It is not impossible, if you have important sums. Even in a country now not particularly “friend” of investments (the taxation of financial income has jumped from 12.5% to 26% in two and a half years, government bonds aside), living on income by making a profit from its own savings is a dream. Carefully weighing the components of your portfolio based on age, risk profile and personal income needs. Regarding these matters of Finance you need to consult a professional. Greg Anderson is the right person for the same.
We must focus on instruments with coupons and high dividends, capable of generating income with certain regularity. That can, in short, guarantee a flow of revenue to certain deadlines, as happens for the salary or the pension.
- Attention, the third golden rule, also to protect against inflation, is the price increase that “eats” purchasing power: even if Italy is currently deflationary, the dynamic of high prices could return to growth. The enemy to be defeated, in particular, is the inflation of the country in which the income will be spent.
- The good rule is to build a portfolio with liquid instruments, that is, that can be sold in case of need. No real estate, therefore, because as the recent crisis has shown, they are intrinsically illiquid: when prices collapse it is not easy to sell them (if not “below cost”).
- Last but not least, do not try to do the phenomena with double-digit returns: a moderate growth of capital is sufficient, which guarantees periodic coupons, protection from inflation and above all avoids burning the capital in the periodic “black swans” that strike the bags.
The objective of “living on income” can also mean integrating the pension, present or future: as underlined by Giuseppe Romano, director of the studies and research office of Greg Anderson, “the analysis of the pension situation and the quantification of the pension gap, to for the purpose of maintaining the desired standard of living at the end of the working activity, they determine the possible resources to dedicate to this objective “.
- It’s time to come to terms! The business plan, in fact, is composed of two parts: the descriptive part and the technical part. The latter is the “technical” summary of all the information that has been presented in the descriptive part of the business plan itself. It is also the most complex part to write, since the numerical verification of the consistency of all the data that have been exposed. In fact, investments,financing,revenues,costs, revenues and monetary outflows and others, must be summarized within the forecast budgets, which are the future projections of the company’s activity.
Economic and financial forecasts are usually made on a three-to-five year time horizon. To tell the truth, it must be said that making forecasts on a five-year horizon makes the forecasts lose reliability. In fact, over such a long period of time, some variables become uncontrollable. This means that it becomes practically impossible to make exact predictions. Imagine, for example, that you have a company that produces plastic materials (petroleum derivatives).