Dreamshala
    What's Hot

    $45 An Hour Is How Much A Year? (What Can I Spend?)

    February 7, 2023

    100+ Cash App ATMs Near Me [Totally FREE to Withdraw Money]

    February 7, 2023

    $40 An Hour Is How Much A Year? (Gross & Net Income)

    February 7, 2023
    Facebook Twitter Instagram
    • About Us
    • Privacy Policy
    • Affiliate Disclosure
    • Contact
    Facebook Twitter Pinterest
    Dreamshala
    • Make Money
      • GET PAID TO’ Sites
        • Get Paid To Read Books
        • Get Paid To Text
        • Get Paid to Walk
        • Get Paid To Sext
        • Get Paid To Flirt Online
        • Get Paid To Be An Online Friend
        • Get Paid To Listen To Music
      • Cash App Guides
        • Cash App Games
        • Cash App Names
        • Cash App Card Designs
        • Cash App Surveys
        • Cash App Flips
        • Cash App For Kids
        • Cash App ATMs Near Me
      • Reviews
        • FeetFinder Review
        • Instafeet Review
        • Feetify Review
        • Slot Rush App Review
        • AppStation Review
        • ZoomBucks Review
      • Money Making Hobbies
      • How To Make 50 Dollars Fast
      • Earn Free PayPal Money Fast
      • Get Free Money Right Now
      • Make Money Right Now
      • I Need Money Now
      • Make Money on Amazon
    • Jobs
      • Work At Home Jobs
        • Late Night Work At Home Jobs
        • Amazon Work From Home Jobs
        • Non-Phone Work From Home Jobs
        • Typing Jobs From Home
      • Online Jobs
        • Online Proofreading Jobs
        • Online Jobs That Pay $20 An Hour
        • Online Voice Acting Jobs
        • Online Jobs That Pay Through PayPal
      • Free Form Filling Jobs
      • Jobs That Pay Weekly
      • Jobs That Pay $40 an Hour
      • Jobs That Pay Up To $30 An Hour
      • Jobs That Pay $80 an Hour
    • Online Business
      • Best Business Books
      • Six-Figure Business Ideas
      • Start A Blog
      • Instagram Blogging
    • Save Money
      • Free International Calls Online
      • Free Books For Kids By Mail
      • Free Sites Like Netflix
      • Get Free Steam Codes
      • Fun Things To Do At Night
      • Get Free Milk Crates
      • Get Free Amazon Gift Cards
      • Cheap Vets Near Me
      • Free VIN Check Websites
    • Sell Stuff
      • Most Profitable Crafts To Make & Sell
      • How To Sell Feet Pics?
      • Sell Pokémon Cards
      • Sell Recipes Online
      • Sell Antiques Online
      • Sell Used DVDs & CDs
      • Crafts To Sell At A Farmers Market
    • Investing
      • Make Money From Dividends
      • $500 A Month In Dividends
      • $1000 A Month In Dividends
      • Examples Of Portfolio Income
      • Best Physical Assets To Buy
      • Appreciating Assets
    Home»Investing»Examples Of Portfolio Income: 11 Ways To Maximize In 2023
    examples of portfolio income
    Investing

    Examples Of Portfolio Income: 11 Ways To Maximize In 2023

    Siva MaheshBy Siva MaheshUpdated:January 27, 2023No Comments
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Do you know about portfolio income? Even if you know about it, do you know what the best examples of portfolio income are?

    And do you know how to create an income portfolio to maximize your profit? These are the questions that any investor should clarify before diving deep into the money market.

    So, we have analyzed all the avenues of a successful portfolio income plan to identify the full-proof ways to book profit.

    But before that, let’s talk about the basics first.
     

    Disclaimer:  This article contains affiliate links. We may receive a small commission when you make a purchase (No extra cost to you). Please read our Affiliate Disclosure for more information.

     

    Need Easy & Extra $300/Mo For Free?

    SurveyJunkie – Earn a quick $20 for taking surveys & reviewing products. Signup here.

    OpinionOutpost: Get paid up to $30 per answering simple questions. Join now.

    Nielsen App: Earn fixed $50/year. Also, get redeemable points & enter $10000 monthly sweepstakes automatically.

    InboxDollars: Get paid to watch videos. One already made $75 within a week. $5 Signup bonus.

    Pinecone Research: Up to $3 – $5 per survey & $7 per each product test. Join now for FREE.

