Too many prospective and new income investors don't get started with an income investment program because they're trying to time the stock and bond markets.
Depend on Yourself, Not the Markets
This is a suboptimal strategy. Income investing should be about investing taking control over your financial future, not giving the overall financial markets the power to determine when and where they invest.
The best time to begin investing for income is when you're personally ready.
That's it.
Lay a Firm Financial Foundation for Your Entire Life
Take care of your other financial obligations. Educate yourself. Get a good job. Start a good business. Pay off all debts except your house. Don't go into new debt except to buy a house, a business or to meet an emergency.
Take out insurance to support your loved ones. Put aside a three to six month emergency fund in a money market account.
If you have to, sell half your belongings on eBay and the other half in a garage sale. Work a second job. Provide online services on sites such as fiverr.com .
Take advantage of any matching to retirement account contributions that is available to you on your job. Max out your retirement plan contributions whether it's a 401(k), 403(b) or federal Thrift Plan at work, IRA or Roth IRA on your own, or one for the self-employed.
If you need to, save some money for your children's college educations. If you want to, save money for a home downpayment, marriage ceremony or vacation.
Start to Invest When You Can Afford To
When you've done all that, it's time to start income investing for retirement.
Notice that I put all the emphasis on you and your family's personal financial situation -- and none on the state of the markets.
Once you're personally ready to get started, open up an account at a online discount brokerage and start.
Bear Markets Allow You to Buy Income Investments at Lower Prices
If we're in the middle of a bear market (as we are now as I write this article), great! You can buy securities at historically low prices.
If we're in the middle of a bull market (as we will be again -- someday), then you will just have to pay the required market prices.
Keep Your Head While Everyone Else is Losing Theirs
My strong advice is, whether it's a bull or bear, is don't get caught up in the dominant emotion.
Don't let the fears of others keep you from buying high quality income investments during a bear market. Yes, their price may fall some more. Then you can buy even more for a lower price.
Don't let the greed of others keep you from buying high quality income investments during a bull market. Stay away from the hot trend unless it's an investment that pays a good income (not likely).
Stay Away From What Everybody Else is Buying - You'll Pay Too Much
Whatever is in fashion, is too expensive. The more popular a fad is, the farther away you should run from it. That's a basic rule of investing whether you want income or capital gains.
Unless you're within five or ten years of departing this planet, you're going to see both bull and bear markets.
Stick to an income investing program of buying as many income investments as you can afford, and reinvesting your investment income into more shares.
Author Resource:
You can build a permanent, income generating retirement portfolio. Click here to get the information you need to effectively make money from your investments whether the markets go up or down. If you're ready to discover how an income investment can help you retire with financial security, visit this page, enter your email address into the form and click on the Submit Button. Then go to your inbox and verify that. It's free for the taking. http://www.incomeinvesthome.com/.
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