Posted November 08, 2021
By Zach Scheidt
Welcome to Income Week! [personal video]
Welcome to Income Week!
I've been looking forward to this for a while.
And I’m confident that you're going to enjoy all of the different income opportunities and strategies that my team and I have put together for you.
Today, I wanted to kick off Income Week with a quick personal message.
I'll explain why we decided to focus on income this week... a bit of what you can expect from our team... and one high-level tip to make sure you're ready for the income about to head your way.
So check out the video below. As always, I'll leave my notes below so you can read through anything you miss.
- This week we'll be looking at two different categories of income opportunities:
- Market-based income that’s paid into your brokerage account
- And off-market income to diversify your different streams of income.
- Why are we doing income week right now?
- Inflation is picking up, which means you need more income to keep up with rising prices.
- Interest rates are moving higher, creating challenges for savers as the price of savings vehicles like Treasury bonds shift.
- Income is an incredibly versatile tool for investing. It's important for both retirees and for growth-minded investors who are more aggressive.
- Inflation is a big deal. Especially if you're on a fixed income and have rising expenses.
- As the father of seven, I'm concerned about grocery costs, college tuition, the cost of gasoline and higher bills when we get a chance to go out to eat together.
- You need to be able to generate income faster than the rate of inflation. That way you're getting ahead and growing your wealth (instead of just spinning in place.)
- The misconception on Wall Street is that income investing is only for retirees or conservative investors.
- But income should play an important role in any investor's portfolio.
- Income gives you versatility...
- You can use it to cover day-to-day expenses.
- You can reinvest income, creating compound profits and even bigger future income payments.
- You can funnel income into new aggressive plays so you always have some new cash to put into fresh breakout opportunities.
- Today's Tip: Keep two separate accounts: one for income investments and one for more aggressive growth plays.
- If you can't split your capital into two accounts, keep a notebook separating the two types of investments.
- For conservative investors, your income account can be your foundation or base account.
- Consider siphoning profits from your aggressive account and adding them to your income account. This helps you generate more cash flow, beating inflation.
- For more aggressive investors, your speculative account can be your foundation or base account.
- Consider siphoning income payments and using the cash to invest in new speculative plays.
- Regardless of where you are in life, income can make a big difference in growing and protecting your wealth!
Here's to living a Rich Retirement,
Editor, Rich Retirement Letter