Which phrase best describes an income investment strategy?A.Building a diversified portfolio to generate incomeB.Keeping money in liquid, low-risk assetsC.Eliminating long-term retirement planningD.Focusing on cash investments
Question
Which phrase best describes an income investment strategy?A.Building a diversified portfolio to generate incomeB.Keeping money in liquid, low-risk assetsC.Eliminating long-term retirement planningD.Focusing on cash investments
Solution
The phrase that best describes an income investment strategy is A. Building a diversified portfolio to generate income. This strategy involves investing in a variety of assets that are designed to provide a regular income. This could include dividend-paying stocks, bonds, real estate, and other income-generating assets. The goal is to create a steady stream of income, often for retirement purposes.
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