Investment for income

Audaxer · 28 November 2017 at 7:55PM

Pobby wrote: »

My worry is this. I have twice invested just before a crash. This was in the days when I was working. It might be sais we so much debt around and the length between the last crash, may be we are due a new crash soon?

I am concerned about a possible crash as well, but if you are investing just in income generating funds/ITs, then although the value of your investment may fall significantly in a crash, I understand that in many cases dividends will continue to be paid, and dividends are based on the number of units/shares you hold rather than on the fund's value.

Pobby · 29 November 2017 at 5:47PM

Thanks all, Keep them coming please.

enthusiasticsaver · 29 November 2017 at 7:46PM

As Audaxer says even if there is a crash the dividends usually continue to pay out. I have a mix of cash as I am coming up to retirement and diversified global funds which are split between income and accumulation. So long as I have enough accessible liquid assets to ride out a crash that is all I worry about. 5% return may be a little optimistic though. I work on a 4% yield. I will not consider property at this time. Too much hassle.