Robert Harding Financial Group logo
Larrry and Jeremy Mitchell photo

Robert Harding Financial Group

 

18301 North 79th Avenue D-149, Glendale, AZ 85308

 

Phone:     623-977-9823

Fax:         623-977-0181

Toll Free: 800-977-9823

 

WE OFFER INDEPENDENT UNBIASED NO-STRINGS-ATTACHED

FINANCIAL ADVICE. WE ARE COMMITTED TO YOUR FINANCIAL FUTURE!

January/February 2023

Investing for Income

Investing for Income

Income investing involves building a portfolio that produces enough profit to pay out a regular income. The success of this strategy depends on selecting investments that are likely to provide a steady stream of cash. Now that interest rates have increased, the yields on fixed income investments are climbing, too.


What Types of Investments?
An income portfolio generally consists of investments having low volatility and a long track record of paying dividends or interest. It typically includes:


  • Dividend-paying stocks (or mutual funds*), which are stocks of major companies with a history of maintaining or increasing dividends

  • ETFs (exchange-traded funds)

  • Bonds and other fixed income securities

  • Cash equivalent investments, such as money market accounts and Treasury bills


Not Without Risk
All investing is subject to risk, including the possible loss of the money you invest. While a conservative portfolio designed to produce income is generally less volatile, it isn’t risk free. Keep the following risks in mind.


  • Inflation can reduce the purchasing power of returns generated by income-producing investments.

  • Companies may cut, or even eliminate, dividend payments if their profits decline significantly. While it’s important to invest in companies with a long history of solid performance, it may not be enough to keep dividends from being affected.

  • Not reinvesting returns into the stock market means you’re missing out on compounding, which allows your original investment to grow over time. The longer your investing time frame, the more your savings may benefit from compounding.


Work with a Professional
Beginning investors should keep in mind that it will take many years to build enough wealth to generate a consistent and sufficient income. For income investing to be successful, it should be part of a long-term strategy that takes your goals and risk tolerance into account. Your financial professional can help you design a portfolio that meets your goals.


*Investors should carefully consider the investment objectives, risks, charges, and expenses of the fund before investing. Read the prospectus carefully before investing or sending money. Because mutual fund values fluctuate, redeemed shares may be worth more or less than their original value. Past performance won’t guarantee future results. An investment in mutual funds may result in the loss of principal.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

Securities and Investment Advisory Services offered through Geneos Wealth Management, Inc. Member FINRA/SIPC.
Robert Harding Financial Group and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.