The big driver of investment returns over time is not figuring which sector is going to be best, or which country is going to be best, or which style is going to be best over the next year or three – the big driver is income and the reinvestment of income.
The baby boom generation is now retiring (or attempting to retire) and will begin to take a closer look at their investments ability to generate income without liquidating their portfolio.
I still maintain that you must begin building a income portfolio as early as possible. My retirement account presently generates over $3,000 a month in income and I am still in my early fifties.
Every asset in my account generates an income.
I started this strategy in my mid forties. I wish I would have started earlier.
