“Capital growth versus income. What should be more important to me and why?”

If there are any Gen X readers wealthy enough to retire now, let them raise their hands, so that the rest of us may bow down before them and give praise!

Sacrilegious? Only in a Life of Brian sense. We don’t worship money here. But as the eldest of our generation is only now in their mid-40s, retiring happy now would have required the golden touch of Midas … or the sheer arse of Steven Bradbury.

Investment income is what’s needed when you’ve reached retirement (Retirees) or potentially as you’re approaching it (Boomers).

Consequently, Gen Xers should largely be chasing capital growth from their investments. While we’re working full time, we shouldn’t need extra income.

Gen Xers’ investment portfolios should have a strong leaning towards growth assets (shares and property). Any investment income, such as dividends or rent, should be ploughed back into further investments, allowing the near magical power of compounding to work its wonders.

This was my point behind writing Debt Man Walking – Gen Xers are in a sweet spot where incomes are still rising. You have the chance, if you start now, to grow an investment portfolio that will take care of you when you retire.

Xers’ rising incomes can be used – potentially with a bit of investment debt – to insure they’re not reliant on the age pension.

Now is not the time to chase investment income streams. Leave that till you’re looking like Burt Reynolds.

Bruce Brammall is the author of Debt Man Walking (www.debtman.com.au) and a licensed financial adviser.