The path to recurring income is different for everyone. Do you have the right plan in place to help clients navigate their income needs?
Generating income: How far can your income take you?
Whether it’s seeking steady cash flow in retirement, providing supplemental income to a bi-weekly paycheck, or saving for a large expense, income goals can be met in a variety of ways.
Join us as we uncover the many methods and investment vehicles that aim to provide investors the income they need when they need it most.
It’s time to have a conversation about your fixed-income approach.
Investors need income for various reasons, especially during retirement. But investing in bonds is not always easy or pain-free.
We were reminded of that in 2022 when the Federal Reserve raised rates at a historic pace in its fight against inflation. And when yields go up, bond prices go down. As a result, bonds suffer through one of the worst years on record. That's not exactly the outcome investors would have expected for the more conservative part of their investment portfolio.
So what should investors consider doing now? Make your income work for you. What does that mean? Well reframe the way you think about income and have a conversation with your advisor about reviewing your asset allocation, including your approach to income. Diversifying your sources of income can be a great start and it should be done in the context of your goals, personal situation, and risk tolerance. That can mean income through equity dividends. It can mean income through non-traditional asset classes such as bank loans, or if appropriate for you. It can mean finding income through alternative sources such as hedge funds, market neutral income funds, or private equity.
A financial advisor can help you, one, develop a dynamic and fully diversified asset allocation framework. Two, uncover any potential risk in your fixed income portfolio. And three, identify active fixed income managers who can navigate this environment because generating income is vital.
Five themes that will resonate with investors all year long.
Explore VITALInvesting involves risk including possible loss of principal. There is no guarantee an investment objective will be achieved.