Income with Growth

Income with growth means a revenue stream plus opportunities to increase the capital. There’s definitely some cash flow from these investments, but here the investor is acknowledging that inflation plays a role in diminishing capital. This is important to consider, especially if you’re younger.

Randi is only 56. She has investments from a divorce settlement. Her personal life has been altered dramatically by her change of status. Randi learned the Rule of 72 (described in Chapter 9, “Appreciate the Value of Holding on to What You Have,”) while educating herself about handling money. She also learned that inflation has historically averaged a 3% rate. By dividing 3 into 72, she knows that in 24 years she will need twice the ...

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