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  • Yorkshire House, 9 Stratford Road,, Shirley, Solihull,, West Midlands
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INVESTING FOR INCOME

Volatile stock markets and low interest rates have conspired particularly against investors seeking income, with the dual problem of falling income and possibly reducing capital.

There is no single answer to these problems although diversification is becoming far more important than ever.

The main factors in developing any portfolio (see "Building An Investment Portfolio") are your

  • requirements (eg for income), risk, accessibility and how to achieve these through diversification.
  • Building an investment approach for income can involve the following stages:-
  • Consider your overall requirements (eg for income)
  • Consider the level of risk you are prepared and able to take
  • Arrive at a suitable asset allocation
  • Consider the form of the investments, eg ISAs, Collectives, Investment Bonds
  • Select the investments and funds accordingly
  • Monitor and Review

An income portfolio could include some or all of the following:-

Cash ISAs for income

Bank or Building Society Income Accounts

National Savings, eg income bonds

Guaranteed Income Bonds

Stocks & Shares ISAs to provide an income stream

Funds, eg

  • Gilt & Fixed Interest Funds
  • Corporate Bond Funds
  • Strategic or Mixed Bond Funds
  • High Income/Equity Income Funds - UK and globally
  • Enhanced Income Funds (some target a yield of 7%)
  • Multi-Asset and Distribution Funds
  • Property Funds

Investment Bonds

Capital Protected Income Funds and Structured Products

Annuities

Each may have its merits depending on your circumstances. It is very rare that all funds should be invested in cash, nor should they all be invested in shares. Diversification is the key.

We shall be happy to meet to discuss the above in more detail.

Please note that the above is not designed to provide recommendations in any case. Investments shown tend to be longer term, and values can fall as well as rise, as can the income provided. Past performance cannot be taken as a guide to future performance. Structured investments have their own considerations which will need to be discussed. Tax rates and reliefs can change. 

Free Consultation

You can have a free initial consultation. There's no fee, no catch and no obligation on your part. 

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