Ken Fisher Explains Investment Income vs. Cash Flow

Fisher Investments’ founder, Executive Chairman and Co-Chief Investment Officer Ken Fisher says most investors think about investment income incorrectly and provides a new perspective. According to Ken, many investors believe they can spend any interest or dividends generated from their investments as long as they don’t reach into their principal investment. However, relying only on investments that generate income may be misguided. Ken shares a tip that can help investors meet their cash flow needs with an eye on a healthy long-term future.

Ken explains how you may be able to generate cash flow by strategically selling off assets and withdrawing the proceeds—a process he refers to as generating “homegrown dividends.” Rather than solely focusing on traditional income investing options, Ken believes cash flow planning based on total portfolio return is likely a better strategy for many investors.