When you make income your primary investment objective, a number of things can change.

Price gyrations may be less of a concern to you as an income investor because you no longer need to rely on prices going up to fund your lifestyle. When markets become volatile, the most important concern becomes: “Will the company behind the investment still be paying income in five years’ time?” instead of “My principal has fallen and I need to sell into a down market.” Income often provides the conservative investor with a comfort factor in difficult markets.

If Accrue Wealth Designs can manage a portfolio that produces a desired income level, chasing capital gains by taking on more risk may become unnecessary. In challenging markets, we may even reduce income levels temporarily in an attempt to reduce risk and preserve principal.

At some stage in life, you may need your investments to provide income that covers your living expenses.

When this time comes, is it wise to continuing focusing on investment growth? When income is something you rely upon, consistent investment yield with an element of capital preservation may be more appropriate.
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