Hugh Lam

So part of that is from, again, the income from these stocks, franking credits as well from Aussie shares and also option premium too.

That's covered core strategies.

And thirdly is royalties, which is probably a personal favorite of mine.

But effectively, a royalty is a company that provides capital to another company, gives them the right to use their IP, whether that's a gold miner, whether that's IP rights on a music producer, drug company, etc.,

The beauty of that is, you know, typically you're getting our exposure to the revenues of that stream from that company, but you're not incurring any of the operational costs.

And so you're getting very nice margins.

And again, that feeds through into income.

Typically the contracts in a royalty company, again, you're paying out monthly or very consistent income streams.

So that's equities and then in fixed income you've got of course the coupons from a traditional bond I talked about before.

You got interest from a term deposit or a savings account, traditional savings account.

The other one is to do with net interest margin and we'll probably talk about a little bit later but it's really about you know taking underlying building blocks, borrowing some money to lever up

that yield.

So it's a little bit of engineering involved, but it's very similar to what a bank does where they earn or pay out their costs or interest on deposits and they get money from mortgages.

And then they capture that spread between the two.

Technically, that's a form of income.

And yeah, so that's probably how we would divide the six buckets.

Yeah.

Yeah.

So yeah, we'll talk about my favorite one, royalties.

The ticker for that is R-O-Y-L.