Growth And Income Investing + Why You Should Invest In Both

Some people focus on growing money they already have, while others want more money coming in passively, and still others desire a hybrid method. Once you’ve decided how you’re investing, you need to choose a strategy for picking specific investments. 

Growth investors want all earnings kept in the asset since this allows the investment to grow faster while income investors want profits returned as a form of income.

What are Growth and Income Investing?

Growth investing is focused on buying appreciating assets, meaning you obtain assets you expect to increase in value. 

→ Growth Investors

The goal of income investing is to design a portfolio of income-generating assets that provides dependable cash payouts. These payouts can be reinvested or used for current living expenses. 

→ Income Investors

You can diversify your portfolio with various stocks, bonds, and alternative investments to ensure you have a combination of growth investments and income investments. 

Can You Invest for Growth and Income?

The type(s) of growth investment(s) you should choose when investing money for growth depends largely on your risk tolerance.

How Can I Invest Money for Growth?

Growth and value are the two basic styles when choosing stocks or stock mutual fund investments. Growth investors look for fast-growing companies they expect to continue to grow at above-average rates. These are often, but not always, young companies. 

Growth vs. Value Investing

Investing money for income can be done by investing in a large number of assets. Some of the most popular income investments include bonds, high-yield savings accounts and certificates of deposit and are all generally considered the safest types of income investments.

How Can I Invest Money for Income?

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