Dedicated Portfolio

A portfolio that will work for you night and day, giving 110% effort. Or, if you go by a more technical definition, a dedicated portfolio is a group of investments designed to generate a level of cash flow necessary to pay for anticipated expenses.

Think of it in terms of retirement. You have a bunch of money saved up. You’ve also figured out how much it will take to live in your post-work golden years: taxes, rent, food, greens fees, tennis lessons, fishing license fees, costs associated with mail-order spouses, etc.

Say this adds up to $60,000 a year. With the pile of cash you have socked away, you (or more likely the cash your investment advisor has socked away for you) need to put together a dedicated portfolio that produces $60,000 in annual income. Usually this is done through some combination of bonds and safe dividend-producing stocks.