Team photo
Centuria Financial Group

1021223-00006-00

David P. McCabe,

WMCP®, ChFC®, CLU®

Financial Planner

david.mccabe@prudential.com

 

Nathaniel D. High, RICP®

Financial Planner

nathaniel.high@prudential.com

 

Nicholas J. Over, CFP®

Financial Planner

nicholas.over@prudential.com

 

Sara E. Martin

Client Relations Manager

sara.martin@prudential.com

 

Jennifer A. McCabe

Client Relations Specialist

jennifer.mccabe@prudential.com

 

Centuria Financial Group

2333 Baltimore Blvd Suite B

Finksburg, MD 21048

 

Phone:  443-952-7232

January/February 2023

Investing for Income

Insurance agent consulting mature family couple, discussing health insurance, signing contract deal of loan pension mortgage at home, calculating funds, investments, savings

Income investing involves building a portfolio that produces enough profit to pay out a regular income. The success of this strategy depends on selecting investments that are likely to provide a steady stream of cash. Now that interest rates have increased, the yields on fixed income investments are climbing, too.


What Types of Investments?
An income portfolio generally consists of investments having low volatility and a long track record of paying dividends or interest. It typically includes:


  • Dividend-paying stocks (or mutual funds*), such as “Blue Chip” stocks, which are stocks of major companies with a history of maintaining or increasing dividends

  • ETFs (exchange-traded funds)

  • Bonds and other fixed income securities

  • Cash equivalent investments, such as money market accounts, Treasury bills, and checking and savings accounts that are good for holding cash


Not Without Risk
All investing is subject to risk, including the possible loss of the money you invest. While a conservative portfolio designed to produce income is generally less volatile, it isn’t risk free. Keep the following risks in mind:


  • Inflation can reduce the purchasing power of returns.

  • Companies may cut, or even eliminate, dividend payments if their profits decline significantly. While it’s important to invest in companies with a long history of solid performance, it may not be enough to keep dividends from being affected

  • Not reinvesting returns means you’re missing out on compounding, which allows your original investment to grow over time


Work with a Professional
For income investing to be successful, it should be part of a long-term strategy that takes your goals and risk tolerance into account. Your financial professional can help you design a portfolio that meets your goals.


*Investors should carefully consider the investment objectives, risks, charges, and expenses of the fund before investing. Read the prospectus carefully before investing or sending money. Because mutual fund values fluctuate, redeemed shares may be worth more or less than their original value. Past performance won’t guarantee future results. An investment in mutual funds may result in the loss of principal.

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Centuria Financial Group is not affiliated with Prudential Financial. Centuria Financial Group sells insurance products of Prudential Financial's affiliated insurance companies in addition to products of non-affiliated insurance companies. Centuria Financial Group is authorized to sell and service certain insurance products of Prudential Financial companies as well as use this material. Centuria Financial Group and its representatives do not give tax or legal advice. Please consult with your own advisors regarding your particular situation. Offering financial planning and investment advisory services and programs through Pruco Securities, LLC (Pruco), under the marketing name Prudential Financial Planning Services (PFPS), pursuant to a separate client agreement. Offering insurance and securities products and services as a registered representative of Pruco, and an agent of issuing insurance companies. 1-800-778-2255. Sara E. Martin and Jennifer McCabe are employed by David McCabe and not The Prudential Insurance Company of America or its subsidiaries.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
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