The following is an excerpt from Richard Russell’s web site called the Dow theory letters. This is such an obvious statement that we at investing for income feel we must remind you of this simple rule.

Richard writes “DON’T LOSE MONEY: This may sound naive, but believe me it isn’t. If you want to be wealthy, you must not lose money, or I should say must not lose BIG money. Absurd rule, silly rule? Maybe, but MOST PEOPLE LOSE MONEY in disastrous investments, gambling, rotten business deals, greed, poor timing. Yes, after almost five decades of investing and talking to investors, I can tell you that most people definitely DO lose money, lose big time — in the stock market, in options and futures, in real estate, in bad loans, in mindless gambling, and in their own business.”

This excerpt is another the key to riches and wealth using Canadian income trusts. These trusts pay dividends but if you pay too much for them you will erode your initial capital base and worse, you may have reduced future income streams.

When you invest for income you will have to sacrifice a certain amount of capital gains potential so it?s very important that you undertake proper due diligence.

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