5 tips for generating income in an inflationary environment

With inflation and the rising cost of living, many investors want a portfolio that generates enough money to spend now and into the future. Here are five tips on how you can generate income in a high-inflationary environment.
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[@_michaelcao]

Great tips Chris!

[@ChrisBryckiStockspot]

Thanks Michael, great to hear from you! Hope you're doing well.

[@deepakn6760]

Thanks for the tips Chris. I generally follow your videos to learn about investments. You did mention that bonds go down in high inflation high interest rates environment. What's your opinion on floating rate bond ETF (example betashares QPON)? I have seen that these ETFs have provided steady income over last 5 years when other bond ETFs have gone down.

[@ChrisBryckiStockspot]

Great question! The interest rate duration aspect in a traditional fixed rate bond portfolio plays a crucial role in diversifying most balanced portfolio construction strategies including ours at Stockspot. It's based on the idea that fixed rate bonds will act as a buffer when share markets decline due to their negative correlation with shares. However, as you point out, this assumption can be challenged in situations where rapidly rising bond yields, driven by factors like inflation, negatively impact both bond and equity markets simultaneously. Instead of relying on floating rate bonds for protection against inflation, we prefer to include gold in our portfolio. You can find more information about our perspective on gold in this article: blog.stockspot.com.au/buy-gold/ Hope this helps clarify our approach!

[@terrytran2021]

Thanks for the tips Chris. Who can we reach out to to learn more about tax implication on our investments?

[@ChrisBryckiStockspot]

Terry, here are a few articles we've written on tax as it relates to ETF investments (blog.stockspot.com.au/stockspot-tax-documents/, blog.stockspot.com.au/how-are-etfs-taxed-stockspot/). If you'd like more specific advice it would be best to speak with your accountant or tax adviser.