     

    Post Contents

    • Three Types Of Income
      • 1. Earned Income
      • 2. Passive Income
      • 3. Portfolio Income
    • Examples of Portfolio Income
      • 1. Savings Account
      • 2. US Savings Bond
      • 3. Certificates of Bonds
      • 4. Money Market Accounts
      • 5. Preferred Stocks
      • 6. Real Estate Investment Trusts
      • 7. Dividend-Paying Common Stocks
      • 8. Peer-to-Peer Loans
      • 9. Master Limited Partnerships
      • 10. Mutual Funds
    • Ways to Maximize Portfolio Income
      • 1. Invest New Capital
      • 2. Choose Investments With Higher Interest Rates
      • 3. Invest in dividend Growth Stocks
      • 4. Reinvest Dividends
      • 6. Reduce Income Taxes
      • 7. Maintain Portfolio Turnover Low
      • 8. Reduce Investment Fees
      • 9. Invest in Qualified Accounts
      • 10. Never Go for Over-pay
      • 11. Diversify Portfolio Income Resources
    • Why Is Portfolio Income Important?
    • Conclusion – Portfolio Income Ideas

    Three Types Of Income

    Most of us think that our income is what we receive from our job or our business’s profit.

    However, it is not the actual case in finance as there are many examples of portfolio income as well!

    Primarily, three primary sources of money are counted as income.

     

    1. Earned Income

    This is the most traditional way of earning money. The monthly salary that you receive from your employer or the profit you accumulate from your business is the earned income.

    Money generated from any source where you participate actively belongs to this group.

    Most people entirely depend on this earned income to live. People not able to meet the minimum amount to live their life through this earned income usually get livelihood support from the government.

    You can also exercise social security privileges in the USA if you can’t meet the minimum income bracket.

     

    2. Passive Income

    This can be tricky to understand if you consider all the aspects of portfolio income vs. passive income!

    Passive income is anything where you don’t participate materially but still get some or total amount of money from a business or a secondary job, according to the 469(c) section of the Internal Revenue Code.

    Passive income is broadly divided into three main categories.

    • Income from rental properties
    • Income from renting other assets or equipment
    • Profit-sharing from a business as a sleeping-partner

    We neglect this source most of the time, isn’t it? However, you can adapt several unique passive income ideas that can fetch you a pretty good amount of cash each month.

    Is portfolio income passive or nonpassive is still the biggest question, isn’t it? But before that, you need to understand what portfolio income is.

     

    3. Portfolio Income

    This is even trickier to understand if you want to know what is considered portfolio income in the actual market!

    Portfolio income is the income that you generate from any capital investment, let it be a property or a bond.

    In a broad spectrum, there are three ways to produce portfolio income.

    • Capital gain, dividends, and interest earnings from bonds, stocks, and mutual funds
    • Profit generated from P2P money lending
    • Any royalty from physical or intellectual asset

    There are ways where you can make money without working for a single hour every day. And these are the avenues that you just need to explore if you are looking for a steady portfolio income.

     

    Examples of Portfolio Income

    While it has three main avenues, you can generate a good profit from several types of portfolio income.

    But yes, you do need to find the best ways to earn extra money if you are looking for the capital to invest in these below-mentioned instruments.

    So, here are the best portfolio income ideas to maximize your profit.

     

    1. Savings Account

    A savings account is the most elementary kind of account you can open in a bank. It assures the shortest liquidity period possible.

    So, a savings account is the best option if you want to put your cash in a safe place without having any hassle of withdrawing it while you need that.

    You can earn a minimal amount of interest on that money in your savings account. However, most savings accounts in the USA have a yearly or monthly maintenance fee.

    But yes, your bank will weave off the maintenance fee once you maintain a specific monthly balance.

     

    2. US Savings Bond

    Although the main principle is somewhat similar, a US Savings Bond is a bit different from a standard savings account.

    It is a low-risk investment that enables the traditional way of money-making through interest. Most of these bonds have tenure up to 30 years and are primarily issued by the US government.

    Most of these bonds also have a maturity period after which you can withdraw the entire maturity amount, including bonuses and interests.

    To fund the overall federal spending, the US government periodically issues these savings bonds to its citizens.

    So, you need to be a permeant citizen to gain profit from these bonds.

     

    3. Certificates of Bonds

    CD (certificate of deposit) or CB (certificates of bonds) is one of the best examples of portfolio income and has two main benefits.

