Kellands (Gloucester) Limited
Financial Management Consultants
The Mustard House
13/14 Barton Street
Tewkesbury GL20 5PP
Tel: 01684 850088
Fax: 01684 850089
E-mail: gloucester@kelland.co.uk
Income investing
Good income investing is about structuring your investment portfolio with a
mix of assets such as cash, equities, fixed interest securities/bonds, collective
investments and property to generate the highest possible annual income at the
lowest possible risk.
In the current low interest rate environment, getting a decent income from your
investments is not easy and many investors have moved into higher yielding,
more risky options in the equity and bond markets.
If you are investing for income, your starting point has to be to establish what
level of income you really need. You can do this via a simple cash flow calculation
looking at your income and expenditure. This can obviously change significantly
throughout your life, so you will need to review it regularly.
You then need to think about your long term financial objectives, as well as your
attitude to risk, plus the need for access to your capital. This will determine which
asset classes are suitable for you to invest in.
If you are looking to supplement your current income, cash plus fixed interest
securities, such as government bonds, corporate bonds and corporate bond funds
are the obvious starting points.
However, in the current marketplace, equities with high levels of dividend income
and equity income funds are a good option for many. The benefit of equities is
that they can also provide growth over time, so your savings can keep ahead of
inflation. Commercial property funds may also be worth considering.
Usually, the longer your investment timeframe the more you can invest in growth
investments. However, if your major need is for income plus ready access to your
money, sticking to cash and fixed interest investments makes sense.
There is a huge range of income-producing assets available. Choosing the right
options for you will depend on your investment objectives, your timescale,
your tax position plus your attitude to risk. This is where you need professional independent financial advice.
At Kellands Gloucester, we can help analyse your circumstances, needs and
goals, review your existing investments, prepare bespoke recommendations
based on your situation and objectives and then recommend the most
appropriate investment solutions for you from the whole marketplace.
So contact Kellands Gloucester now and speak to one of our qualified independent
financial advisers.