I’ve discovered a way to earn the equivalent of a second Social Security check every month.

Now, I don’t want to mislead you. This check isn’t from Uncle Sam. In fact, the government doesn’t have anything to do with it. (I think that’s good news considering all the debt problems the government is facing).

And you won’t be receiving one big check. Instead, you’ll see dozens of smaller ones in your mailbox — or brokerage account — each month.

Let me explain…

According to the Social Security Administration’s Monthly Statistical Snapshot, in June 2011 the average monthly benefit for the roughly 55 million Americans receiving a Social Security check was $1,079.

That month, I earned $1,387 from this alternative method. The month prior, I earned $1,186, and the month before that I got $1,498. Like I said, I’ve discovered a way to earn the equivalent of another Social Security check each and every month.

And I only started to build this monthly income stream back in December 2009. So what’s the secret? What’s the key to earning a “second” Social Security check every month?

I call it my “Daily Paycheck” strategy. In short, I’ve been building a portfolio with the goal of earning a dividend or “paycheck” each and every day.

For my portfolio, I’m simply selecting solid and dependable income securities. And I’m focusing on those securities that frequently pay dividends.

Roughly half of the portfolio — including holdings such as the Reaves Utility and Income Fund (NYSE: UTG) — pay monthly dividends. On average, I receive 30 dividend distributions each month. So even on down days in the market, the daily income helps to mitigate any pain. And because I’m reinvesting the dividends, I’m actually using the dividends I’m paid now to add to my holdings… increasing dividends in the future.

You might think this sort of strategy would pay you a lot in dividends… but do nothing as far as capital gains.

But the results of my study have said otherwise…

Even with my slow and steady approach, my portfolio has not only kept pace with the S&P 500, it is now outperforming the overall market.

I bought my first investments for The Daily Paycheck’s $200,000 real-money portfolio in December 2009. But I took my time putting my money to work. I wanted to spread out my market risk and carefully research each potential holding. Six months later, I still had more than 40% cash in the portfolio.

Now that I’m fully invested and the dividends are compounding, the entire portfolio is starting to take off. From the beginning of this year through July 14 (the date I last priced out my portfolio in my Daily Paycheck newsletter), the S&P 500 returned 5.2%. In that time, the “Daily Paycheck” portfolio returned 6.1%.

This may not seem like much of a difference, but the best news is that this return is likely to only grow faster. Remember, I’m reinvesting dividends. That’s buying more shares and increasing the portfolio’s return automatically. The effect of compounding will just get larger.

Meanwhile, I’m doing all of this with about half the volatility of the broader market.

Now, this isn’t some “get rich quickly” scheme. And the income isn’t as guaranteed as a “traditional” Social Security check.

Action to Take –>  But as a Baby Boomer, I am more than a little concerned about the uncertainty surrounding Social Security in the decades ahead. Besides, the problems with the U.S. debt haven’t done anything to calm my fears about the sustainability of the current program. But with a strategy like I use in my portfolio, I don’t think you have to rely on Social Security alone for your retirement income needs.

[Note: If you’re interested in starting your own “Daily Paycheck” portfolio, be sure to read the course we put together. It’s called “59 Checks a Month” and it covers some of the rules — and stocks — I’ve used to build my portfolio. Visit this link to read now.]