I am thinking of writing a book called Investor Income Anxiety.

I see more and more cases of people desperate to take an income from their assets but face a reduced amount as they have historically used cash. These people are being forced to consider moving up the risk scale purely because interest rates are so low.

Now this may not seem like hot news to you, but do bear in mind that the sort of interest rate you are able to obtain at this point is even lower than you could have got less than a month ago, as fixed rates have reduced further. It is having a significant impact for some.

Indeed it is getting to the point that investors feel they either have to tie up their money in very long term rates to get a marginally higher income, which may not fit their requirements and may mean that they miss out on interest rate rises, when these eventually occur. Alternatively, investors feel they have to start considering assets that involve an element of risk, which they would prefer not to. Now it may well be that it is worth taking on board some risk, if you have a long enough investment horizon and a decent spread of assets, but that is not always the case.

So if you are chasing more income, think carefully about the options. Basically there are no risk-free investments that pay a high income. So either you accept the increased risk or stay in safer assets with a lower income. Above all and whatever option you pursue, know the downsides as well as the upsides.

It helps to go in with your eyes open.