If you’re already invested in bonds, REITs, or dividend stocks, you’ve probably asked the same question we hear all the time: how does 8.5% monthly income actually compare to what I already own?
We want to answer that honestly with real numbers, real trade-offs, and a clear picture of who this comparison does and doesn’t favor.
The Comparison — Same $250K
Let’s use $250,000 as the baseline, because it’s close to an average investment size and it makes the math concrete.
- Dividend-focused stocks. A broad dividend ETF yields roughly 1.7% right now. On $250,000, that’s about $4,250 a year, around $350 a month.
- REITs. Real estate investment trusts yield roughly 3.5% to 4.5%. On $250,000, that’s $8,750 to $11,250 per year, or $730 to $930 a month.
- Investment-grade bonds. Somewhere in the 4.5% to 5.5% range today. That works out to $11,000 to $13,750 per year, $915 to $1,145 a month.
- Investor First Fund (IFF). At our 8.5% target: $21,250 a year. That’s $1,770 a month, directly into your account.
Let those numbers sit for a second.
The Tax Question
We want to address the tax question because it comes up. IFF distributions are treated as ordinary income, not qualified dividends. That means the tax rate is higher than what you’d pay on dividend stocks.
But here’s the math: at 8.5% gross, even after applying an ordinary income tax rate for most high-net-worth investors, the after-tax income from IFF exceeds what most bond and REIT portfolios generate on a qualified-dividend basis. The gross return difference is large enough to absorb the tax treatment difference.
Obviously, consult your tax advisor for your specific situation.
The Volatility Question
Here’s something that matters a lot for investors in or near retirement: principal in a first-lien debt fund doesn’t mark to market.
When interest rates went up in 2022, bond prices went down. REIT prices went down. Dividend stock portfolios declined. If you were retired and watching your account balance, that was a difficult experience.
An IFF investor’s account balance doesn’t fluctuate with market prices. You invested $250,000, your statement shows $250,000. Your monthly distribution doesn’t change because the Fed raised rates.
That’s a meaningful feature for someone managing retirement income.
The Liquidity Trade-Off
We’re going to be direct about the trade-off, because we think honesty here matters more than a sales pitch.
Stocks, bonds, and REITs offer daily liquidity. You can sell on any market day. IFF has quarterly redemption windows after the initial 12-month commitment.
For some investors, that trade-off isn’t worth it. If you’re not sure you can keep capital invested for at least a year, IFF probably isn’t right for you. And we’d rather tell you that now.
For investors with capital that can work on a longer horizon — capital that doesn’t need to be liquid tomorrow — the quarterly window is a reasonable trade for the return difference and the principal protection that comes with a first-lien structure.
Who Should Not Make This Switch
Let’s be explicit about who the Investor First Fund is not for.
- If this is your only capital and you might need it for an emergency, don’t invest it here.
- If you need daily liquidity, stay in your brokerage account.
- If you’re not an accredited investor, you can’t participate.
- If you’re looking for growth and capital appreciation rather than income, this isn’t the right vehicle.
IFF is for accredited investors who want meaningful, protected monthly income from capital that can work on a 12-plus month horizon. If that’s you, the comparison is compelling. Request the fund documents here.
