Income Plus Strategy: Grow Your Earnings

The Income Plus Strategy is an investment approach designed to provide investors with a steady stream of income while also offering the potential for capital appreciation. This strategy typically involves a diversified portfolio that includes a mix of fixed-income securities, equities, and alternative investments, aiming to balance risk and return to meet the financial objectives of moderate-risk investors.

• Dividend-Paying Stocks

  • These stocks provide regular dividend payments, offering a steady income stream while also having the potential for capital growth.
  • Companies with a history of increasing dividends can be particularly attractive, as they often reflect financial stability.

• Bonds

  • Bonds are fixed-income securities that pay periodic interest, making them a reliable source of income.
  • Options include government bonds, municipal bonds and corporate bonds, each with varying risk levels and returns.

• Real Estate Investments

  • Real estate can be an effective way to generate income through rental properties, real estate investment trusts (REITs) or crowdfunding platforms.
  • This asset class often appreciates over time, adding the potential for capital gains.

• Income-Generating Alternatives

  • Peer-to-peer lending platforms allow investors to earn interest by lending money directly to individuals or businesses.
  • Other alternatives could include options trading or investing in commodities that provide income.

• Conservative Strategy

  • Focuses on low-risk investments such as high-quality bonds and dividend-paying stocks.
  • Aims for stability and consistent income rather than high returns.

• Balanced Strategy

  • Combines a mix of equities and fixed income to achieve moderate growth and income.
  • Suitable for investors willing to accept a bit more risk for potentially higher returns.

• Aggressive Strategy

  • Involves a higher allocation to stocks and alternative investments, aiming for significant capital appreciation.
  • This strategy can be more volatile but offers the potential for higher income and growth.

These are hypothetical or personalized asset allocations designed to achieve specific income and growth objectives based on an individual’s risk tolerance and financial goals.

• Example 1: Conservative Income Plus Portfolio

  • 40% in dividend-paying stocks
  • 50% in bonds
  • 10% in cash or cash equivalents

• Example 2: Balanced Income Plus Portfolio

  • 60% in dividend-paying stocks
  • 30% in bonds
  • 10% in real estate investments

• Example 3: Aggressive Income Plus Portfolio

  • 70% in dividend-paying stocks
  • 20% in alternative investments
  • 10% in bonds

These are professionally managed investment products or funds offered by financial institutions, aiming to provide investors with income and potential capital appreciation through diversified asset allocations and strategic management.

• Example 1: Origin IncomePlus Fund

  • A private real estate fund targeting moderate-risk investors seeking both income and appreciation by building, buying, and financing multifamily properties.

• Example 2: AGF Fixed Income Plus Strategy

  • An actively managed investment-grade fixed-income strategy focusing on high-quality Canadian government or corporate securities, supplemented with alternative income-oriented asset classes.

• Example 3: Potomac Income Plus Strategy

  • A tactical ’total return’ strategy aiming to provide stable and absolute returns under all market conditions by tactically allocating across various income-generating assets.

• Core Plus Strategy: A value-oriented fixed income strategy that invests primarily in a diversified mix of U.S. dollar-denominated investment-grade fixed income securities, with the flexibility to include below investment-grade bonds and non-U.S. securities.

• Goal-Based Investing: An investment approach that focuses on achieving specific financial goals by tailoring investment strategies to meet those objectives, often incorporating a mix of asset classes to balance risk and return.

• Rebalancing: Regularly adjusting the portfolio to maintain the desired asset allocation.

• Tax-Advantaged Accounts: Utilizing accounts like IRAs or 401(k)s to maximize tax efficiency on income.

• Dollar-Cost Averaging: Investing a fixed amount regularly to reduce the impact of market volatility.

The Income Plus Strategy is an effective way to create a sustainable income while also allowing for growth in your investment portfolio. By understanding its components and tailoring it to your risk tolerance and financial goals, you can maximize your earning potential. Whether you are nearing retirement or simply looking to enhance your financial position, this strategy offers various pathways to achieve your objectives.