Should a young investor (mid 20s) look into income generating assets like high dividend yield equity and REITs? Or should we focus more on growth/value stocks?

I personally believe in the holistic approach of cash flow and goals to determine your investment of income vs growth.

Your cash flow should be easy since you are young and I know goals are fluid, especially at the younger ages but just take an hour to do this and that should be used to determine the split between growth and income.

I personally put 80% in growth and 20% income at the age of 25. The income part I put some in HYG (high yield bond etr) so I have exposure to bonds too. (QL3 & O9P on sgx)

Hi there!

As a young investor, time is on your side - which is a big plus! As the saying goes, time in the market is more important than timing the market.

Being able to take a long term view on things, commission costs are not too big of a deal. Make steady contributions by allocating a certain portion of your income and reinvesting dividends.

Personally, I'm a huge advocate for dividend growth investing because:

1. It suits my financial goals of passive income

2. Gives me clarity on which companies to invest in and which not to

3. Historically, dividend companies outperforms growth companies as a whole

I've a 12-minute video documenting my 2020 dividend growth portfolio and why it works for me. Check it out here!

Hope this helps :)

If you are willing to take some risk/low in capital, it is better to go for risker stocks that reward you more. if you are only willing to take limited or low risk, going for dividend is better.

I think that's what proper portfolio allocation comes into place. Given how time is on your side, and if you are a rather mid-high risk individual, you could consider allocating a higher percentage into growth / value stocks, a portion in REITs for passive income and the remaining in cash. Revisit this portfolio allocation every year and rebalance your portfolio (buy the shortfall, sell the gains)