An MLP portfolio can be designed for people at various stages of life. Pre-retirement, post retirement, and later retirement portfolios can be crafted for every need at every stage of life. Someone who is still working but looking for more capital appreciation could invest in a professionally selected portfolio of MLPs that could potentially raise their distributions quickly and thereby drive the price of those MLPs quickly. By the time the investor reaches retirement age, the portfolio should be paying out rising income at a higher level.
An investor who has recently retired and who is invested in a portfolio of low yielding municipal bonds or government bonds and stocks, could switch part of their portfolio to higher yielding MLPs that have the ability to raise distributions over time. Because of the tax deferred nature of those distributions, their tax could be lowered while at the same time, have spendable income increased.
Someone further on in life may want to spend more time with the grandkids and family members at a vacation home or engage in travel. However, the yields on government bonds and municipals being as low as they are could cause some discomfort. The solution: Invest in a portfolio of high yielding and conservative MLPs that provide high income with most of the income tax sheltered. The retiree can enjoy years of tax sheltered income, enjoying time with their friends, family and grandchildren. When the client passes these MLPs onto their children, the deferred tax bill is eliminated.
After 25 years of investing and tracking Master Limited Partnerships, DeWitt Capital knows the MLP world inside and out. We can build an MLP portfolio to suit each individual at every stage of life. See what you and your clients are missing by not investing in America’s energy infrastructure!
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