If you are not sure whether, or which, investment companies are suitable for you, you should consider taking independent financial advice.
Managing income in retirement can be complicated, as you need to consider your income needs, how these might grow due to inflation, how long you might need this income for and whether you want to hand on assets after you die. This could mean that another option, such as an annuity, might be better for you.
A financial adviser can talk all this through with you and recommend a portfolio tailored to your needs. You should ask them whether they use investment companies or not.
Take your pick: The AIC website can help you narrow down your search for an income-producing investment company.
Create your own Watchlist on our site to keep track of your chosen investment companies. Visit the Glossary on the AIC website for simple explanations of key terms.
The ‘Find and compare investment companies’ section of our site lets you sort investment companies according to your investment needs. If you are looking for income, you can search by ‘Income’ or ‘Growth and Income’. You can then refine your search by geographical area, asset class or management group. One figure that you might be interested in is the ‘Dividend yield’. This is the most recent annual dividend paid by an investment company expressed as a percentage of the current share price. The dividend yield can give you an indication of the level of income you might get from an investment company share.
However, depending on the performance of the company, future dividends may be higher or lower than indicated by the current dividend yield.
Once you have a few investment companies that might be suitable, you can click through to the individual company pages for a wealth of other information.
The dividend yield can give you an indication of the level of income you might get.
When it’s time to deliver income, investment companies have some unique advantages.
Visit the AIC website for news, statistics and comment on investment companies.
This document is for information only and does not constitute investment advice or a personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment mentioned here. The Association of Investment Companies has taken all reasonable steps to verify the information contained in this document but does not accept responsibility for any errors or omissions or for losses of any nature incurred by any person acting or refraining from action in reliance on such information. This document may not be printed, reproduced or further distributed to any other person or published, in whole or in part, for any purpose.
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