Fixed-income investing often takes a backseat in our thoughts to the fast-paced stock market, with its daily action and promises of superior returns, but if you're a retired investor, or are approaching retirement, fixed-income investing must move into the driver's seat. At this stage, preservation of capital with a guaranteed income stream becomes the most important goal. In today's ultra-low interest-rate world, fixed-income investing has become much more complex, and gone are the days where one could invest in U.S. Treasuries at 8%, sit back, and let the income roll in.
Today, investors need to mix things up and get exposure to different asset classes to keep their portfolio incomes high, reduce risk and stay ahead of inflation. Even the great Benjamin Graham, the father of value investing, suggested a portfolio mix of stocks and bonds for later-stage investors. If he were alive today, he would probably sing the same tune, especially since the advent of new and diverse products and strategies for income-seeking investors. In this article, we'll lay down the road map for creating a modern fixed-income portfolio.
Read full article at investopedia.com
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