SHARPE INCOME … Getting a Piece of the S&P 500 Index

Posted on Sep 28 2015 - 5:02am by Sharpe Trade

The original Sharpe Income post that explains this project can be found here.

The Sharpe Income category be found by clicking on that red ‘Sharpe Income’ tag next to this post title, or by clicking here.

We continue the discussion from the last entry.


The account is beginning to grow …

Sharpe Income Balance 09_28

We now have three Income Assets in this project that pay regular dividends …

Current Income Assets Weight 09_28

We have four more companies to purchase to complete the first ’round’ of income purchases.  Namely, Medtronic (MDT), Colgate (CL), Microsoft (MSFT) and Wells Fargo (WFC).

Remember, that I personally already own these income producing stocks in my own personal income account.  What we publish here is simply the project that Sharpe Trade, LLC is publishing to demonstrate how anyone could get started and set up an income account for themselves.

Even at this very introductory phase of the project, on average, the income stocks are generating about $1.71 in income per month.  

Current Income Assets Per Month 09_28

Of course, the eventual goal here is to generate thousands of dollars per month in income.  But in the short-term, let’s see if we can get that number up to about $15.00 per month.  

Also, please remember that the dividends we earn from the capital gains instruments (TLT, PCY, QQQ, JNK, IVV) we do not count as dividend income for the project.  We will simply count those dividends as gains for our separate capital gains strategy that we use to support our income efforts.

Now, each week, according to the rules of the project in the first post, we contribute $25.00.  And of the cash we have on hand, we segment and allocate how we want to spend that cash.  Of the capital contributed this week, we continue with our plan and moved 92% of this contribution towards the category reserved for purchasing our assets dedicated to capital gains.  These capital gains assets will accelerate the growth of the project and make it possible for us to buy more income stocks. 

The remaining 8% of the capital contribution was placed towards the cash that we simply have ‘on-hand’ in the form of ‘dry powder’ to buy income assets.

Current Cash Allocation 09_28

Now, at this point, we could buy some PCY from our cash dedicated to capital gains.

But I’ll hold off on doing that.

It’s no secret, that I’m wanting the stock market to fall farther.  This morning … I’m rather … encouraged.  As a side note, we hold NO long equity exposure at the present time in our Sharpe Report’ teaching account.

If we can get the stock market to fall much farther as we build cash?  I’ll go ahead and purchase IVV (through the ETF commission free program available from many brokers) for the project and grab a piece of exposure to the fluctuations of the S&P 500 Index for our ‘Sharpe Income‘ project.

For now?  We’ll just let the market continue to fall, and save that cash ….

The link to the Google Drive Spreadsheet that you can view, that we will edit, build upon and refer to over time can be found at this link.

We continue the Sharpe Income project with this next entry.

The Sharpe Income PDF breakdown for Week 44 can be found here (numbers computed off of Friday’s close) …

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