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Blink 3 of 8 - The 5 AM Club
by Robin Sharma
Income on Demand summary
Jonathan D. Bird
Brief summary
Income on Demand by Jonathan D. Bird offers a comprehensive guide to creating a steady stream of income through various investment strategies. It provides valuable insights and practical tips for achieving financial security and independence.
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Table of Contents
Income on Demand
Summary of key ideas
Understanding the Income on Demand Strategy
In Income on Demand, Jonathan D. Bird introduces a unique investment strategy designed to provide a reliable income stream during retirement. The strategy, which he calls the Income on Demand (IOD) portfolio, focuses on generating income from a diversified set of assets, including stocks, bonds, and real estate investment trusts (REITs). Bird explains that the IOD strategy is designed to shield investors from market volatility while ensuring a steady cash flow.
Bird begins by discussing the flaws in traditional retirement income strategies, such as the 4% rule, which assumes a constant withdrawal rate from a portfolio. He argues that these methods are not reliable, especially during periods of market downturns. Instead, the IOD approach emphasizes the importance of generating income from various sources, allowing for greater flexibility and security.
Building the IOD Portfolio
The next section of Income on Demand focuses on constructing the IOD portfolio. Bird advises investors to divide their assets into three main categories: income, growth, and cash. The income portion, which includes dividend-paying stocks and bonds, forms the basis of the portfolio's cash flow. The growth section consists of stocks with potential for capital appreciation, while the cash segment serves as a buffer for market downturns and unexpected expenses.
Bird emphasizes the importance of diversification within each category to reduce risk. He also introduces the concept of 'income floors' and 'growth ceilings' to help investors balance their income and growth objectives. The income floor represents the minimum level of income required to cover essential expenses, while the growth ceiling sets a limit on the risk taken to achieve higher returns.
Implementing the IOD Strategy
After outlining the components of the IOD portfolio, Bird provides a detailed guide on how to implement the strategy. He explains the process of selecting suitable assets for each category, taking into account factors such as dividend yield, credit quality, and growth potential. Bird also discusses the importance of periodic rebalancing to maintain the desired income and growth targets.
In addition to asset selection, Income on Demand covers the tax-efficient management of the IOD portfolio. Bird suggests strategies such as tax-loss harvesting and asset location to minimize tax liabilities and maximize after-tax returns. He also addresses the role of annuities and other income-generating products within the IOD framework.
Monitoring and Adjusting the IOD Portfolio
As retirement approaches, Bird emphasizes the need for ongoing monitoring and adjustments to the IOD portfolio. He introduces the concept of the 'retirement red zone,' a critical period five years before and after retirement when market volatility can significantly impact retirement income. During this phase, Bird recommends gradually shifting the portfolio's focus from growth to income, reducing risk exposure while ensuring adequate cash flow.
Finally, Income on Demand discusses the importance of contingency planning within the IOD strategy. Bird suggests establishing emergency funds and insurance coverage to protect against unexpected expenses or adverse market conditions. He also encourages regular reassessment of retirement income needs and portfolio performance to ensure the IOD strategy continues to meet its objectives.
In Conclusion
In conclusion, Income on Demand offers a comprehensive guide to building a retirement income strategy that prioritizes reliability and flexibility. By emphasizing diversified income sources and careful portfolio management, Bird's IOD approach aims to provide retirees with a dependable cash flow while minimizing the impact of market volatility. Whether you're nearing retirement or planning for the future, Income on Demand presents a compelling alternative to traditional retirement income strategies.
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What is Income on Demand about?
Income on Demand by Jonathan D. Bird is a comprehensive guide to creating a steady stream of income through various investment strategies. The book offers practical advice on building a portfolio that generates consistent cash flow, regardless of market conditions. With real-life examples and step-by-step instructions, Bird empowers readers to take control of their financial future and achieve financial freedom.
Income on Demand Review
Income on Demand (2019) by Jonathan D. Bird explores innovative strategies for generating income in a rapidly changing economic landscape. Here's why this book is worth your time:
- Chock-full of practical income-generating techniques, it equips readers with the tools to capitalize on emerging opportunities and secure financial stability.
- By delving into modern work trends and remote earning options, the book offers a forward-thinking approach to building wealth in today's digital age.
- Its dynamic and engaging insights keep the reader captivated, ensuring a stimulating read that proves that making money doesn't have to be mundane.
Who should read Income on Demand?
Individuals approaching retirement age who want to generate consistent income from their investments
People looking for alternative strategies to traditional dividend-focused stock investments
Investors who want to minimize taxes and maximize their investment returns
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Book summaries like Income on Demand
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Income on Demand FAQs
What is the main message of Income on Demand?
Discover how to generate income consistently and on your terms.
How long does it take to read Income on Demand?
Reading time varies. The Blinkist summary only takes minutes.
Is Income on Demand a good book? Is it worth reading?
Income on Demand is worth reading for practical strategies on creating a steady income.
Who is the author of Income on Demand?
Jonathan D. Bird is the author of Income on Demand.
What to read after Income on Demand?
If you're wondering what to read next after Income on Demand, here are some recommendations we suggest:
- Basic Economics by Thomas Sowell
- The Ascent of Money by Niall Ferguson
- Think and Grow Rich by Napoleon Hill
- The 4-Hour Workweek by Tim Ferriss
- Rich Dad, Poor Dad by Robert T. Kiyosaki
- Secrets of the Millionaire Mind by T. Harv Eker
- The Richest Man in Babylon by George S. Clason
- Business Adventures by John Brooks
- The Most Important Thing by Howard Marks
- More Money Than God by Sebastian Mallaby