Delayering The Dividend Snowball For Long-Term Income Investors

Esa Hiltula The objectives of income investing could be split into two broad categories: 1) to fund living expenses and retirement with the portfolio distributions without tapping into the principal itself, and 2) to pocket current income that could be reinvested back in yield-bearing assets, thereby facilitating the so-called "snowball" effect. In practice, it might be so that during the pre-retirement period, investors apply the second approach and then once the retirement kicks in, the portfolio proceeds ...