Income Generation Profile
Secure Income Investors:
• Require a relatively low level of return to fund income goals
• Have a portfolio sufficient to meet stated income needs, while
protecting against the impact of inflation
• Seek a secure rate of return, and are willing to accept lower returns
in order to minimize fluctuations in portfolio value
• Require moderate to high liquidity needs, seeking the option to
withdraw lump sum amounts, if required, beyond stated regular
income needs
Balanced Income Investors:
Your answers to the BMO Investor
Profiler questions indicate that you
need a level of income from your
investments. While every investor
is unique, there are common
characteristics that group income
investors into 3 broad categories:
1) Secure Income Investor
2) Balanced Income Investor
3) Growth & Income Investor
Note that this classification might not
reflect your investment risk tolerance
level; it merely indicates the ability of
your portfolio to generate the stated
amount of investment income. The
premise of this classification is that
an income investor should take on
the lowest amount of risk required
to generate the income they need.
®/™
• Require a moderate return with low variability in recurring income
distributions to realize income needs
• Current investment portfolio might be sufficient to fund the majority
of both current and near-term income needs, however, a longer
horizon might require protection against the impact of loss of capital
on their income stream
• Might require higher portfolio returns to supplement a fixed stream
of payments
Growth & Income Investors:
• Require a high level of income to fund income goals, as well as a
high level of return in order to meet future income goals
• Require a higher rate of return on their investment portfolio to
ensure that their capital base is not prematurely depleted
• Need to maximize long-term returns, while remaining within their
risk tolerance level, through a well-diversified investment portfolio
that includes equities and other asset classes
Each category has common attributes that will affect the types of
products suitable to meet your income needs. However, the actual
products in a portfolio will be specific to your goals and circumstances.
Speak to an investment professional at BMO Bank of Montreal about
developing a personalized income investment plan to help you reach
your income goals.
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