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Bonds. These are generally regarded as among the safest income investments, as they are essentially a loan made with the promise of more being repaid than what is loaned.

Dividend Stocks. These are stocks that pay out a portion of their earnings or cash flow to their investors on a recurring basis.

Covered Calls. Individuals who own a stock can sell a call option -- the right, but not the obligation, to buy the stock they own -- as a way of generating income. If call option is not exercised -- meaning the buyer of the call option does not take the seller of the covered call up on the option of buying the stock -- then the seller of the covered call simply earns the income and does not part with the stock. Covered calls are a way to earn income from stock investments that are meant to be held for a long-time, or as a way to reduce downside risk in stocks. They are a bit more of an advanced strategy; see our section on Covered Calls for a complete introduction.

Alternatives. These are investments that are not quite yet common in today's structured and highly regulated world, but offer opportunities nonetheless. Examples include renting property you own (perhaps via sites like AirBNB or GetAround) as well as making loans to individuals directly (via services like Prosper or LendingClub). It can also include unique investments, typically only available in small businesses or as private deals off exchanges, in which investors are paid on a per sale basis -- an arrangement known as a royalty agreement.

National or supranational government bonds are the baseline for income investing. They are regarded as risk-free, under the belief (rightly or wrongly) that national or supranational governments can always pay back bonds, as in the worst case scenario they can simply print money to pay back their debt. When evaluating income investments, comparisons to the rate of return on government bonds is thus common and useful to many.

Compounding is the key. Income investment takes time to really pay off, and thus patience is essential. Investors who focus on diligently investing in income-yielding assets, and then re-investing that income into more income-yielding assets, will experience a compounding effect that, in time, leads to great wealth. Thus, income strategies are also often associated with long-term wealth plans.