    First, these certificates have specific maturity dates. And second, they offer a fixed interest rate till maturity.

    However, you need to invest at least a specific minimum amount in these certificates to unlock their potential.

    These bonds also have a downside! You won’t get cumulative interest from these bonds. Suppose a CD is paying 1% per year interest.

    So, you will accumulate $1k/year for the $100k you invest. But, in the second year, you won’t get the interest on $101k ($100k capital + $1k interest of the previous year). Instead, you receive the interest of your actual capital.

     

    4. Money Market Accounts

    First, don’t confuse it with a money-market fund or a money-market trading account!

    A money market account is a type of savings account that you can open at your nearby bank or from any registered credit union.

    MMDA (money market deposit accounts) is also a type of MMA (money market accounts).

    The money you invest in these MMAs is converted into high-yielding short-term securities and other financial instruments.

    It offers faster liquidity while ensuring a better interest rate than a traditional savings account. Most of the money market accounts these days also provide both checkbooks and debit card privileges.

     

    5. Preferred Stocks

    In layman’s terms, stocks are partial ownership of a farm or business without having any responsibility for actively running it.

    And in a broad horizon, stocks are mainly divided into two subcategories; common and preferred stocks.

    Preferred stock is a type of hybrid ownership that comes with the goodness of both common stocks and bonds.

    If you hold any preferred stock, you’ll have higher dividend claims, although you have a limited voting right to the company you invest in.

    Besides, preferred stocks also offer better liquidation than common stocks. But yes, it provides lesser liquidation opportunities than bonds.

     

    6. Real Estate Investment Trusts

    REITs or Real Estate Investment Trusts are those companies that manage income-producing real estates and properties.

    It is one of the best examples of portfolio income in an inflated market. They offer common stocks to the public to gather capital for their real estate projects.

    And in return, they pay dividends besides the actual profit from capital gain.

    This investment has two main benefits. First, you don’t need to take any burden of investing in actual real estate or maintain it in the right shape.

    And second, it has a much better liquidation than a tangible property as these are publicly traded stocks.

    It assures a steady income generation, although it has a minimal appreciation of the actual capital.

     

    7. Dividend-Paying Common Stocks

    DCS or dividend-paying common stocks are a type of partial ownership of a publicly-traded company.

    It is also a variant of ETF (exchange-traded fund), which you must invest and hold if you want a diverse portfolio. These companies offer a percentage of their profit to the common shareholders.

    You can maximize your profit from these DCSs by investing in stocks that offer a better dividend yield than others.

    According to the golden rule, you need to stick to a 3% to 5% dividend yield to keep your money safe. A higher yield percentage than this often attracts bigger risks of investment.

     

    Want to earn the highest dividend from your stocks? Don’t miss our step-by-step guide to make $1000/month in dividends even as a complete newbie!

     

    8. Peer-to-Peer Loans

    A P2P (peer-to-peer) loan is where an individual borrows money from another individual while assuring a fixed interest payment.

    It offers the biggest advantage over traditional lending from banks and financial institutes; less paperwork and the shortest time of disbursement!

    It also provides faster transactions between the lender and the borrower. Right now, P2P has a new form called crowdsourcing.

    It is where you invest money in any project that offers a fixed repayment period with a higher interest rate than the traditional market.

    Besides, these crowdsourcing loans offer the shortest sanction period and hassle-free transactions.

     

    9. Master Limited Partnerships

    MLPs or master limited partnerships are publicly traded partnerships. In simple terms, you become a business partner of a new or existing venture through these types of investments.

    It works pretty similarly to REITs, and both these instruments pay dividends to the stockholder.

    MLP is a hybrid fund that offers all the liquidity quotients of a stock and the complete tax advantage of a private partnership.

    As an investor, you will receive tax-sheltered dividends from these stocks to minimize portfolio income tax.

    However, it has a major drawback; most MLPs are limited to either real estate or natural resources.

     

    10. Mutual Funds

    As the name itself suggests, a mutual fund is a cumulative fund of many individual investors.

    A portfolio manager uses the entire pool of funds to invest in particular stocks and bonds to yield profit.

    And as an investor in those mutual funds, you’ll receive a percentage of that profit. It offers a complete diversion of the investment portfolio across many industries.

    One of the best things about this instrument is that it offers direct access to a high-profile portfolio manager.

