INVTGEN059 Investing for income (701 words)
INVTGEN059.docx
Description
This detailed article explains the different types of income-generating investments available, from those that have no potential to lose capital value to those with the potential of capital loss, and those in between.
Introduction
Share markets are renowned for taking unexpected downturns and while history shows that markets eventually recover, this rebound in value can occasionally take time. Investors concerned about this risk might consider a stronger focus on income-generating investments. These can range from those that have no potential to lose capital value to ones with a higher risk of capital loss. Outlined below are some options.
Investments with no ‘growth’ component
The following will give you back what you put in plus interest:
Online savings accounts pay a higher rate of interest because there is less cost involved in managing these accounts. The customer “does all the work” meaning the bank doesn’t need to allocate staffing resources. Interest on these accounts can vary substantially between providers and there can be enticing offers of extra or bonus interest for new customers or if you maintain a certain balance. The best advantage of these accounts is that you have access 24/7 to your funds.
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