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The income-driven approach focuses on generating direct cash flow, emphasizing immediate dollar returns. While this might seem appealing, the drawback is that it often leads to generating income without accumulating more assets. Investors might see short-term gains but ultimately miss out on profit potential when the market turns bullish.
Growth-Driven Approach
In contrast, the growth-driven approach prioritizes increasing one’s asset base over immediate income. By investing in high-quality assets that are fundamentally sound, investors are positioning themselves for substantial profits when market conditions improve. This method requires patience and long-term commitment, but the potential for larger returns is commendable.