    You will also get a steady income flow from these bonds even in a turbulent market situation. However, it is directly linked to the open market and has certain risk factors, although it is lesser than traditional stocks.

     

    Ways to Maximize Portfolio Income

    We have already uncovered all the best possible examples of portfolio income.

    But you will surely need to invest in the right instrument to gain maximum profit while having minimum risk.

    But even if you choose the right avenue, you may miss the best ways to accelerate and enhance that profit.

    So, try these following steps to yield a much better profit from portfolio investment.

     

    1. Invest New Capital

    While considering all the examples of portfolio income, you should also consider new ways to invest.

    You defiantly need to develop a better spending habit to save further and then invest that savings in a fresh stock or financial instrument.

    There are many tested ways to make quick money that you can also consider to boost your income significantly.

    You need to reinvest the capital gain to start the snowballing effect. Suppose you bought a share for $40/unit, and the current stock price is $50/unit.

    So, $10 ($50 – $40) is your capital gain. And you need to use that capital and invest further into a new or your existing fund.

     

    2. Choose Investments With Higher Interest Rates

    You need to think about the profit it is supposed to yield before investing in any instrument.

    You should compare all the possible examples of portfolio income and invest in those that assure a higher interest.

    But yes, higher return often leads to higher risk factors. So, you need to choose the investment instruments according to your loss-bearing capacity.

     

    3. Invest in dividend Growth Stocks

    There are many examples of portfolio income, especially in stocks, that offer a better dividend rate than others.

    So, you need to tally and identify those stocks that deliver a better dividend yield. However, it is better to stick to the 3% to 5% dividend yield to minimize risk.

    You need to check the historical data of a company to understand its dividend-paying pattern. It is better to stick to those stocks that steadily gave dividends for two decades or more.

    Besides, you also need to consider the future plans and ventures of the company to predict its profitability.

     

    Want to know how to make $500/month in dividends with minimal investment? Don’t forget to check out our step-by-step guide.

     

    4. Reinvest Dividends

    Get this first; reinvesting is the only way if you aim for bigger profit in the future.

    If you eat up all your profit from existing stock or any investment instrument, you’ll end up with a depreciating asset.

    So, you need to keep track of your spending and save money to reinvest.

    Suppose you have earned $500 in dividends from an existing portfolio. You shouldn’t eat up all that $500 profit.

    Instead, you need to buy newer stocks or reinvest in the same stock. This technique will not only develop a better investment habit but also yield a multiplied profit in the long run.

     

    6. Reduce Income Taxes

    Believe it or not, the core investment income formula to generate better profit is to minimize your tax burden.

    The money you save is the money you earn! However, reducing tax may not be entirely on your hand, depending on your current portfolio and tax situation.

    But yes, you need to identify all the tax-deferred or tax-saving instruments to balance your portfolio.

    Generally, long-term capital gains, government securities, and dividends come with the lowest tax burden. You can also put your money in any of the IRAs to save more tax.

     

    7. Maintain Portfolio Turnover Low

    There are many examples of portfolio income that offer better trading value, thus required to be traded frequently.

    And this is the biggest trap that any new investor can fall into. The golden rule is to maintain a low portfolio turnover. That means you shouldn’t frequently buy or sell any of your tangible and intangible assets.

    A higher portfolio turnover not only attracts higher taxes but also significantly increases the transaction costs.

    However, you need to consider a minimum amount of trading necessary to remain active on the market. But to enable more capital gain, trade as little as possible.

     

    8. Reduce Investment Fees

    The investment fee is the silent contributor to a high investment amount for a significantly low asset. It can also chop off your overall profit or capital gain.

    So, it is better to identify those investment instruments that offer a lower fee.

    There are many ETFs (exchange-traded funds) that offer a significantly lower investment fee than traditional instruments.

    Besides, you can also compare traders to select the one that assures a lower brokerage fee. It is also a good idea to stick to those firms that have no or minimal maintenance fees.

     

    9. Invest in Qualified Accounts

    We often neglect qualified and tax-saving funds while considering all the best examples of portfolio income.

    You should start investing in an IRA (individual retirement account) to gain maximum tax benefits.

    Besides IRA, several qualified accounts are also available, such as 401(k) and 403(b).

    It will not only just let you free from any tax headache but will also develop a better investment habit in you. You also often get these qualified funds with minimal and no-maintenance fees.

