Courtney Moeller warns against relying solely on paycheck income, citing examples of seemingly stable jobs and companies disappearing. She advises funneling income into a diversified base of assets (5–10 asset classes) so losses in one area can be borne by others during turbulent times.
The thing that's scary about income only is I know people that thought they had really good, stable jobs and those companies disappear. The high income is great, but make sure that you're taking that high income and funneling it into a good base of diversified assets. And so you're going to have tough things that happen in all these different things. Interest rates go up, you know, things can get foreclosed on, stuff can go bad. But when you have your money across five to 10 different asset classes, if there's a turbulent hard time going on in one, you've got all the these other ones to kind of carry the weight till that other one's back to being in the strong position.
