What Your Advisor Hasn’t Told You About Income Investing, A Q & A


One of the biggest mistakes investors make is to ignore the «income purpose» portion of their investment portfolios… many don’t even realize that there should be such a thing. The second biggest mistake is to examine the performance of income securities in the same manner as they do «growth purpose» securities (equities). Over the last 20 years, a 100% income portfolio would have «outperformed» all three of the major stock market averages in «total return»… using as conservative an annual distribution number as 4% If your portfolio is generating less income than you are withdrawing, something must be sold to provide the spending money. Asset allocation should not change based on market or interest rate prognostications; projected income needs and retirement ready financial risk minimization are the primary issues.

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