Yesterday I wrote about capital preservation as an investment goal. Today I’ll visit a second goal or objective; income. Income refers to the current payout you receive from an investment such as dividends and interest. Investments that generate income are frequently called “cash flow investments”.
By examining your big picture, which includes your age, job or income stability, dependents and desired lifestyle, you can create a plan that will identify whether income generation is a current investment objective. While more current income is always a pleasure it may not get you where you want to be in the future based on your financial goals.
