The Oxford Income Letter Review

All investors understand the power of information. One of the reasons why most people don’t meet their financial goals is the lack of adequate information.

No matter how skilled or knowledgeable you are, you need to always stay up to date with current information. The stock market can be very unpredictable – that’s why investors should always be focused on reliable sources of information.

As an investor, there were days when it was difficult to get proper information about the stock market. Anyone who has traded before knows exactly what I am talking about.

Sometimes you might try to go by your instincts and get lucky but for how long? The Stock market operates in a very complicated way. There are several things that need to be taken into account in order to get the best out of it.

This means relying on instinct won’t be a long-term solution. For a long time, I relied on instinct and a few online resources to predict stocks. But when I came across The Oxford Income Letter, it was a big relief.

I was able to get insights and the most up to date information about the stock market. Within a short period of time, my income from the various stocks increased rapidly.

Overview of The Oxford Income Letter

The Oxford Income Letter is a publication of the Oxford Club – a financial analysis service that has operated for the past 30 years.

The newsletter subscription service is managed by Marc Lichtenfeld. Marc Lichtenfeld is an experienced fund manager and biotech expert.

NOTE: We currently recommend Motley Fool over Oxford Income. Learn More >

Pricing Options

The Oxford Income Letter has an annual subscription that goes for $49. This is however a basic subscription, that only comprises a monthly digital copy of the newsletter.

There’s also a premium subscription that costs $79 annually. The premium version includes a physical copay mailed to subscribers on a monthly basis. It also comes with a log with four researched reports from the company.

The third option is a standard subscription that comprises of print and digital versions of the newsletter. It doesn’t contain any reports and goes for $129 annually.

This option appears to be a strategy to give subscribers a perception that the premium option is largely discounted.

The company usually charges $249 for its premium subscription service but the $79 annual price tag has remained on the company’s website for several months.

The Oxford Income Letter Investment Model

The Oxford Income Letter is mainly focused on income. It lays emphasis on bonds and dividend-paying stocks.

Although the newsletter takes account of price appreciation, more focus is on how the stock pics and the way assets are divided into various portfolios with regards to dividend yields.

How The Oxford Income Letter Works

1. Portfolios

There a slight difference between The Oxford Income Letter and other stock newsletters in terms of how they function. This is because an investor doesn’t only get the worth of a single portfolio rather four unique portfolios that all have distinct goals.

For instance, the Fixed Income portfolio focuses on blue-chip corporate bonds as well as municipal bonds. Most of the bonds recommended by the newsletter are BBB-rated and mature within a period of 10 years.

On the other hand, the Compound Income portfolio is exclusively a dividend portfolio. By the time I was writing this review, the average yield of the portfolio was 5.9%. The projected dividend of the constituent stock was 7.5%.

The other portfolio is the Retirement Catch/High-yield. It mainly invests in stocks with high yields of dividends at the present moment. That’s probably why there are often minimal stocks within this portfolio.

This is because Lichtenfeld goes for stocks with dividend yields of over 10% and is likely to gain even higher valuation. This is one portfolio that needs a lot of research and information before investing your money.

2. Monthly Newsletter

The Oxford Income Letter is sent to subscribers at the beginning of every month. The newsletter is generally divided into various articles, most of which are written by Lichtenfeld. The other one is written by a different analyst, basically reinforcing his recommendations.

The major story in the article expounds a single stock picked by Lichtenfeld for that particular month. The articles also consist of instructions on what price to purchase the stock, which portfolio to drop, or add among other instructions.

Besides, Lichtenfeld advises subscribers on whether to keep a stock in retirement or taxable account – depending on the expected appreciation. The other story talks about the bond that is projected to pick during that month.

However, the performance of the portfolio is not discussed in all the articles. But the newsletters conclude with several tables, indicating general performance. The tables also have vital information that informs readers whether to buy, hold, or dispose of their stock.

You need to always check the tables to find out the best time to sell your stock. This is because it is the only way can know whether to get rid of bonds and stocks from your portfolio.

The Compound Income portfolio is the biggest The Oxford Income newsletter. It has over a dozen stocks. I saw various stocks that had been in this portfolio for over five years and had yielded over 200% returns.

There were also recommended stocks in the past two years that had recorded losses of about negative 30 to negative 45 percent.

Lichtenfeld and other analysts often recommend stop-losses when giving stock projections. But if there is no stop loss suggested, then there is no reason for you to keep holing a losing stock.

Platform Differentiators

The Oxford Income Letter is more like The Motley Fool’s Stock Advisor – the only difference is that the latter puts deals with dividend stocks. In addition, The Oxford Income Letter is a relatively cheap service – considering the fact that it provides between one and two picks every month.

Performance of the Oxford Income Letter is varied, especially when it comes to the Compound Income Portfolio.

If you are a long-term investor, it would be a good idea to combine the two dividend picks with a growing stock portfolio. Alternatively, you can decide to set stop losses in cases Lichtenfeld or any other stock analyst has not suggested to them.

Who Is This Most Ideal For?

The Oxford Income Letter is most ideal for experienced or retired investors. The service generally emphasizes on creating future income, by putting money on stocks that have sustainable dividend yields. Investing in bonds is also a great way of generating future income.

The newsletter isn’t complex or technical, meaning any average investor will be comfortable using subscribing to it.

Most of the information contained in the artless is geared towards ensuring that investors make the most out of the stock market. It is up to every investor to keenly follow on the advice given on various stocks to improve their portfolio.