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. Endowment Effect

    The endowment effect describes a circumstance in which an individual ...
  2. Self-enhancement

    The self-enhancing bias is the tendency for individuals take ...
  3. Gamification

    Gamification describes the incentivization of people's engagement ...
  4. Anchoring and Adjustment

    Anchoring and adjustment is a cognitive error described by behavioral ...
  5. Sample Size Neglect

    Sample size neglect occurs when an individual infers too much ...
  6. Credibility Theory

    Tools, policies, and procedures used by actuaries when examining ...
  1. How do I use Positive Volume Index (PVI) for creating a forex trading strategy?

    Understand the basics of the positive volume index and how investors in the forex markets use this contrarian indicator to ...
  2. How can I use alpha in conjunction with the Treynor Ratio?

    Learn about alpha and the Treynor ratio and how these metrics are used to assess investment strategy by comparing portfolio ...
  3. How is standard deviation used to determine risk?

    Understand the basics of calculation and interpretation of standard deviation and how it is used to measure risk in the investment ...
  4. What math skills do I need to study microeconomics?

    Find out how and why mathematics are used in microeconomics, what its limitations are and the kinds of math skills that economics ...

You May Also Like

Related Tutorials
  1. Fundamental Analysis

    Ethical Investing Tutorial

  2. Economics

    American Depositary Receipt Basics

  3. Economics

    Macroeconomics

  4. Investing Basics

    Capital Budgeting

  5. Bonds & Fixed Income

    Certificates Of Deposit

Trading Center