On the Money to the Masses podcast, Damien Fahy discussed how Britons can build an income portfolio that produces a growing income over time, in excess of inflation. One of the most important things about investing for income is “the need to diversify your portfolio”, he said.
There are a lot of different things that Britons can choose to invest in such as shares, however, Mr Fahy warned that this requires a certain level of analysis, understanding and time.
He suggested that investing in a fund can be a less risky option.
He said: “Investing in a fund that is run by a manager where the mandate is to provide an income stream, they will invest in tens and hundreds of companies and use the dividend payments that come in to provide a pay-out to the investors in that fund.”
People should not just draw their income from one fund.
He said: “As a general rule of thumb, funds that are equity based that are aiming to provide an income tend to be the best at providing a growing income over time.
“So, if you want to produce income from an asset, you want that income to increase in line…