     

    10. Never Go for Over-pay

    Never ever enter a game that is overcrowded by players. And the same rule is valid in the financial market, too!

    An overinflated market has the overinflated price of stocks; better to stay away from it!

    Buy stocks when the market is low and then sell them when the demand is high. So, if you pay a higher price for a stock in any overinflated market, most probably, you’ll end up losing money.

    Always check the historical data of that specific stock price to assess its actual situation in the market.

     

    11. Diversify Portfolio Income Resources

    There are many examples of portfolio income where you can also invest simultaneously and earn from multiple sources. In this way, you can also minimize the risk factor even in the most volatile market.

    If you can properly diversify your portfolio, you can stay safe from possible corporate bankruptcies, global crises, and other market disturbances.

    So, diversification of your portfolio is the key to having a profitable investment plan.

     

    Why Is Portfolio Income Important?

    We have already discussed all the examples of portfolio income that are bound to give you profit even in volatile market conditions.

    But there are three main factors that make portfolio income very important for any investor.

    • It minimizes the risk factor through diversifications
    • You don’t need to spend a good chunk of time like in your day job or business
    • Most of these portfolio incomes require low maintenance

     

    Conclusion – Portfolio Income Ideas

    You’ll never end up being a rich guy if you only analyze all the examples of portfolio income but don’t invest in any of them. So, you need to act fast and start investing before it is too late.

    But for that, you also need to boost your current income to gather more money for investment. And you can start many lucrative business ideas without any investment to increase your net income.

    So, that’s all for today, folks! Feel free to send us your feedback in the comment box below.

     

    Our Popular Posts:

    20 Financial Goals Examples To Become A Millionaire in 2023.

    How To Make $500 A Month In Dividends [Jan 2023]

     

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Siva Mahesh
    • Facebook
    • Twitter
    • Instagram
    • LinkedIn

    Siva Mahesh is a full-time blogger and personal finance expert featured on US News, Yahoo Finance, Legal Zoom, The Simple Dollar, Databox, Business.com, Business News Daily, and more. He is the owner/founder of Dreamshala, a go-to place for 100,000+ monthly readers to find legit work from home jobs and make money online ideas.

    Related Posts

    20 Best Physical Assets To Buy For Higher Returns

    Appreciating Assets: 9 Things That Appreciate In Value

    Updated:January 19, 2023

    How To Make $1000 A Month In Dividends?

    Updated:January 27, 2023

    How To Make $500 A Month In Dividends?

    Updated:January 27, 2023
    Add A Comment

    Leave A Reply Cancel Reply

    dreamshala sidebar
    Related Articles
    • $45 an hour is how much a year$45 An Hour Is How Much A Year? (What Can I Spend?)
    • cash app atm near me100+ Cash App ATMs Near Me [Totally FREE to Withdraw Money]
    • $40 an hour is how much a year$40 An Hour Is How Much A Year? (Gross & Net Income)
    • weare8 reviewWeAre8 Review [Jan 2023] – Is This App Legit or Another Scam?
    • get paid to travel49 Best Travel Jobs To Get Paid to Travel in 2023

    Subscribe to Updates

    Get the latest sports news from SportsSite about soccer, football and tennis.

    Dreamshala is a personal finance website that helps 200,000+ monthly readers to achieve their financial goals .

    We're social. Connect with us:

    Facebook Twitter Pinterest YouTube LinkedIn
    Latest From Our Blog

    $45 An Hour Is How Much A Year? (What Can I Spend?)

    February 7, 2023

    100+ Cash App ATMs Near Me [Totally FREE to Withdraw Money]

    February 7, 2023

    $40 An Hour Is How Much A Year? (Gross & Net Income)

    February 7, 2023
    Get Informed

    Subscribe to Updates

    Get the latest creative news from Dreamshala about Jobs, Money, and Investing.

    Facebook Twitter Pinterest LinkedIn
    • About Us
    • Privacy Policy
    • Affiliate Disclosure
    • Contact
    © 2023 Dreamshala. All rights are reserved!

    Type above and press Enter to search. Press Esc to cancel.

    We are using cookies to give you the best experience on our website.

    You can find out more about which cookies we are using or switch them off in settings.

    Dreamshala
    Powered by  GDPR Cookie Compliance
    Privacy Overview

    This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

    Strictly Necessary Cookies

    Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.

    If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.