What it is
Income strategy is an investing technique where your goal is to earn income from your investments. This method can help supplement your other sources of money such as a salary.
The income could include dividends from stocks and coupon payments from bonds, among others.
What it means for you
With an income strategy, your focus is to put money in assets that may give you regular and predictable earnings. It might be the right option if you want to add to your current income, and could also provide a steady flow of money for when you retire.
This is the alternative to a growth strategy, which involves choosing investment products that are most likely to grow your money over time. You can compare the benefits of each option to see which one suits you better.
Remember that if you have the money and time to invest for both growth and income, doing this would be easier if you had separate portfolios for each objective. That way, you’d be able to pick the investments with the right characteristics.
