The financial press regularly reports that investors can increase income by investing in longer-term securities or by taking on more risk.
This advice usually appeals to retirees who, particularly in this low-income environment, are always looking for ways to generate more cash.
Markets are generally efficient and there are few, if any, ways to get that income without taking more risk. To quote a familiar trope, there is no free lunch. But such articles do help consumers if they are prompted to understand the nature of risks.
Here are the ways I think about risk when it comes to generating income.
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