How to Use Monthly Distributions
to Empower Your Purpose

High-net-worth individuals and families who don’t need a monthly income to cover immediate living expenses may want to use income dividends to empower their values.

Many of our clients find joy in using their distribution income to achieve financial and personal purpose. Whether it’s the delight of giving gifts to grandchildren, the satisfaction of supporting family members, or the fulfillment of funding education and special occasions, income dividends can fuel their purpose.

Aligning your investment income with purpose can bring a sense of fulfillment and satisfaction. You can move beyond building personal wealth to empowering your purpose. Consider these options:

Family

A significant amount of families we work with prioritize financial assistance to their children and grandchildren to further education. Your regular monthly cash flow can provide numerous options beyond schooling, to include financial help for first homes, first cars, world travel, or service and mission trips.

Charity

Several of our investors have sought to make a difference by supporting local and national charities aligned with their values and beliefs. Here are some ways to create and expand your philanthropic efforts:

Donor-Advised Funds

Donor-advised funds (DAF) are an effective way of donating to charity. You designate which charities you want to benefit and the timing of the grants. You get an immediate tax deduction while your assets grow tax-free. DAFs are relatively easy to establish, let the donor choose the charity after setting up, and are often the entity of choice for most donors looking to make an impact.

Charitable Remainder Trusts

Another way to contribute is through a charitable remainder trust (CRT). When you give assets to a charity through a CRT, you can direct the distributions and growth of those assets to provide consistent income to a certain individual with the remainder going to charity. CRTs are typically for investors who want to donate a significant sum or have a specific asset in mind to donate.

Volunteering

Investors can use monthly distributions as a financial cushion to volunteer. Volunteering is an opportunity to use your skills and knowledge to benefit others. Activities include supporting your hospital, church, teaching at a university or high school, and coaching youth sports teams.

Invest in Yourself

As some of our investors do, you may prefer to use monthly distributions to fuel your passions. According to Warren Buffet, “The best investment you can make is to invest in yourself.” Through personal growth and learning, you can use your monthly distributions to become the best version of yourself and unlock your full potential by investing in people and projects you are passionate about.

After a lifetime of long hours, stressful work environments, and the struggle with work/life balance, use your monthly distributions put yourself on the road to financial freedom. We view financial freedom as the ability to pursue personal and family priorities and engage in work only if it aligns with your passion and values. This means a greater priority in both time and attention towards family, friends, and those activities most important to them. And, most importantly, it means the ability to pay day-to-day bills is no longer contingent on a regular paycheck.

By achieving financial freedom, our investors have focused on seeking those activities or talents they have always wanted to pursue but did not have the time.

Other Investment Purposes

Some investors prefer to allocate their monthly distributions for other investment purposes. This may include meeting capital calls for private equity, real estate, venture capital, or other long-term growth opportunities. Specifically, we have several investors who use their monthly distributions to dollar-cost average into public market equity positions to hold long-term. By doing so, these investors use their excess monthly cash flow to invest into long-term growth opportunities.

High-net-worth investors may also use distribution income to invest in initiatives supporting entrepreneurship and economic empowerment. These included microfinance programs, startup incubators, or small business development projects. Your distribution income can also benefit your community by funding programs for increasing learning opportunities, providing capital for infrastructure projects, or sponsoring community causes.

Empower Your Purpose

Empowering your purpose with steady monthly distributions is a personal journey. You’ll want to tailor your strategy to align with your values, interests, and goals.

Thoughtfully allocating your distribution income can become a potent tool for self-fulfillment, personal prosperity, and collective well-being.

While empowering good by helping others is commendable, your top priority should be securing your financial future. A disciplined approach to distribution reinvestment can accelerate wealth accumulation, providing peace of mind for yourself and future generations.

About Solidarity Capital

Solidarity Capital is a boutique asset management company and investment fund manager focused on delivering monthly income to investors using a proprietary investment strategy. Based in Lehi, Utah, Solidarity is led by our founders, Jimmy Mortimer, Jeff McClean, and Zach Whitchurch, entrepreneurial thinkers and doers.

About Jeff McClean

Jeff McClean, Managing Partner of Solidarity Capital, brings a unique perspective to the Solidarity Capital investment team. Jeff leads fundraising, fund administration, investor relations, product development, and contributes to the strategic investment direction of Solidarity Capital. He earned a bachelor’s degree in accounting from Brigham Young University–Idaho, and a Juris Doctor, with honors, from the University of Texas School of Law.