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We hear a lot about “passive income” when we discuss alternative income streams. For many, passive income is the Holy Grail of money making. The idea that you do nothing, and the income just comes to you is bewitching. However, is there really such a thing as passive income? I suppose that if you have some sort of inheritance that is managed on your behalf, that might qualify. However, much of the passive income that…

[ad#Content 300×250] One of the issues you have to contend with when it comes to retirement is inflation. Inflation, at its most basic, is viewed as rising prices. Inflation erodes your buying power, creating a situation in which your dollar does not go as far as it used to. If you consider that inflation has an annual rate, you can see why it would be a problem. If the rate of inflation is 3% annually,…

One of the ways that you can develop an investing income stream is to make use of dividend paying stocks. Because companies are paying out a portion of their profits in dividends, it is a great deal like receiving “free” money. It is money that you receive just for being a shareholder in a company that pays dividends, and the money is not connected to you buying or selling stock. However, in some cases you…

One of the ways that you can help increase your income is through income investing. This type of investing focuses on creating income stream through investments. While you can use bonds to accomplish your income investing goals, you can also use dividends to create an income stream. What are Dividends? Some companies pay out dividends as a way to reward shareholders for their investments. Dividends are actually a portion of company profits. This is money…

When times are economically uncertain, many decide that capital preservation is more important than growth. When the economy is in trouble, and when there are concerns that things could get worse, many switch their portfolios into assets that are considered less risky. The idea is to preserve their capital, rather than focus on growing their assets. This is because growth comes with greater risk. Greater Growth Potential = Greater Loss Potential Growth can be a…

One of the hallmarks of a good portfolio is diversity. This is a basic investing principle that most of us are familiar with. However, it can be difficult to build a diverse portfolio using stocks, bonds and cash. Choosing investments starts to become time consuming and risky. This is why many investors choose funds, which consist of a number of different securities lumped together, providing some protection should any one component of the fund lose…

In this time of volatility, many are concerned about investing in the stock market. What some are most interested in, especially those nearing retirement, is capital preservation. Unfortunately, inflation can erode returns on cash products and even many bond investments. Indeed, if the rate of inflation exceeds your yearly return, your buying power could be eroded. If you are interested in relatively low risk investments, U.S. Treasury securities that protect against inflation might be the…

You probably know that one of the most important aspects of successful investing is a healthy diversity in your portfolio. One of the ways that many people attempt to add diversity to their portfolios is by investing in funds. Funds offer a collection of investments. You invest in the fund, and you automatically invest in everything that is in that fund. For many — especially inexperienced investors interested in buy and hold — funds offer…