Many people who pursue a strategy of current income are retired and use the income for living expenses. Other people take advantage of a lump sum of capital to create an income stream that never touches the principal, yet provides cash for certain current needs (college or retirement, for example

A combination of capital growth and current income is by far the most common and flexible strategy that can be tailored to the client's specific life stage, family dynamics, income needs and risk tolerance. A common variation of the balanced strategy involves implementing a more aggressive approach early in life, and a more conservative investing style as clients approach their later years.