Investment Math – TR = I + G

Got your thinking caps ready? Time for some investment math:

Total Return = Income + Growth

When you invest for growth, it’s all about capital appreciation and your entire goal is to buy low and sell high. You could make a lot of money, but you could also lose a lot of money.

When you invest for income, the value of your portfolio doesn’t matter. You’re investing for the interest and dividends that the portfolio will give you. You know that, year in and year out, you can count on the income from your portfolio, regardless of what the market does.

Are you investing for the I or for the G? Which is better? Listen in.