CVS - REITs Vs. Bonds In Retirement

When the main investment objective is to generate highly consistent and safe income, investors have historically turned to bonds (LQD, VCLT, IEF). While this may have worked well in the past and allowed investors to earn a satisfying yield, today's environment is much less favorable to bond investors.

After a multi-decade-long decline in interest rates, the yields are today at historically low levels:

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This creates two major issues to retirees:

• Not enough income is earned to meet their retirement needs.
• The value of their bond holdings may erode if and