing diversified income sources
- allowing for tactical flexibility when conditions change
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, maturing, and replaced on a regular basis.
Changes in January 2026:
- 8 income notes worth 495K were called during the month. Notes from JP Morgan, UBS, Goldman Sachs,, and TD Bank were among the banks that called notes in January
- An example of a new note this is from BBVA, structured as a 5-year, with a 6-month no-call period and a 17.00% annualized yield
Because notes are called or mature regularly, this remains the most active of the managed income sleeves.
Closing Thoughts
January’s results reflect a return to a more normalized income profile following a year-end timing effect concentrated in two ETF holdings. Importantly, the underlying income-producing assets across the portfolio continue to behave as designed.
With an annualized yield of 12.64%, the focus remains unchanged: combining private real estate, private credit, ETFs, and structured income notes to build income that is diversified, repeatable, and resilient across market environments.
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.
1. https://www.breit.com/performance/
2. https://www.nuveen.com/gcreit/performance
3. https://www.bcred.com/performance
4. https://www.carlyle.com/ctac
6. https://bondbloxxetf.com/bondbloxx-private-credit-clo-etf/
7. https://neosfunds.com/qqqi/
8. https://www.calamos.com/funds/etf/calamos-autocallable-income-caie/
9. https://www.calamos.com/funds/etf/calamos-nasdaq-autocallable-income-caiq/
This content is developed from sources believed to be providing accurate information. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.