How to invest $100,000 for income: 3 experts go head-to-head

In today’s market, income investing is no longer just about dividends and deposits. With inflation, interest rate shifts, and political uncertainty all in play, investors need to be nimble and selective in how they generate reliable income.

In this special panel session for Livewire Markets’ 2025 Income Series, three seasoned portfolio managers share their sharply contrasting strategies and what they believe are the biggest risks and opportunities on the horizon.

For equities, Dr Don Hamson of Plato Investment Management is steering through shrinking dividend yields and the return of market volatility. His team runs a high-turnover portfolio to stay ahead of dividend traps. He warns that equity investors can’t afford to be passive.

“You can no longer take a set-and-forget approach to your portfolio… about 20% of stocks cut their dividends each year.”

In the bond market, Dylan Bourke of Kapstream Capital sees value in active duration management and global diversification, especially with yields now firmly above zero.

“In 2022, when rates rose sharply, we reduced our exposure to interest rate risk. But now we’re adding it back in.”

Meanwhile, Craig Schloeffel from HMC Private Credit offers a very different perspective, grounded in physical assets and floating-rate loans backed by residential real estate.

“Private credit gives you transparency – you can literally see what’s happening at the property.”

While each manager works in a different part of the income spectrum, one theme unites them: opportunity still exists, but it comes with new kinds of risk. Political volatility, market fragility, and supply chain disruptions all loom large in their thinking. So does the importance of being dynamic and disciplined in today’s environment.

Watch the video for the full discussion, including what each manager would do with a hypothetical $100,000 inheritance.

TIME CODES
0:04 - Intro
0:40 - Factors influencing ability to generate income - Don
1:17 - Factors influencing ability to generate income - Dylan
1:41 - Factors influencing ability to generate income - Craig
2:06 - Plato delivering income via equities
3:40 - Kapstream's focus on high-quality credit and actively managed bond portfolios
5:29 - HMC Private Credit as a viable income alternative
7:23 - Biggest risks and opportunities over the year ahead
13:00 - 60-second pitch on why they should get the $100,000