In my previous post I outlined the possible benefits of using multiple asset classes to achieve a more stable and attractive level of yield from an income-focused portfolio. In this post I take aim at targeting a fixed level of yield, showing that this objective could mean you miss the big picture.
Much like the choice between TV channels, income investing was easier in the old days. Investors seeking stable and attractive income from their investments needed to look no further than bonds. These days, with yields near historic lows, many investors are looking elsewhere.
For the seventh season, Mary Berry has us all glued to our TV screens watching the second (after the Olympics) most important competitive event of the year – the Great British Bake Off (GBBO). Mary has always highlighted the importance of sequencing to producing a good bake; something that income-focused investors should also pay close attention to if they are looking for more certainty around their investment outcomes.