Strategies for clients seeking income
No matter which direction the markets may be headed, some of your clients are likely to need income.
What kind of income goals do your clients have?
Clients often fall into one of two camps when it comes to income goals—some seek a stable income stream with capital preservation, while others seek income that increases over time with the potential for capital appreciation. The key is to find the best income solution to help each client pursue their goals.
Stable income and capital preservation
For investors seeking a predictable revenue stream, consider strategies that include fixed income investments, such as bond funds and money market funds. These types of investments seek to generate ongoing interest income while providing potential capital preservation and diversification. Some strategies also seek to minimize taxes.
Rising income and capital appreciation
For investors seeking an increasing income stream with the potential for capital appreciation over time, dividend-paying stocks might be a good fit, albeit one that is riskier than bonds. Dividend-paying stocks can potentially provide consistent dividend income, as well as dividend growth, and capital appreciation if the underlying stocks perform well.