1.# Dividend income is predictable. Stock prices go through both bull and bear markets, with the latter often showing up at the worst times. Managing high-yield investments, as I recommend, will produce an income stream that grows every quarter.

2# Managing a portfolio to grow your income makes it easy to live through market downturns. When stocks go down, income-paying investments go “on sale,” allowing dividends to be reinvested at higher yields, growing income even faster.

3#Investing to build an income stream makes it easy to determine how much you can pay yourself in retirement. When you stop working, you start drawing a portion of your dividends, knowing exactly how much you can pay yourself out of your retirement savings. I get many notes from subscribers saying their retirement income is much higher than they planned for.

by Tim Plaehn