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

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
Safety and Income: Introduction
RELATED TERMS
  1. Bid Wanted

    An announcement by an investor who holds a security that he or ...
  2. Treasury Direct

    The online market where investors can purchase federal government ...
  3. Subprime Meltdown

    The sharp increase in high-risk mortgages that went into default ...
  4. Event Risk

    1. The risk due to unforeseen events partaken by or associated ...
  5. Treasury Yield

    The return on investment, expressed as a percentage, on the debt ...
  6. Collateralized Loan Obligation - CLO

    A security backed by a pool of debt, often low-rated corporate ...
  1. How do I calculate the adjusted closing price for a stock?

    When trading is done for the day on a recognized exchange, all stocks are priced at close. The price that is quoted at the ...
  2. How do I find historical prices for stocks?

    Whether for research purposes, bookkeeping or even general interest in historical performance, this is a question that many ...
  3. What is the difference between positive and normative economics?

    Positive economics is objective and fact based, while normative economics is subjective and value based. Positive economic ...
  4. Besides a savings account, where is the safest place to keep my money?

    Savings accounts are safe because investors' deposits are guaranteed by the Federal Deposit Insurance Corporation (FDIC) ...
comments powered by Disqus
Related Tutorials
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. Capital Budgeting
    Investing Basics

    Capital Budgeting

  3. Beginner's Guide To Trading Futures
    Options & Futures

    Beginner's Guide To Trading Futures

  4. Introduction To Order Types
    Trading Strategies

    Introduction To Order Types

  5. Options Pricing
    Options & Futures

    Options Pricing

Trading Center