Investment for monthly income strategies
Henson crisp offer a wide range of investment for monthly income strategies, all of them being carefully tailored to meet the needs of the individual investor the amount of income they require.
The right combination of investments, with their associated levels of risk, can be different for each client. This depending on their need for income and their attitude to risk. The fact of the matter is, that the higher the level of income required from an investment, the greater the risks that would need to be taken in order to meet this need. This is a matter of great importance and needs to be thoroughly discussed at the planning stage.
At Henson Crisp Limited, we focus on achieving and maintaining a thorough understanding of your financial needs and aspirations.
From experience we know that the best wealth management / income generation service can only be provided through personal, face-to-face advice.
Our knowledgeable financial advisers provide that service, supported by a comprehensive range of financial solutions and a measured approach to investment management.
Better still, Henson Crisp firmly believe in continually reviewing and refining your financial plans over time, so as to match your needs and circumstances over the years, so you can sure that an optimum solution will be provided over the longer term too.
Generating income from investments
For many people during their lives, especially in their retirement years, generating income from investments is an important requirement.
If you are in this position - looking to organise your investments for income - then you will need to consider, weigh up and deal with a number of factors.
When considering your income required it is best to start with a view of what income do you need in total? Then to look at sources of income which do NOT come from investments, such as a salary or a regular pension payment, maybe the state pension, and then to see what level is required from your investments to top this up.
You should stretch this view over a multi-year period, well into the future, to consider the picture this produces in the longer-term.
It is always worth exploring your overall income/expenditure position, can you alter your cash flow or expenditure patterns to reduce or change your income needs?
This is an exercise which is often forgotten, as there may well be ways to reorganise to change the pattern.
A great example might be a situation where you have a mortgage outstanding, which requires a regular monthly payment. You have the money available to pay the mortgage off, should you clear the mortgage or keep the sum available?
Looking at your income/expenditure pattern and needs into the longer-term may help with the answer.
Once you have firmly established your income requirement and projected this into the future to see how this varies, if at all, as you progress through the years, this should provide a clear indication of the income required from investments.
You can then view your available investments to see what percentage is required each year to produce the income.
There is a general rule that the higher the income percentage you require, the more you will need to place into riskier assets.
That's because higher income generating investments normally come with greater risk to the capital.
For example using dividends from shares, even when you use a fund, could produce more income than a bank account but the share price, of the shares you invest into, could reduce the value of the shares or the fund if that is what you use.
The value of your capital could fall
The different investments available to you to produce the income you require will have different risk levels attached and different income amounts available. You will need to assess your attitude to risk, which can be a detailed exercise in its own right, before you can start to select the most suitable investment mix.
What about your tax position and protection measures?
You will also need to think about your tax position and how you can efficiently use tax allowances and tax efficient investments to support your needs.
None of us know what the future holds, both in terms of the investment world and future returns, inflation or interest rates, but also in terms of personal circumstances. These unknown factors mean that protection, wherever possible, should be built in to solutions and flexibility to make changes are incredibly important.
This makes the exercise of investing for income one which should be reviewed on a regular basis.
Putting together an investment portfolio to generate income is a case of balancing out all of these aspects, which need to be weighed carefully against each other and must suit your personal situation.
We help tailor investment solutions for investors seeking income, working with you to get the balance that is just right for you and your family.