LGI - Growth Income Or Annuity? Closed-End Funds Can Be All Three

• Closed-end funds tend to be mostly thought of as income vehicles, but they are actually quite versatile and can play many roles in a portfolio.
• CEFs can be used to grow a portfolio over many years, or as an income vehicle, or even as an annuity if we are later in our investing career.
• Which role our funds play depends on (1) the funds we choose and their distribution policies, and (2) how we choose to re-invest and compound (or not) their distributions.
• Some closed-end funds routinely distribute more than they earn, making them a sort of "annuity," depending on what we do with the distributions.
• This can work to our advantage - or not - depending on our personal goals and where we are in our investment career.

For further details see: