Introduction
Trying to get a regular, sustainable income over a substantial period of time has become more challenging in recent years.
Savers have given up now in bank deposits, and despite the respite in the UK's economy, interest rates are not going anywhere.
The typical place for getting income is from equities, but even these are under pressure. Many feared soon after the Brexit vote, that companies will not be in a strong enough position to continue paying out dividends. Perhaps the exporters might disagree, but the general expectation is that dividends cannot be relied upon in the conventional manner.
Some investors are starting to look at alternative assets, one of these being infrastructure. These are funds that invest in companies involved in big infrastructure projects such as hospitals or schools. Many of these are based on public private partnership funding, which promises regular payments based on certain performance criteria.
But sustainable income has become even more important in the post pension-freedoms world, as pensioners look for alternatives to annuities. Many have a substantial pot to invest and to derive a regular income from to sustain them in their retirement; some will look at income drawdown, but that will make choosing the right investment even more time-consuming.
Whatever one's reason, the quest for sustainable income has become stronger than ever, at a time when it has become quite challenging.