If you are looking to generate investment income in retirement, high-yielding dividends are an obvious choice. But it may not always be the best one.
For most of our investing life, we are focused on capital growth. We want our investment to grow and get bigger at a pace faster than inflation (after fees) so that we are creating real wealth for us to live off in retirement. Then, when we hit retirement, the focus shifts to earning an income from those investments.
A retirement annuity (RA) or pension scheme will be used to buy an annuity that will generate income, but what of our own do-it-yourself (DIY) portfolio?
If you are a DIY investor, you will likely want to continue to manage your own portfolio, but with a shift in purpose to receiving income. As a rule, you then tend to focus on dividends, searching for those high-yielding stocks. The obvious choice is property, which typically has the highest yield of any sector in the market. Preference shares also look good, but offer no capital growth, which means your income never grows. You can also focus on individual high-dividend-yielding stocks, but this focus on dividends has some problems.
この記事は Finweek English の 6 December 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Finweek English の 6 December 2018 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.