Here's a bigto in equities: Your come later, not sooner.
I’m happy with my retirement portfolio, but I won’t see anyfrom it for decades -- and I’ll have to sell my in order to make it work.
That’s why I’ve startedsome of my in assets, so I can my to work for me right now.
Dividend-paying stocks are the classic income investments. You receive a portion of a company’s profits just for being a shareholder. At regular intervals, you receive a payout based on the number of shares that you hold. You can begin receiving dividends almost immediately, as long as you buy within a certain time period.
Start with dividend income funds or , and build up your portfolio. It’s also possible to find some great foreign stocks that competitive yields. Your income rise as you build your portfolio.
Another classic addition to any income portfolio is bonds. While you won’t receive your back until the matures, you receive interest payments regularly. With the right strategy, bonds can provide you with a solid income right now. allow you access to a diversity of choices, and if you want to increase your potential , you can look into (they come with ) or emerging bonds.
Invest in real estate without a huge outlay, and receive income as well. The structure of REITs means that 90% of profits have to go to dividend payments. If you want exposure to real estate in your income portfolio, REITs can be the way to go. As with many other income investments, it’s possible to purchase REITs as part of ETFs and you can geographically diversify your holdings with foreign REITs.
4. Master Limited Partnerships (MLPs)
Many investors aren’t aware of the income-producing nature of these investments. With MLPs, the yield is often 6% or higher. Additionally, you can enjoy increasing payouts -- assuming these partnerships do well.
MLPs are especially prevalent in the energy sector, where you are likely to find them associated with pipeline projects. While there is great potential with MLPs, there is also a great deal of volatility associated with them.
If you want income that is a little more regular, preferred shares can be the way to go. A preferred share is a hybrid: It’s not a , and it’s not a bond. It represents a sort of quasi-debt. Preferred shares pay out regular dividends, and yields can be 6% or more. It’s considered a payment, though, so you don’t get the advantage of rising rates if things start improving.
Many companies thatpreferred shares are in the financial sector, so you need to feel confident about those companies before you buy.
The capital appreciation with income right now, and you’ll have the recipe for long-term financial success.Answer: Investment doesn’t have to just be about over a period of decades. It’s possible to start making money right now when you invest in income-producing assets. Look for a who can help you diversify your income portfolio by a mix of income investments that suit your risk tolerance. Create a plan that mixes long-term
- Create a retirement savings goal
- Design an investment plan to reach it.
- Get a professional money manager to continually monitor and rebalance your portfolio
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