Portfolio Income By Robert Serina At Isnare.com Ezine Articles

People who have the goal of increasing their portfolio income usually still work for an earned income. Focusing on building a portfolio is middle class strategy. This means you are still working for money. Some examples of portfolio income include...

* Stocks
* Bonds
* Mutual funds
* Savings
* 401k
* IRA

The average person hopes to get a raise and increase their earned. With a focus on earned income and portfolio your cash flow pattern remains middle class. The reason for this is you never acquire assets and you never convert any earned income into a passive income.

There is a couple points that should be considered when discussing portfolio income.

Anytime you hand the responsibility for your finances to someone else you are doing yourself a disservice as well as adding a middle man. Most people have never met their 401k broker but they assume he is qualified and has picked out a very balanced portfolio. Consider the fact that if all of your portfolio is American companies and the American dollar crashes you will lose everything.

At some point people naturally want to improve their situation. This requires an increase in your knowledge and understanding in order to increase your ability. Unfortunately, if you are focused on producing an earned income and your main goal is retirement, than you are limited in the amount of time you have to invest to become a more sophisticated investor.

By not understand more sophisticated investment strategies, you are likely to remain focused on earning your income and increasing your portfolio holdings with your retirement in mind. You may believe you are "investing" for retirement, but in reality you are only saving.

If your goal is to save for retirement, than you will probably always work for an earned income and save for retirement in a portfolio. However, if you are willing to change your focus to passive income, with your main goal being your financial independence, than you will be on the path to becoming wealthy as long as you have the persistence.

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