What is a solid income?
Fixed income can have several definitions. It can be defined as a safe and unchanging investment. For example, some people buy bonds and derive a safe income from them. In general, this is a low interest rate on bonds purchased, but it is also a guaranteed and static return rate. Basically, any investment with a guaranteed level of return is a solid income.
Mostly, when people hear a fixed income, they are to think that it concerns the payment of pension or income from social security, which is set for a specific amount. This is usually what people mean when they say they have a solid income. In other words, without receiving further investments without securing more income or without work, the person only receives his retirement or income from social security - sometimes both, so he does not increase or decrease. Since people now live longer than ever before, a small fixed income, abY has gradually plunged into poverty and could not live in a way he was accustomed to. Simple things, such as the increase in the price of gasoline, can significantly affect a person with little fixed income, making it impossible to travel or demanding, or even take small necessary trips to food stores or to the doctor's office.
Therefore, many financial advisors emphasize the importance of investment during your life, which will provide income far above what might be needed at present. It can only be expected that the prices of today's day will only increase and it is unlikely that someone could live comfortably with a fixed income that contains only social security payments. For this purpose, many companies have set up investment plans for their employees, such as401pc or pension plans, and many people privately invest part of their funds to facilitate life as soon as they retired.
Another type of fixedIt can be described as a reverse fixed income. This is when you borrow money from the creditor and promise to pay a certain amount every month or according to a regular payment plan. The amount you promise to pay is determined at a certain price, and if the loan is not negotiated, you become security for paying this amount. In other words, the amount of the payment is "solid" and you paid for a secure promise as needed.
The type of loan of this kind, such as a mortgage rate with a fixed interest on the house, can prove to be an investment. If you pay principle and interest per month for a housing loan, you can actually keep a part if real estate prices remain the same or increase. Therefore, even if you are a person who secures a loan and pays, it may eventually consider investment to help you retire the amount with fixed income because you could sell a house or mortgage to increase your income.