Income investing is a type of investment strategy focused on building a personal investment portfolio that is specifically designed to generate a regular income. The core objective of an income investment strategy is to generate a steady and constant income stream. This flow of income can take many forms, including interest payments, bond yields and dividends, among others.
What does an income investing portfolio include?
Basic income investing portfolios may contain government bonds, stocks, real estate, corporate bonds, interest bearing accounts and mutual funds.
Many believe that government bonds are among the safest means of investing money to generate income. Exceptionally low risk, they make for attractive options for investment options. Corporate bonds work in the same way as government bonds but carry more risk, however, they typically offer greater yields.
Stocks and shares that pay regular dividends can also help generate continuous returns over time. Another popular incoming investing asset is real estate. This type of investment delivers a reliable inflow of revenue via rental income. Additionally, real estate investments offer specific tax benefits and options for growth of long-term capital stock.
Mutual funds can generate a periodic stream of income via interest payments and dividends, while money market and savings accounts that accrue interest provide the safest income investments, but perhaps the slowest and lowest yields.
If you’re seeking sound investment advice in Shropshire or Chester, we can help. Our expert team at Hartey Wealth Management can help you construct a well-balanced portfolio to suit your future plans.