INVESTING FOR CURRENT INCOME

One of the goals you might have for investing is to generate more income.  What kind of investor might have this as his or her goal?

Someone who is retired  Someone who wants financial security and independence  Someone who wants a comfortable standard of living  Someone who wants to pay off debts and bills  Someone who wants extra money to travel

Certain investments are better than others for generating regular income.  These include the following:

Cash and equivalents, such as money market accounts, CDs, and Treasury bills and notes.  These instruments provide interest income on a regular basis.  Bonds, including Treasury, municipal, and corporate bonds. These provide a high level of fixed income over time.  Income stocks, including preferred stock, utility stock, large-cap stock, and blue chip stock. These pay income in the form of dividends.  Income mutual funds. These provide a way of investing in diversified portfolios of income investments, such as the ones mentioned above, to provide reliable income over time.

Now let's look at another way to invest.