Preserve the value of your wealth, and guarantee that you stay one step ahead of inflation.
Preservation of capital should be the ultimate goal of any investor. If you are nearing retirement, or indeed are already enjoying your retirement years, fixed income securities can offer you a regular flow of income to your portfolio.
Incorporating this strategy to your asset-base, will not only provide you further exposure to varying asset classes, but will in essence reduce your position to further risk. In addition, fixed income strategies are a proven and recognised way of staying one step ahead of inflation. We would suggest that unlike the equity markets, the fixed-income market allows you to identify long-term investment prospects without having to worry about short term market volatility and price fluctuations, so if you are a hands-on investor you don't need to keep track of daily movements.
Is a fixed-income strategy right for you?
Just like any other investment vehicle, it is necessary review and assess your financial needs in order to determine the dividend frequency of each fixed income strategy. How does the fixed income vehicle compliment your present situation? What will its role, when combined into your portfolio, expect to achieve? Does this assist with reducing your annual tax obligations?
If tax reduction is of significance, then you might consider a tax-free government bond. If you are focused on growth, you may opt for a high-yielding corporate stock. The choices are limitless, dependent on your goals and ambitions.
If you think you are better suited to income investing, contact Dalton to discuss the advantages of incorporating a fixed income quota into your strategy.