Investing For Safety and Income Tutorial
AAA
  1. Safety and Income: Introduction
  2. Safety and Income: Why Focus on Safety and Income?
  3. Safety and Income: Caveats Regarding Safety and Income
  4. Safety and Income: Stocks and Dividends
  5. Safety and Income: Bonds
  6. Safety and Income: Banks
  7. Safety and Income: Guaranteed-Income Products
  8. Safety and Income: Real Assets - Gold, Real Estate and Collectibles
  9. Safety and Income: Safety, Income and the Optimal Portfolio
  10. Safety and Income: Conclusion

Safety and Income: Introduction

By Brian Perry

Broadly speaking, there are three main reasons why an individual might wish to save and invest. The first reason is to protect their hard-earned money and ensure its safety. The second reason is to generate current income with which to meet expenses and the third is a desire to grow their principal and achieve capital gains. This tutorial will examine investment strategies designed to meet those first two goals: safety and income.

The tutorial will begin with a discussion of why an investor might wish to focus upon safety and income, followed by important caveats regarding this investment approach. The tutorial will then move on to examine various asset classes that might be able to meet the investment goals of principal safety and income generation. The asset classes discussed will include dividend paying stocks, bonds, various bank products, guaranteed income products, and real assets such as gold or real estate. Following this discussion of available asset classes, the tutorial will conclude with an examination of the role of safety and income within the larger portfolio management process.

Having read this tutorial, individuals will have a better understanding of the importance of principal safety and income generation in their overall investment program. Readers will also better understand asset classes that are available to them and how they can be used to structure a diversified portfolio. While a focus upon safety and income is not appropriate for all investors, many can benefit from such an approach and even individuals primarily focused upon capital appreciation may find that incorporating the principles discussed in this tutorial will enhance their overall investment program.

Safety and Income: Why Focus on Safety and Income?

  1. Safety and Income: Introduction
  2. Safety and Income: Why Focus on Safety and Income?
  3. Safety and Income: Caveats Regarding Safety and Income
  4. Safety and Income: Stocks and Dividends
  5. Safety and Income: Bonds
  6. Safety and Income: Banks
  7. Safety and Income: Guaranteed-Income Products
  8. Safety and Income: Real Assets - Gold, Real Estate and Collectibles
  9. Safety and Income: Safety, Income and the Optimal Portfolio
  10. Safety and Income: Conclusion
RELATED TERMS
  1. Premium to Surplus Ratio

    Net premiums written divided by policyholders’ surplus. The premium ...
  2. Current Liquidity

    The total amount of cash and unaffiliated holdings compared to ...
  3. Surrender Period

    The amount of time an investor must wait until he or she can ...
  4. Developed To Net Premiums Earned

    The ratio of developed premiums to net premiums earned over a ...
  5. Return On Policyholder Surplus

    The ratio of an insurance company’s net income to its policyholder ...
  6. Absolute Percentage Growth

    An increase in the value of an asset or account expressed in ...
  1. How are Morning Star patterns interpreted by analysts and traders?

    Understand the elements of the morning star candlestick pattern and how this reversal signal is interpreted by traders and ...
  2. What are the best indicators to identify overbought and oversold stocks?

    Learn about the interpretation of the relative strength index and stochastics, two of the most popular indicators of overbought ...
  3. How effective is creating trade entries after spotting a Golden Cross pattern?

    Explore the components of the golden cross pattern for elements of effective trading strategy based on this pattern, including ...
  4. Are continuation patterns most useful when looking at Candlesticks?

    Learn the basics of using candlesticks to confirm continuation or reversal patterns and the vital role this plays in establishing ...

You May Also Like

Related Tutorials
  1. Fundamental Analysis

    Ethical Investing Tutorial

  2. Economics

    American Depositary Receipt Basics

  3. Economics

    Macroeconomics

  4. Bonds & Fixed Income

    Certificates Of Deposit

  5. Investing Basics

    Capital Budgeting

Trading Center