Portfolio Income is an income that is earned from the sale of stocks and bonds. It is an income that is earned when a stock or bond is sold. This is not a passive income because it requires some effort to get it.
There are two types of portfolio income, short-term and long-term. The short-term portfolio income is usually from dividends and interest. The long-term portfolio income is usually from capital gains.
Portfolio income is very important because it provides the investor with additional income. It also helps to diversify your investment portfolio.
There are many benefits to having a portfolio income. One benefit is that it allows you to invest in more than one stock or bond. For example, if you were investing in a mutual fund, you could have the option of investing in both growth and value stocks. This will give you a balanced portfolio. If you only had one stock, then you would be putting all your eggs in one basket. You would have no choice but to invest in that one stock if you wanted to keep your portfolio balanced.
Another benefit of having a portfolio income is that it helps to reduce the amount of taxes you pay. When you earn a dividend, you will receive it as a check in the mail. Therefore, you will not have to pay any tax on it. When you sell a stock or bond, you will receive a capital gain. This is a tax-free income.
Another benefit is that it allows you the opportunity to buy more expensive stocks and bonds. This will increase the amount of income you can earn. The higher the price of the stock or bond, the more money you can make.
One thing to remember is that portfolio income is not guaranteed. You still need to do your own research and due diligence before buying any stock or bond. You also need to watch the markets carefully so you can make sure the stock or bond you bought is going to continue to increase in value.