INVESTING for income is a strategic investment approach wherein the primary focus is on generating ongoing cash flow rather than capital appreciation. Income investing entails building an investment portfolio that consists of assets such as bonds, dividend stocks, real estate and annuities that generate a regular income stream.
This strategy can provide financial stability and flexibility at any stage of an investor’s life but is especially useful during retirement. If you are not yet at the stage of life when you need to live on the income generated by your investments, you can reinvest the interest so as to compound your returns over time. This can help accelerate the growth of your wealth and generate even more income in the future.
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