Investing Strategies

Income investing

1

Income investors are not concerned with the growth of their capital through rising stock prices. Instead, income investors are looking to boost their income through dividends payments or bond payments.

2

Income investing is usually associated with older people that have retired, as they are looking to boost their pension income. However, income investing can be used by people that have a low-risk tolerance.

3

As income investing is less risky, the returns that an investor can expect are lower. When investing for income, investors can expect an annual return of anything from 1.5% to 7%.

4

With returns being low, income investors need to have a lot of cash in savings to make it a meaningful income stream. This is why it is suitable for retirees, as they often receive lump sums in their pension.

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1. How much can you expect to earn from a cash investment?

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