Income VS Growth
Focusing on investment income may be more reliable in meeting living expenses rather than relying on the stock market to keep increasing in value.
Asset management works best when investors have clear objectives. Buying and holding investments in the hope that prices will eventually go up may no longer satisfy lifestyle income requirements.
For many years, investors became accustomed to extended periods of stock market gains which generated enough capital appreciation to meet living expenses. However, many markets have proven unreliable in providing the consistent, long‐term capital gains required to cover spending needs.
Retirees and pre‐retirees may benefit by utilizing investments that generate income through dividends and interest rather than relying on capital appreciation.
Achieving an income level that meets your goals may free you from the constant worry that comes with the need for an increasing stock market.