Invest For Income When Volatility Is This Extreme | Steven Bavaria

Get more income with less risk

When stocks are as richly valued as they are today, investors, especially older ones looking to live off of the wealth they've already built, start to prefer safer assets that provide income.

Today's guest, Steven Bavaria, author of The Income Factory, has appeared several times on this channel sharing his approach to income investing which he claims can deliver similar long term returns as stocks, but with a greater margin of safety.

Steven returns today to give us an update on how his approach is working here in 2025 -- a year of heightened stock price volatility and elevated bond yields so far.

For all the details on how to design a portfolio for more income with less risk, click here or on the video below:

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Adam’s Notes: Steven Bavaria (recorded 6.9.25)

EXECUTIVE SUMMARY:

• Income Factory Framework: Steven Bavaria’s Income Factory aims for 9-12% steady yields through high-yield credit (75%) and equities (25%), using closed-end funds to match S&P returns with lower volatility.

• 2025 Performance: In 2025’s volatile market, the portfolio yields 10-12%, matching S&P total returns, with reinvested income offsetting paper losses and boosting income growth.

• Stability Advantage: Unlike equities’ wild swings (e.g., S&P’s 2025 panic), the Income Factory delivers predictable income, ideal for retirees seeking stability.