The Rules Of Investing Are Changing: Prioritize Income Over Potential Gains | Adam Taggart

Spiking inflation is pinching household budgets by raising the cost of living. It threatens to put an end to rising stock prices, too.

Which is why it may be time to prioritize investing for income over potential gains.

Most people forget this, but the overwhelming amount of long-term investment returns from the markets comes from stock dividends and interest income -- not higher prices.

Over the 40 years from 1980 to 2019, 75% of the S&P 500’s returns came from dividends -- much more than came from share price appreciation.

Income returns are like the tortoise in its famous race vs the hare. They’re the slow & steady approach that wins the race over time.

Not only have they mattered more historically in terms of building wealth, in an inflationary environment, income streams that can rise at the same pace as inflation (or even faster!) provide valuable protection. They prevent the inflation monster from reducing your overall purchasing power.

This requires a pretty big mindset shift from how most investors have been trained to think -- today it’s all about buying in to catch a rocket ride to a higher price tomorrow. Going forward, it’s likely going to be much more about purchasing an income stream that will put money in your pocket again & again & again.

Not only do investment income streams build wealth over time, but they also increase financial resilience and ultimately enable the ability to retire. It makes sense, right? The more passive income your portfolio generates, the less dependent you are on a job to cover your living expenses.

So, what are the options out there for income investing?

The good news is, there are a lot. It’s a wide spectrum that ranges from high dividend value stocks, to short-term lending, to real estate, to royalties, to side businesses -- just to list a few.

This is why I’ve written a helpful primer explaining the most common solutions available to income investors that you can get right now at: https://wealthion.com/income/

GET WEALTHION'S FREE PRIMER ON INCOME INVESTING at https://wealthion.com/income & then SCHEDULE YOUR FREE PORTFOLIO REVIEW with Wealthion's endorsed financial advisors at https://www.wealthion.com/

At Wealthion, we show you how to protect and build your wealth by learning from the world’s top experts on finance and money. Each week we add new videos that give you access to the foremost specialists in investing, economics, the stock market, real estate and personal finance.

We offer exceptional interviews and explainer videos that dive deep into the trends driving today's markets, the economy, and your own net worth. We give you strategies for financial security, practical answers to questions like “how to grow my investments?”, and effective solutions for wealth building tailored to 'regular' investors just like you.

There’s no doubt that it's a very challenging time right now for the average investor. Above and beyond the recent economic impacts of COVID, the new era of record low interest rates, runaway US debt and US deficits, and trillions of dollars in monetary and fiscal stimulus stimulus has changed the rules of investing by dangerously distorting the Dow index, the S&P 500, and nearly all other asset prices. Can prices keep rising, or is there a painful reckoning ahead?

Let us help you prepare your portfolio just in case the future brings one or more of the following: inflation, deflation, a bull market, a bear market, a market correction, a stock market crash, a real estate bubble, a real estate crash, an economic boom, a recession, a depression, or another global financial crisis.

Put the wisdom from the money & markets experts we feature on Wealthion into action by scheduling a free consultation with Wealthion’s endorsed financial advisors, who will work with you to determine the right next steps for you to take in building your wealth.

SCHEDULE YOUR FREE WEALTH CONSULTATION with Wealthion's endorsed financial advisors here: https://www.wealthion.com/

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IMPORTANT NOTE: The information and opinions offered in this video by Wealthion or its interview guests are for educational purposes ONLY and should NOT be construed as personal financial advice. We strongly recommend that any potential decisions and actions you may take in your investment portfolio be conducted under the guidance and supervision of a quality professional financial advisor in good standing with the securities industry. When it comes to investing, past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in partial or total loss.