Income Engineering
Cash-flow engineering plan — sleeve-by-sleeve yield enhancement toward $83K/mo net distribution target (IPS §6).
As of May 2026
$/mo Gap to $83K
–$81,164
Current yield: $2,169/mo
% of Need Covered (Yield)
3%
Target at full tactic stack: 43%
Annual Yield (Current)
$26K
Target: $433K/yr
Committed Pipeline
$230K
Live + Planned tactics · $19K/mo
Gross Return Required from Appreciation
38%
to fund $83K/mo net where yield only covers 14.1% today
0% (full yield coverage) ■ Yield: 3% ■ Appreciation needed: 97% 100%
3%
Yield (today)
43%
Yield (full stack)
57%
Still from appreciation
Yield by Sleeve
Sleeve Current $/yr Target $/yr Avg Yield% Target Sizing Progress Tactics
Public Equity
$11,779 $122,000 2.0% 66.0%
10% funded
3
Private Credit
$0 $178,100 10.1% 16.0%
0% funded
3
Real Assets
$0 $69,200 5.4% 12.0%
0% funded
3
Absolute Return
$0 $26,000 6.5% 4.0%
0% funded
1
Cash & Equivalents
$14,250 $37,800 5.2% 6.0%
38% funded
2
Total $26,029 $433,100
6% of target
12
12-Month Projected Cash Flow
Tactic Detail
Each card shows target contribution, sizing, current progress, mechanism, and tax treatment.
Public Equity
Covered-Call Overlay
Public Equity · IPS §4
Not Started
Target Yield
2.5%
Target $/yr
$58,000
Target Sizing
14.0%
Sizing progress 0.0% / 14.0%
Sell 30–40% of public equity notional in 1-month 5% OTM calls monthly; premium income with capped upside. Systematic via ETF overlay or direct account strategy.
Tax: Short-term capital gain ⚠ Risk noted
Dividend-Tilt Sub-Sleeve
Public Equity · IPS §4
Planned
Target Yield
3.2%
Target $/yr
$44,800
Target Sizing
12.0%
Sizing progress 0.0% / 12.0%
Shift 30% of public equity into high-quality dividend payers: dividend growth funds (VIG/DGRO) + high-yield tilts (SCHD). Targets 3.0–3.5% dividend yield vs index ~1.5%.
Tax: Qualified dividend ⚠ Risk noted
Qualified-Dividend Prioritisation
Public Equity · IPS §4
Live
Target Yield
0.4%
Target $/yr
$19,200
Target Sizing
40.0%
Sizing progress 40.0% / 40.0%
Screen all public equity for qualified-dividend status; eliminate non-qualifying positions where an equivalent yield is available with QDI status. Restructure HELDs to maximise after-tax yield.
Tax: Qualified dividend ⚠ Risk noted
Private Credit
Direct Lending Ladder
Private Credit · IPS §4
Planned
Target Yield
9.5%
Target $/yr
$95,000
Target Sizing
8.0%
Sizing progress 0.0% / 8.0%
Deploy $1M–$1.5M into 2–3 senior-secured direct lending funds (e.g. Blackthorn Direct Lending IV in pipeline). Quarterly distributions. 3–5yr term with semi-annual liquidity windows.
Tax: Ordinary income ⚠ Risk noted
BDC Stack (Public + Private)
Private Credit · IPS §4
Not Started
Target Yield
10.5%
Target $/yr
$52,500
Target Sizing
5.0%
Sizing progress 0.0% / 5.0%
Layer public BDC exposure (OBDC, ARCC, FSK) for liquid yield at 9–11% distribution; complement with private BDC for higher yield. Public BDC gives quarterly liquidity + 1099-DIV.
Tax: Ordinary income (1099-DIV) ⚠ Risk noted
Senior Secured vs Mezz Yield Optimisation
Private Credit · IPS §4
Not Started
Target Yield
10.2%
Target $/yr
$30,600
Target Sizing
3.0%
Sizing progress 0.0% / 3.0%
Target 70% senior secured / 30% mezz across private credit sleeve. Mezz layer contributes 2–3% yield premium over senior; controlled with concentration limits per IPS §5.
Tax: Ordinary income ⚠ Risk noted
Real Assets
Net-Lease REIT Sub-Sleeve
Real Assets · IPS §4
Planned
Target Yield
5.5%
Target $/yr
$33,000
Target Sizing
5.0%
Sizing progress 0.0% / 5.0%
Allocate 4–5% of portfolio to net-lease REITs (NNN, O, VICI). Long-term leases with contractual rent escalators produce stable, growing distribution yield of 5–6% with AFFO coverage >1.15x.
Tax: Mixed: ordinary income + return of capital ⚠ Risk noted
MLP Allocation
Real Assets · IPS §4
Not Started
Target Yield
7.0%
Target $/yr
$21,000
Target Sizing
3.0%
Sizing progress 0.0% / 3.0%
Target 2–3% MLP exposure (MLPA/AM/WMB or direct pipeline MLPs) for 6–8% distribution yield. Midstream MLPs produce fee-based income largely independent of commodity price.
Tax: Return of capital (depreciation) + ordinary income; K-1 ⚠ Risk noted
Infrastructure Income Funds
Real Assets · IPS §4
Not Started
Target Yield
3.8%
Target $/yr
$15,200
Target Sizing
4.0%
Sizing progress 0.0% / 4.0%
Allocate 3–4% to infrastructure income vehicles (Brookfield Super-Core Infrastructure, IFM Global Infrastructure). Target 5–7% total return with 3–4% income component. Inflation-linked tariff escalators.
Tax: Ordinary income + capital appreciation ⚠ Risk noted
Absolute Return
Merger Arb / Event-Driven Income Sleeve
Absolute Return · IPS §6
Not Started
Target Yield
6.5%
Target $/yr
$26,000
Target Sizing
4.0%
Sizing progress 0.0% / 4.0%
Allocate 3–5% to event-driven strategies with explicit income target: merger arb (deal spread capture) + credit event (distressed short). Target 6–8% net with low equity beta (<0.2). Use multi-strategy fund or Cerulean Capital Evergreen (in pipeline).
Tax: Short-term capital gain (merger arb) ⚠ Risk noted
Cash & Equivalents
T-Bill Ladder (Liquidity Tier 1)
Cash & Equivalents · IPS §6
Live
Target Yield
5.0%
Target $/yr
$18,000
Target Sizing
3.0%
Sizing progress 3.0% / 3.0%
4–8 week T-bill ladder for operating cash (Tier 1 buffer). Roll on maturity. Current yield 4.9–5.1%. Maximises after-tax yield vs money market by direct purchase (avoids fund expense ratio).
Tax: Interest income (state-tax exempt) ⚠ Risk noted
Short-Duration Credit (Liquidity Tier 2)
Cash & Equivalents · IPS §6
Planned
Target Yield
5.3%
Target $/yr
$19,800
Target Sizing
3.0%
Sizing progress 0.0% / 3.0%
Ultra-short bond fund (JPST, ICSH) or short-duration credit ladder (0–12mo) for operating reserve above Tier 1 floor. Target 5.2–5.5% yield; daily liquidity.
Tax: Interest income + short-term capital gain ⚠ Risk noted